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<br /> <br />6. Pursuant to Section 345 of the Bankruptcy Code, any <br />deposit or other investment made by a debtor except those insured <br />or guaranteed by the United States or by a department, agency, <br />instrumentality of the Untied States or backed by the full faith <br />and credit of the United States must be secured by a bond in <br />favor of the United States and a corporate surety approved by the <br />United States Trustee or the deposit of securities of the kind <br />specified in 31 U.S.C. § 9303. <br />7. Presently, the Debtors invest their money with <br />Colorado National Bank under a master repurchase agreement. <br />Under the repurchase agreement with Colorado National Bank, the <br />Debtors invest their funds in U.S. Government securities. Thus, <br />the Debtors' current investments may meet the standard set forth <br />in Section 345 of the Bankruptcy Code. <br />8. The Debtors will maximize the return from <br />investment to their estates by investing their funds under the <br />Tri-Party Repurchase Agreement with Shearson Lehman Brothers. <br />SUMMARY OF CFiI'H PROPOHED CAHB MANAGEMENT BYHTEM WITB <br />HHSARHON LBHMAN HROTHERB <br />9. The Tri-Party Repurchase Agreement basically <br />provides the Debtors with a short-term investment program which, <br />in the Debtors view, complies with the requirements of Section <br />345 of the Bankruptcy Code. Chief among the benefits to the <br />Debtors from the Tri-Party Repurchase Agreement are the ability <br />to (a) maximize yield on corporate funds, (b) invest idle cash, <br />3 <br />