Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the will not be able to recover the value of its investments or collateral securities that are in the Entity possession of an outside party. The does not have a formal policy for custodial credit risk. As of Entity June 30, 20xx, the had $$$ in [type of investment(s)] which was/were held by the investment’s Entity counterparty and $$$ in [type of investment(s)] which was/were held by the counterparty’s trust department or agent but not in the government’s name. Foreign Currency Risk Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The does not have a formal policy for foreign currency risk. Entity **Note The previous paragraphs describing the policies for the various investment risks are only – required when those risks are present. (For example, the preceding paragraph on Foreign is only needed if the entity does hold an investment denominated in a foreign Currency Risk currency. Also, the second paragraph under is only needed if the Concentration of Credit Risk entity has this risk.)
Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Entity will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Entity does not have a formal policy for custodial credit risk. As of June 30, 20xx, the Entity had $$$ in [type of investment(s)] which was/were held by the investment’s counterparty and $$$ in [type of investment(s)] which was/were held by the counterparty’s trust department or agent but not in the government’s name. Foreign Currency Risk Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The Entity does not have a formal policy for foreign currency risk. **Note – The previous paragraphs describing the policies for the various investment risks are only required when those risks are present. (For example, the preceding paragraph on Foreign Currency Risk is only needed if the entity does hold an investment denominated in a foreign currency. Also, the second paragraph under Concentration of Credit Risk is only needed if the entity has this risk.)
Investment-Footnote-Template-Other-Entities.docx