1031 Exchange Funds Investment Policy and Disclosure Statement

Exeter 1031 Exchange Services, LLC takes its fiduciary responsibilities and its duty of care for its clients extremely seriously when it comes to receiving, holding, managing, safeguarding and investing your 1031 exchange funds.  We ensure that your 1031 exchange proceeds are insured and bonded.

Our conservative investment policy requires that the investments be safe, secure and prudent, that the funds can be withdrawn upon short notice for use in the acquisition of your like-kind replacement properties and that the funds earn a competitive interest rate.  We are much more concerned with safety and liquidity of your 1031 exchange funds rather than with the interest rate or yield earned on your 1031 exchange funds.

Therefore, we will only invest your 1031 exchange proceeds in short-term money market demand accounts (MMDAs) or certificates of deposit (CDs) at commercial banks.  We can also invest in short-term money market mutual funds, short-term money market instruments, and/or in direct obligations of the United States Government if requested to do so by the client.

We would be happy to provide you with more detailed information regarding the specific commercial banks used by us for your 1031 exchange funds.  You can contact our national operations group for more complete details.

Effective: February 6, 2006

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