8H Consent 2011 0620 - Laserfiche WebLink

Home

San Leandro Investment Policy Statement Page 4 of 13 VII. Authorized Financial Dealers and Institutions The Finance Director will maintain a list of approved security brokers and dealers, selected based on creditworthiness and industry standing that are authorized to provide investment services in the State of California. These may include "primary" dealers and /or regional dealers that qualify under Securities and Exchange Commission Rule 15C3 -1 (uniform net capital rule). Deposits of City funds will be made only to qualified public depositories as established by State law. Prior to doing business with the City, investment brokers and dealers must provide the Finance Director the following: ♦ A copy of their most recent audited financial statements. ♦ Proof of registration with the State of California. ♦ Written certification that the firm has read and will comply with all provisions of this investment policy statement. ♦ Signed contractual agreement(s). The Finance Director will conduct an annual review of the financial condition and business practices of authorized broker /dealers at the end of each fiscal year. VIII. Authorized and Suitable Investments All investments shall be made in accordance with California Government Code Sections 53600 et. seq. and as described within this Investment Policy. No investment shall be made in any security that has a remaining term to maturity in excess of five years unless City Council has granted express authority to make the investment either specifically or as part of an approved investment program. Eligible Local Institutions must have received an overall Community Reinvestment Act (CRA) rating of at least "satisfactory" on its most recent evaluation by the appropriate federal financial agency to receive deposits from the City of San Leandro. This applies to banks, savings and loans, and credit unions. The city's investment portfolio may include the following instruments: Negotiable Certificates of Deposit (CD's) are a fixed deposit certificate that may be negotiated (traded) to a third party and is issued by a local bank or savings and loan institution. Certificates of Deposit will either be insured by the Federal Deposit Insurance Corporation (FDIC) or be fully collateralized by delivery to a third -party custodian. Securities pledged as collateral shall have a market value of at least 110% of the value of all deposits. Purchases of these instruments may not exceed 30% of the entire portfolio. U.S. Government Agency Securities include a wide variety of government securities. These securities include U.S. government- sponsored enterprise obligations, such as the Federal Farm Credit Bank (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), or any other U.S. government agency. There are no portfolio limitations on the amount.