Legal Definitions - approved list

An approved list, also known as a legal list, is a group of investments that institutions and fiduciaries, such as banks and insurance companies, are legally allowed to invest in according to state statutes. These investments are usually low-risk securities that meet specific requirements set by the state.

• Government bonds
• Certificates of deposit
• Highly rated corporate bonds

These examples illustrate the definition of an approved list because they are all low-risk investments that meet the specific requirements set by the state. Institutions and fiduciaries can legally invest in these securities without breaking any laws.