Res 2012-023 - Laserfiche WebLink

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X. AUTHORIZED AND SUITABLE INVESTMENTS Authorized investments shall be limited to the instruments listed below as authorized and further described by the Act. 1. Obligations of the United States, its agencies and instrumentalities, not to exceed three years to the stated final maturity, excluding mortgage- backed securities; 2 Direct obligations of the State of Texas or its agencies and instrumentalities, not to exceed three years to the stated final maturity; 3. Other obligations, the principal of and interest of which are unconditionally guaranteed or insured by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities, not to exceed two years to the stated final maturity; 4. Obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent, not to exceed three years to the stated final maturity; 5 Fully insured or collateralized certificates of deposit or share certificates issued by state and national banks or credit unions doing business in Texas, not to exceed one year to the stated final maturity that are: a. Guaranteed or insured by the Federal Deposit Insurance Corporation or thethe National Credit Union Association, or other federal agency, or successors; or b. Collateralized at 102% in accordance with this Policy (Section XI). 6. Fully collateralized direct repurchase agreements having a defined termination date, collateralized in accordance with this Policy, safe -kept with an independent third party selected or approved by the City, with an executed master repurchase agreement, and placed through a primary government securities dealer, as defined by the Federal Reserve, or a bank doing business in Texas, not to exceed one year to stated maturity; 7. Constant dollar Investment Pools as defined and regulated by the Act. 8. Commercial paper rated not less than A1/P1 or its equivalent by two nationally recognized rating agencies and not to exceed 180 days to stated final maturity. 9. AAA- rated, SEC registered money market funds. 10. FDIC insured brokered certificate of deposit securities from banks in any US state, delivered versus payment to the City's safekeeping depository, not to exceed one year to maturity. Before purchase the Investment Officer or adviser must verify the FDIC status of the bank on www.2fdic.gov.idasp/main bankfind /asp to assure that the bank is FDIC insured. XI. COLLATERALIZATION Pledged Collateral Collateralization is required on time and demand deposits. In order to anticipate market changes and provide a level of security for all funds, the collateral ization margin level will be maintained ay a minimum of 102% of deposits plus accrued. The counter party shall be made contractually liable for monitoring and maintaining the collateral and required margins at all times Collateral shall be priced at least monthly. City of San Marcos Investment Policy Page 4