Laserfiche WebLink
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 />For repurchase agreements (Sec. 2256.011), Cash and obligations of the United States, its agencies or <br />instrumentalities to include commercial paper and corporate bonds, when applicable <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 />ownership (original safekeeping receipts). <br />XIII. DIVERSIFICATION <br />Diversification of the overall portfolio will be maintained in accordance with the following diversification <br />limits. <br />Security Type <br />US Government Treasury Obligations <br />US Government Agencies and Instrumentalities <br />Municipal Instrument <br />Certificates of Deposit <br />Issued by institution <br />Repurchase Agreements <br />Flex repurchase agreements for bond proceeds <br />Local Government Investment pools <br />Ownership of the pool <br />Commercial Paper <br />Limit per commercial paper issuer <br />Money Market Mutual Fund <br />Ownership of the fund <br />City of San Marcos Investment Policy <br />Maximum % of Portfolio <br />100% <br />80% <br />50% <br />40% <br />20% <br />30% <br />100% <br />100% <br />10% <br />30% <br />10% <br />50% <br />10% <br />