Series 50: State And Local Government Series (SLGS)

State and Local Government Series (SLGS)

SLGS are nonmarketable certificates, notes, and bonds that the U.S. Treasury offers to state and local governments as a means to invest the proceeds from their own issued securities. The Treasury established the State and Local Government Series in 1972 because these governments are prohibited from investing tax-exempt bond proceeds in “higher yielding instruments.” SLGS are offered for sale only to issuers of state and local tax-exempt debt to help them comply with their yield restrictions.

SLGS come in two forms. The time deposit series issues securities as Certificates