Laserfiche WebLink
repo may exceed two years but not exceed the anticipated expenditure schedule of the bond <br /> proceeds and no party involved with the issuance of the debt shall be involved with the funds <br /> reinvestment. <br /> 7. Investment Pools as defined and regulated by the PFIA. <br /> 8. Commercial paper rated not less than Al/P1 or its equivalent by two nationally recognized <br /> rating agencies and not to exceed 270 days to stated final maturity. <br /> 9. AAA-rated, SEC registered money market funds as described in Sec. 2256.014 of the PFIA. <br /> 10. FDIC insured brokered certificate of deposit securities from banks in any US state, delivered <br /> versus payment to the City's safekeeping depository, not to exceed one year to maturity. <br /> Before purchase the Investment Officer or adviser must verify the FDIC status of the bank on <br /> www.2fdic.gov.idasp/main bankfind/asp to assure that the bank is FDIC insured. <br /> XI. COLLATERALIZATION <br /> Pledged Collateral <br /> Collateralization is required on time and demand deposits. In order to anticipate market changes and <br /> provide a level of security for all funds, the collateralization margin level will be maintained at a minimum of <br /> 102% of deposits plus accrued. The counter party shall be made contractually liable for monitoring and <br /> maintaining the collateral and required margins at all times. Collateral shall be priced at least monthly. <br /> The custodian shall provide the required periodic reports directly to the City. <br /> Owned Collateral <br /> Repurchase agreements shall be collateralized to 102% of principal and accrued interest. The counter <br /> party shall be made contractually liable for monitoring and maintaining the collateral and required margins <br /> at all times. Collateral shall be priced daily. The Custodian shall provide the required periodic reports <br /> directly to the City. <br /> Authorized Collateral <br /> Collateral shall be limited to the following: <br /> - Obligations of the US Government, its agencies and instrumentalities to include mortgage-backed <br /> securities which pass the bank test. <br /> - Obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as <br /> to investment quality by a nationally recognized investment rating firm not less than A or its equivalent. <br /> Collateral will always be held by an independent third party with whom the City has a current custodial <br /> agreement. A clearly marked evidence of ownership (report or receipt) must be supplied to the City and <br /> retained. The right of collateral substitution is granted with prior City approval. <br /> XII. SAFEKEEPING <br /> Safekeeping function will be provided by the City's banking services depository or a PFIA approved <br /> Safekeeping service contracted in conjunction to the City's banking services depository agreement. In <br /> order to ensure protection for City owned securities, the City requires delivery versus payment procedures <br /> for all transactions, except pools, money market funds and time deposits, which have no book entry <br /> delivery. <br /> All security transactions, including collateral for repurchase agreements shall be conducted on a delivery <br /> versus payment (DVP) basis to the City's depository or a City approved third party custodian. Securities <br /> will be held by a third party custodian approved by the Investment Officer(s) and evidenced by proof of <br /> City of San Marcos Investment Policy Page 5 <br />