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San Leandro Investment Policy Statement Page 9 of 18 <br /> <br /> <br /> <br />This policy will be reviewed annually with the City Council to ensure compliance with the <br />objectives of safety, liquidity and yield and adherence with applicable laws. The City <br />Council Finance Committee will review and approve all changes to this policy statement <br />prior to submittal to the full City Council for approval. <br /> <br />California Government Code Section 53646 states that the Finance Director may render a <br />quarterly report on the status of the City’s investment portfolio to the City Manager and the <br />City Council within 45 days after the end of the calendar quarter. The report will provide <br />detailed information regarding the type of investments, the amount invested with various <br />institutions, purchase and maturity dates, and interest yield on all investments. The report <br />shall state if the City’s investments are in compliance with this policy and if the City will be <br />able to meet its cash obligations during the next six-month period. The Finance Director <br />will post a monthly transactions report on the portfolio’s activity on the City’s public website <br />that will be available to the City Manager, Finance Committee, City Council, and the general <br />public consistent with the requirements of the State Code. <br /> <br />XVI. Prohibited Investment Vehicles and Practices <br />• State law notwithstanding, any investments not specifically described herein are <br />prohibited, including, but not limited to futures and options. <br />• In accordance with Government Code, Section 53601.6, investment in inverse <br />floaters, range notes, or mortgage derived interest-only strips is prohibited. <br />• Investment in any security that could result in a zero interest accrual if held to <br />maturity is prohibited. Under a provision sunsetting on January 1, 2026, <br />securities backed by the U.S. Government that could result in a zero- or negative- <br />interest accrual if held to maturity are permitted. <br />• Trading securities for the sole purpose of speculating on the future direction of <br />interest rates is prohibited. <br />• Purchasing or selling securities on margin is prohibited. <br />• The use of reverse repurchase agreements, securities lending or any other form <br />of borrowing or leverage is prohibited. <br />• The purchase of foreign currency denominated securities is prohibited. <br />• Agencies that are not Qualified Institutional Buyers (QIB) as defined by the <br />Securities and Exchange Commission are prohibited from purchasing Private <br />Placement Securities. The SEC defines a QIB as having at least $100,000,000 <br />in securities owned and invested.