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San Leandro Investment Policy Statement Page 5 of 13 U.S. Treasury Bills, Notes and Bonds or those for which the full faith and credit of the United States is pledged for the payment of principal and interest. The State of California Local Agency Investment Fund (LATE). The City may deposit up to $40 million in each City/Agency account. Banker's Acceptances with maturities no longer than 1$0 days. No more than 30% of idle funds maybe invested in the banker's acceptances of a single bank. The bank must have an "A" or prime rating from Moody's Investor's Services (Moody's) or Standard and Poor's (S&P). The total investment in banker's acceptances may not exceed 40% of idle funds. Commercial Paper having a "prime quality" rating by S&P (A-1) and Moody's (P-1) issued by any domestic corporation having assets in excess of $500 million and a minimum rating of "AA" for its debt other than commercial paper. Maturities of individual commercial paper securities cannot exceed 270 days or represent more than 10% of the issuer's outstanding commercial paper. No more than 25% of the portfolio can be invested in commercial paper. Medium-Term Corporate Notes with a maximum maturity of five years and issued by corporations organized and operating in the United States or by depository institutions licensed by the United States, any state or operating within the United States. Securities issued by corporations must be rated "AA" or better by S&P and Moody's. Purchases may not exceed 30% of idle funds at the time of purchase. Repurchase Agreements that comply with statutory requirements having a term of one year or less, supported by a master repurchase agreement with the bank or dealer, and fully collateralized by delivery to a third-party custodian. Holdings cannot exceed 20% of idle funds. Reverse Repurchase Agreements that comply with statutory requirements and are fully collateralized by delivery to a third-party custodian. The maximum term for reverse repurchase agreements is 92 days. The proceeds of reverse repurchase transactions must be invested in securities having maturities shorter than or equal to the term of the underlying agreement. Reverse repurchase agreements cannot exceed 20% of idle funds. Passbook Savings Accounts in the form of insured or collateralized time deposits. If collateral is U.S. government securities, the market value must be at least 110% of the deposit. Promissory notes secured by first mortgages or trust deeds used as collateral require a market value of at least 150% of the amount deposited. Mutual Funds consisting of investment securities permitted under Sections 53601 and 53635 of the California Government Code. To be eligible for City investments, companies providing mutual funds shall have either or both of the following: 1. The highest rating provided by not less than two of the three largest nationally recognized rating services.