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San Leandro Investment Policy Statement Page 11 of 13 <br /> Appendix B <br /> Glossary of Technical Terms <br /> Banker's Acceptance (BA) — A draft or bill of exchange accepted by a bank or trust <br /> company. The accepting institution guarantees payment of the bill. <br /> Broker — A broker, as opposed to a dealer, brings buyers and sellers together in <br /> exchange for an agreed upon commission or fee. A broker is not a principal party to the <br /> transaction. <br /> Certificate of Deposit (CD) — A time deposit with a specific maturity date and specific <br /> interest rate as evidenced by a certificate. <br /> Certificate of Deposit Account Registry Service (CDARS) — A private sector entity <br /> that assists in the placement of certificates of deposit with one or more commercial <br /> banks, savings banks, savings and loans associations, or credit unions that are located <br /> in the United States, for the City's account. <br /> Collateral — Securities pledged by a bank or other financial institution to secure <br /> repurchase agreements, certificates of deposit and deposits of public monies. <br /> Commercial Paper — Negotiable short-term promissory notes issued by larger, well- <br /> known corporations. <br /> Dealer—A dealer, as opposed to a broker, acts as a principal in all transactions, buying <br /> and selling for its account. <br /> Delivery Versus Payment — a method of purchasing securities where the security is <br /> delivered to the safekeeping party in exchange for cash payment. <br /> Federal Deposit Insurance Corporation (FDIC) — A federal agency that insures bank <br /> deposits— currently up to $100,000 per deposit. <br /> Federal Farm Credit Bank (FFCB) — A federal government sponsored bank that <br /> provides loans and letters of credit that support United States agriculture. <br /> Federal Home Loan Banks (FHLB) — Federal government sponsored wholesale banks <br /> that lend funds and provide banking services to member commercial banks, thrift <br /> institutions, credit unions and insurance companies. <br /> Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac") — A federal <br /> corporation that provides low cost residential mortgage funds to qualified borrowers. <br /> Federal National Mortgage Association (FNMA or "Fannie Mae") — A federal <br /> corporation working under the auspices of the U.S. Department of Housing and Urban <br /> Development (HUD). FNMA is the largest single provider of residential mortgage funds <br /> in the United States. <br />