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2 <br /> I. The LGIP <br /> The Local Government Investment Pool(the"LGIP")is an investment pool of public funds placed in the custody of <br /> the Office of the Washington State Treasurer(the"State Treasurer")for investment and reinvestment as defined <br /> by RCW 43.250.020. The purpose of the LGIP is to allow eligible governmental entities to participate with the state <br /> in the investment of surplus public funds,in a manner that optimizes liquidity and return on such funds. In <br /> establishing the LGIP,the legislature recognized that not all eligible governmental entities are able to maximize the <br /> return on their temporary surplus funds,and therefore it provided a mechanism whereby they may,at their <br /> option,utilize the resources of the State Treasurer to maximize the potential of their surplus funds while ensuring <br /> the liquidity of those funds. <br /> The State Treasurer has established a sub-pool within the LGIP whose shares are offered by means of this <br /> Prospectus:The LGIP-Money Market Fund(the"LGIP-MMF"or the"Fund"). The State Treasurer has the authority <br /> to establish additional sub-pools in the future. <br /> The Fund offered in this Prospectus seeks to provide current income by investing in high-quality,short term money <br /> market instruments. These standards are specific to the Fund,as illustrated in the following table. The LGIP-MMF <br /> offers daily contributions and withdrawals. <br /> FUND SNAPSHOT <br /> The table below provides a summary comparison of the Fund's investment types and sensitivity to interest rate <br /> risk. This current snapshot can be expected to vary over time. <br /> r�'` Fund Ivestli�i$ia' � Maximum Dollar Weigh e <br /> Average Maturity <br /> LGIP-Money Market Fund Cash 60 days <br /> Current Investments(as of November Bank Deposits <br /> 1,2013) US Treasury bills <br /> Repurchase agreements <br /> US Government agency obligations <br /> Fees and Expenses <br /> Administrative Fee. The State Treasurer charges pool participants a fee representing administration and recovery <br /> costs associated with the operation of the Fund. The administrative fee accrues daily from pool participants' <br /> earnings prior to the earnings being posted to their account. The administrative fee will be paid monthly. In the <br /> event that there are no earnings,the administrative fee will-be deducted from principal. <br /> The chart below illustrates the operating expenses of the LGIP-MMF for past years,expressed in basis points as a <br /> percentage of fund assets. <br /> 3 <br /> 15 <br />