The latest banking failure affects a short-term investment fund used by the University of Mary.

"It's unfortunate," said Brent Winiger, University of Mary vice president of financial services. "It tied up my week."

The short-term investment fund of the Commonfund, which is operated by Wachovia, was closed, and limitations were placed on withdrawing money. Some non-profit institutions, like private schools and colleges, invest money in the fund.

The University of Mary invested in short-term and long-term funds offered by Connecticut-based Commonfund. The funds placed in Commonfund investments are about a fourth of the investments held by the university. More money is invested with long-term equity funds compared to short-term investment funds offered by Commonfund, Winiger said.

University of Mary has money invested in other interest-bearing accounts, including local banks.

"Commonfund is one of the top investment houses for nonprofits," Winiger said. "It offered low fees and good returns."

A short-term investment fund, like the short-term investment fund offered by Commonfund, lets the university invest money while still having access to it. Money from those accounts can be used to pay operational expenses and salaries.

A representative for the fund contacted Winiger about the changes. It won't affect daily operations of the university. The restrictions placed on the closed fund should not affect payroll or other expenses, Winiger said. If the university needs to, it will rely on local banks until the money is available from that fund.

Primary sources of funding for the university are tuition, auxiliary businesses, investments and benefactors.

The closure of the fund won't affect public colleges. Bismarck State College is required to invest in Bank of North Dakota CDs, according to Tamara Barber, BSC associate vice president of finance and operations.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@;bismarcktribune.com.)