The U.S. Treasury has issued its first rejections of money funds applying to its Temporary Money Market Fund Guaranty Program. In its press release, "Reserve Announces Participation of Some Funds in the Treasury Guarantee Program", The Reserve reveals that the following funds have been rejected from the Treasury program: Primary Fund, U.S. Treasury Fund, Interstate Tax-Exempt Fund, California Municipal Money-Market Fund, Connecticut Municipal MMF, Florida Municipal MMF, Massachusetts Municipal MMF, Michigan Municipal MMF, New Jersey Municipal MMF, Ohio Municipal MMF, Pennsylvania Municipal MMF, Virginia Municipal MMF, New York Municipal MMF, Arizona Municipal MMF, Louisiana Municipal MMF, and Minnesota Municipal MMF. Reserve says, "Although the following funds also applied to participate in the Program, the Department of the Treasury has informed The Reserve that these funds did not meet the Program's eligibility requirements." The following funds have been accepted into the Treasury's Temporary Guarantee Program for Money Market Funds: `Primary II Fund, Reserve Liquid Performance Money Market Fund, U.S. Government Fund, U.S. Government II Fund Treasury & Repo Fund. This latest Reserve release adds, "Other than the U.S. Treasury Fund, the Board of each of the ineligible funds has voted to approve the fund's liquidation. The Reserve continues to work diligently to expeditiously sell the assets of these funds at or above amortized cost and make distributions to fund shareholders. Aside from Primary Fund, Reserve expects that all fund distributions will be made based on a net asset value of $1. Accordingly, Reserve believes that the ineligibility of these funds to participate in the Program will not be detrimental to shareholders. U.S. Treasury Fund will continue its operations. The Reserve believes that even absent participation in the Program, the U.S. Treasury Fund's investment strategy to invest exclusively in securities backed by the full faith and credit of the U.S. government limits the potential for the net asset value of the Fund to fall below $1.00."
