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San Leandro Investment Policy Statement Page 13 of 14 <br /> <br /> <br />Appendix B <br />Glossary of Technical Terms <br /> <br /> <br />Banker’s Acceptance (BA) – A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill. <br /> <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 transaction. <br /> <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 that assists in the placement of certificates of deposit with one or more commercial banks, <br />savings banks, savings and loans associations, or credit unions that are located in the <br />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 /> <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 delivered to the safekeeping party in exchange for cash payment. <br /> <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 /> <br />Federal Home Loan Banks (FHLB) – Federal government sponsored wholesale banks that lend funds and provide banking services to member commercial banks, thrift institutions, credit unions and insurance companies. <br /> <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 in <br />the United States. <br />178