(a) All investments purchased in the fund belong jointly to the fund participants and the participants must share capital gains, income, and losses on a pro rata basis.
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Terms Used In Tennessee Code 9-4-706

  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
(b) In the event that the local government investment pool experiences a negative interest rate, it may result in a loss to pool participants, and may result in the loss of principal. The state treasurer may deduct the negative earnings from each participant’s local government investment pool account as a right of setoff.
(c) The reasonable charge that is deducted from each participant’s account balance or balances that is deposited in the revolving account may be expended for the following purposes, including, but not limited to, payment:

(1) In whole or in part, of any loss experienced by pool participants or a pool participant to be distributed on a pro rata basis;
(2) In whole or in part, of the state treasurer’s administrative fee for the operation of the local government investment pool;
(3) In whole or in part, of any expenses, losses, shortfalls, deficits, or deficiencies resulting from operational, accounting, or administrative errors;
(4) Of the expenses for the administration of the local government investment pool, including, but not limited to, the procurement and implementation of electronic systems and functionality; and
(5) Of any other expenses necessary and appropriate as determined by the state treasurer.
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