All cash and other bank deposits maintained in any financial institution shall be either insured by the Federal Deposit Insurance Corporation (FDIC) or collateralized. All bank deposits of KSU in excess of the FDIC-insured amount shall be collateralized. KSU shall have either legal title to, or a perfected security interest in, any collateral. All physical collateral shall be held by an independent third-party custodial agent, and a safekeeping receipt shall be maintained by KSU as evidence of ownership. The right of collateral substitution is permitted only with the prior written permission of KSU.

The President, or his or her designee, shall periodically evaluate all investment decisions and outcomes to determine if the investment objectives outlined in this policy are being met. This review shall provide direction for any changes needed to maximize the total return on all investments within the stated risk parameters.