Clarification of Phrase Referring to Safe Bonds

Views were provided as to what constitutes "other safe bonds" as that phrase is used in the First Morrill Act. In an earlier, related decision, GAO noted that the Department of Health, Education, and Welfare (HEW), which administers the First Morrill Act, considered bonds approved for investments by fiduciaries by Rule 23 of the Rules of the U.S. District Court for the District of Columbia to be "other safe bonds." Since issuance of that decision the courts of the District of Columbia were reorganized and ceased maintaining a list of approved securities, substituting a more general standard that was not considered sufficient as a guideline for conforming to the First Morrill Act. It was advised that GAO would consider bonds rated A or better by one of the leading rating services as conforming to the phrase "other safe bonds," subject to any further restrictions which HEW may impose.