This investment policy and procedures shall be effective as of January 1, 1994.  The Board will monitor Liatis' overall portfolio to ensure that the interest rate and credit quality risks are identified and manageable.

The President will be designated as director of investments by Liatis Board of Directors.  All investments may be purchased and/or sold at the discretion of the President and his designates in accordance with the "Permitted Investments" criteria stated herein.  The President, with the approval of the Board of Directors, may utilize the services of third party registered investment advisors and managers to carry out the purposes of these investment policies and procedures.

Targeted Asset Class Allocation % of Invested Assets
Cash Equivalents 0 to 100
Fixed Income Securities 0 to 100
Equities: Preferred and Common 0 to 70
Real Estate Subject to limits for asset class
Mutual Funds/Partnerships/
Trusts/LLCs Other Assets
0 to 25

Compliance with each of these targets is to be determined as of the date an investment is to be made. No adjustment to an asset class will be required should the aggregate investment for such class exceed its maximum percentage as a result of a decrease in the value of the total portfolio. Each asset class will be subject to limits for any subcategories of such class as set forth in the Permitted Investments.

Notwithstanding anything contained herein to the contrary, Liatis will not loan any of its assets without written consent of its Board of Directors.