Monteagle Funds can loan its portfolio if secured with collateral

By Toni Weeks

San Diego, Oct. 24 - Monteagle Funds has established a policy concerning loans of its portfolio securities to broker-dealers and other institutional investors, according to a 497 filing with the Securities and Exchange Commission.

The Oct. 24 policy affects the Monteagle Fixed-Income Fund, the Monteagle Informed Investor Growth Fund, the Monteagle Quality Growth Fund, the Monteagle Select Value Fund and the Monteagle Value Fund.

Under the policy, a fund may lend its portfolio securities to broker-dealers and other institutional investors if the loans are continuously secured by collateral at all times equal in value to at least the market value of the loaned securities. Collateral could include cash, U.S. government securities or an irrevocable letter of credit issued by a bank deemed creditworthy by the adviser or subadviser.

In addition, no more than one-third of the value of a fund may be loaned, and the borrower must be deemed creditworthy by the adviser or subadviser.

If a fund does not recover the securities loaned, it may sell the collateral and purchase a replacement security in the market, the filing noted.

The fund's adviser is Nashville Capital Corp.

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