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VII. Authorized Financial Dealers and Institutions <br />The Finance Director will maintain a list of financial institutions and depositories <br />authorized to provide investment services. In addition, a list will be maintained of <br />approved security broker/dealers selected after conducting a process of due diligence. <br />These may include "primary" dealers or regional dealers that qualify under Securities <br />and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). The City’s <br />Finance Director/Treasurer will determine which financial institutions are authorized to <br />provide investment services directly to the City. Institutions eligible to transact <br />investment business with the City include: <br /> <br />1. Primary dealers and regional dealers; <br />2. Nationally or state-chartered banks; <br />3. The Federal Reserve Bank; and, <br />4. Direct issuers of securities eligible for purchase. <br /> <br />A. Selection of financial institutions and broker/dealers authorized to engage in <br />transactions with the City will be at the sole discretion of the City. <br /> <br />B. All financial institutions which desire to become qualified bidders for investment <br />transactions (and which are not dealing only with the investment adviser) must <br />supply the Finance Director/Treasurer with a statement certifying that the institution <br />has reviewed the California Government Code Section 53600 et seq. and the City’s <br />Investment Policy. <br /> <br />C. Selection of broker/dealers used by an external investment adviser retained by the <br />City will be at the sole discretion of the investment adviser. <br /> <br />D. Public deposits will be made only in qualified public depositories as established by <br />State law. Deposits will be insured by the Federal Deposit Insurance Corporation, <br />or, to the extent the amount exceeds the insured maximum, will be collateralized in <br />accordance with State law. <br /> <br /> <br />VIII. Authorized and Suitable Investments <br />All investments shall be made in accordance with California Government Code Sections <br />53600 et. seq. and as described within this Investment Policy. <br /> <br />No investment shall be made in any security that has a remaining term to maturity in <br />excess of five years unless City Council has granted express authority to make the <br />investment either specifically or as part of an approved investment program. <br /> <br />Eligible Local Institutions must have received an overall Community Reinvestment Act <br />(CRA) rating of at least “satisfactory” on its most recent evaluation by the appropriate <br />federal financial agency to receive deposits from the City of San Leandro. This applies to <br />banks, savings and loans, and credit unions. <br />