Res 2012-023 - Laserfiche WebLink

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primary government securities dealer, as defined by the Federal Reserve, or a bank doing business in Texas, not to exceed 90 days to the stated maturity; Flexible repurchase agreements (flex repos) are authorized for investment of bond proceeds, if 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 primary government securities dealer, as defined by the Federal Reserve The term of the flex repo may exceed two years but not exceed the anticipated expenditure schedule of the bond proceeds and no party involved with the issuance of the debt shall be involved with the funds reinvestment. 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. 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 Safekeeping function will be provided by the City's banking services depository. In order to ensure City of San Marcos Investment Policy Page 5