A. The reserve assets of the Haines Borough will be invested in the best manner possible in order to ensure adequate cash flow at all times, to preserve and protect principal and to achieve an acceptable rate of return. Of these purposes, ensuring liquidity and preservation of principal are of the highest priority while rate of return is of secondary importance.

B. The standard of prudence to be applied to all municipal investments shall be the “prudent person” rule. This rule states that investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. (Ord. 07-08-164 § 4)