As of December 31, 2012, The Township had the following investments:
| Fair Value | Book Value | |
|---|---|---|
| 2012 | ||
| Current Fund Special | ||
| Emergency Note Held by | ||
| General Capital Fund | $ 1.905.000 | $ 1.905.000 |
For an investment, this is the risk that, in the event of the failure of the counterparty, the Township will not be able to recover the value of its investments or collateral securities that are held by an outside party. The Township does not have a policy for Custodial Risk. As of December 31, 2012 and 2011, $74,328 and $69,195, respectively, of the Township's investments was exposed to Custodial Credit Risk, as follows:
| Fair Value (LOSAP) | Book Value | Total Reported Value | |
|---|---|---|---|
| 2012 | |||
| Uninsured and Collateralized: | |||
| Collateral held by pledging financial Institution's Trust Department but not in the Township's name | $ 74.328 | $ 74.328 | $ 74.328 |
The Borough does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.
28