Reso 1997-031 to 035 - Laserfiche WebLink

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Apri17, 1997 Page 2 of 3 IV. Acceptable Investment Instruments The City's investment portfolio may include the following instruments. No investment shall be made in any security that at the time of the investment has a term remaining to maturity in excess of five years, unless the City Council has granted express authority either specifically or as part of an investment program approved by the City Council, within three months prior to the investment. 1. Certificate of Deposit purchased from local banks or savings and loan institution. Certificates of Deposit shall be either insured by the Federal Deposit Insurance Corporation (FDIC) or fully collateralized. Securities pledged as collateral shall have a market value of at least 110% of the total of all deposits. 2. Securities of Federal Agencies (e.g., Federal National Mortgage Association, Government National Mortgage Association, Federal Farm Credits, Student Loan Marketing Association, Federal Home Loan Bank). 3. United States Treasury bills and notes, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest. 4. The State of California Local Agency Investment Fund (LAIF). The City may deposit up to a maximum of $20 million in each City/Agency account. 5. Bankers's Acceptances with maturities no longer than 270 days. No more than 30% of surplus funds may be invested in the banker's acceptances of a single bank. The financial institution must have an A or prime rating from Moody's Investors's Services or Standard and Poor's Corporation. Total portfolio investment in these securities shall not exceed 40% of City/Agency surplus funds at the time of purchase. 6. Commercial Paper rated prime quality of the highest ranking or of the highest letter and numerical rating as provided by Moody's or Standard and Poor's. Eligible paper shall be limited to issuing corporations organized and operating within the United States and having total assets in excess of $500 million and an A or better rating for the insurer's debt other than commercial paper. Maturities of the commercial paper can not exceed 180 days nor represent more than 10% of the outstanding paper of the issuing corporation. Total portfolio purchases shall not exceed 15% of surplus funds or 30% if the average maturity does not exceed 31 days. 7. Medium -Term Corporate Notes with a maximum 'five year maturity 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. These securities issued by corporations shall be rated A or better, or the equivalent by Moody's or Standard and Poor's. Total portfolio purchases shall not exceed 30% of the surplus funds at the time of purchase.