Laserfiche WebLink
<br />X. COLLATERALIZATION <br /> <br />Collateralization will be required on time and demand deposits and repurchase agreements. In order <br />to anticipate market changes and provide a level of security for all funds, the collateralization level <br />will be a minimum of 102% of market value. All collateral shall be priced and monitored daily by <br />the counter party. The counter party shall be made contractually liable for monitoring and maintaing: <br />the collateral and required margins at all times. <br /> <br />The City chooses to limit collateral on time deposits to those authorized investments listed in Section <br />IX, subdivision (1) - (4) and to Section IX, subdivision(l) for repurchase agreements. Collateral will <br />always beheld by an independent tmrd party with whom the City has a current custodial agreement. <br />A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and <br />retained. The right of collateral substitution is granted with prior City approval. <br /> <br />XI. SAFEKEEPING AND CUSTODY <br /> <br />In order to ensure custodial protection, the City has established delivery and possession procedures <br />for all transactions, except pools and money market funds, wmch have no book entry delivery. <br />Specifically, all security transactions, including collateral for repurchase agreements, entered into by <br />the City shall be conducted on a delivery versus payment (DVP) basis to the City's depository or <br />City approved third party custodian. Securities will be held by a third party custodian approved by <br />the InvestmentOfficer(s) and evidenced by proof of ownership (original safekeeping receipts). <br /> <br />If the brokerage subsidiary of the City's banking services bank is used, any security purchased for it <br />must besafekeptin the bank's trust department to fulfill DVP requirements. <br /> <br />XII. DIVERSIFICATION <br /> <br />Diversification of the overall portfolio will be maintained in accordance with the following <br />diversification limits. <br /> <br />Security Type <br /> <br />Maximum % of Portfolio <br /> <br />US Government Treasury Obligations <br />US Government Agencies and Instrumentalities <br />Municipal Instruments <br />Certificates of Deposit <br />Repurchase Agreements <br />Flex repurchase agreements for bond proceeds <br />Constant dollar investment pools <br />Commercial· Paper <br />Limit per commercial paper issuer <br />Money Market Mutual Fund <br /> <br />90% <br />80% <br />20% <br />20% <br />100% <br />100% <br />100% <br />25% <br />10% <br />50% <br /> <br />City of San Marcos Investment Policy <br /> <br />Page 6 <br />