Res 2012-023 - Laserfiche WebLink

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the safety of public capital at risk. Purchases of securities shall be limited to authorized broker /dealers and institutions approved by the Investment Committee (Section VI). The Investment Officer(s) will maintain this list of authorized dealers and institutions. This list may include brokers and "primary' or regional dealers that qualify under Securities and Exchange Commission Rule 15C3 -1 (uniform net capital rule). Authorized dealers and institutions shall provide proof of Financial Institutions Regulatory Authority (FINRA) certification, an annual audited financial statement, and a completed broker /dealer questionnaire. Each bank pool dealer and institution with which the City transacts business will be provided a copy of this Policy to assure that they are familiar with the goals and obiectives of the investment program. The entity will be required to return a signed copy of the Certification by Business Organization substantially in the form provided as Appendix B. Additional financial institutions may be used for time or demand deposits designed for investment purposes (i.e. not as the primary depository of the City). These institutions may be approved by the Investment Officer(s) on an ongoing basis to accommodate the need for timely action. Action by the Investment Committee is not required before use of such institutions. Each financial institution will provide policy certification and execute a depository agreement. The City may utilize third -party rating agencies in order to assess the overall financial strength of potential depositories. The depository, or its brokerage subsidiary, from which the City obtains banking services including safe- keeping, will not be used for brokerage services in order to perfect ownership on delivery versus payment settlement. The bank may be used for time deposits but all time deposits will be bid competitively. 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 two 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 two 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 two 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 two years to the stated final maturity that are: a. Guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Association, or other federal agency, or successors; or b. Collateralized to 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 approved by the City, with an executed master repurchase agreement, and placed through a City of San Marcos Investment Policy Page 4