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Simple English definitions for legal terms
approved list
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A quick definition of approved list:
An approved list, also known as a legal list, is a group of investments that institutions like banks and insurance companies are allowed to invest in according to state laws. These investments are usually low-risk and meet specific requirements set by the state. Legally means following the law, and legally determined means that a decision has been made through a legal process.
A more thorough explanation:
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.