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<br />IV. PURCHASING AND INVESTMENT <br /> <br />The Policy requires establishment and approval of an authorized broker/dealer list with whom the <br />City may transact businessa The broker/dealer questionnaire helps provide the following evaluation: <br /> <br />- Financial condition, strength and capability to fulfill commitments. <br />- Overall reputation with other broker/dealers and investorsa <br />- Regulatory status of the broker/dealera <br />- Background and expertise of the individual representativea <br /> <br />The Investment Adviser will contact an appropriate number of broker/dealers for offers based on <br />market evaluation, Investment Policy and collateral limitations, and cash flow information given <br />The following will be determined with the broker/dealer: <br />Settlement basis - Lea cash (same day), regular (next day), or when-issued (issue date) if <br />a new agency Issue. <br />- Amount available for investment, <br />- Type of security to be purchased excluded a <br />- Targeted maturity, or maturity rangea <br /> <br />If choosing an investment pool as the preferred investment vehicle, the Council resolution and <br />authorized individuals (PIN) resolutions must be in place prior to purchase and at any reasonable <br />time thereaftera All pool transactions are initiated and controlled by City Investment Officer(s) <br /> <br />All investment purchases will be executed using the competitive bidding process. A minimum of <br />three competitive offers on the purchase of every security will be obtaineda All investment purchases <br />will be executed in compliance with the Internal Revenue Service's Fair Market Rules. <br /> <br />Before concluding the transaction, the Investment Adviser verifies the following: <br /> <br />- The security meets all cash flow and Policy criteriaa <br />- The security structure including any imbedded options such as call provisions or coupon <br />adjustments. <br />- Yield calculations and settlement amountsa <br />- Total purchase cost (including accrued interest)a <br /> <br />And, <br /> <br />- Advises the successful provider that their offering has been selected for purchase. <br />- Notifies any unsuccessful broker/dealers a Best price may be disclosed. <br /> <br />City of San Marcos Investment Policy <br /> <br />Page 41 <br />