Res 2012-023 - Laserfiche WebLink

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The custodian shall provide the required periodic reports directly to the City. Owned Collateral Repurchase agreements shall be collateralized to 102% of principal and accrued interest. The counter party shall be made contractually liable for monitoring and maintaining the collateral and required margins at all times. Collateral shall be priced daily. The Custodian shall provide the required periodic reports directly to the City. Authorized Collateral Collateral shall be limited to the following. - Obligations of the US Government, its agencies and instrumentalities to include mortgage- backed securities which pass the bank test. - 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. Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (report or receipt) must be supplied to the City and retained. The right of collateral substitution is granted with prior City approval. XII. SAFEKEEPING AND CUSTODY The safekeeping function will be provided by the City's banking services depository In order to ensure protection for City owned securities, the City requires delivery versus payment procedures for all transactions, except pools, money market funds and time deposits, which have no book entry delivery. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery versus payment (DVP) basis to the City's depository or City approved third party custodian. Securities will be held by a third party custodian approved by the Investment Officer(s) and evidenced by proof of ownership (original safekeeping receipts) XIII. DIVERSIFICATION Diversification of the overall portfolio will be maintained in accordance with the following diversification limits. Security Type US Government Treasury Obligations US Government Agencies and Instrumentalities Municipal Instruments Certificates of Deposit Repurchase Agreements Constant dollar investment pools Commercial Paper Limit per commercial paper issuer Money Market Mutual Fund XIV. INTERNAL CONTROLS Maximum % of Portfolio 90% 80% 30% 25% 25% 50% 25% 10% 50% The Investment Officer(s) shall establish a system of written internal controls that will be reviewed annually with the City or independent auditor along with quarterly investment reports. The controls will be City of San Marcos Investment Policy Page 5