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<br />I <br /> <br />I <br /> <br />I <br /> <br />IV. PURCHASING AND INVESTMENT <br /> <br />The Policy requires establishment and approval of an authorized broker/dealer list with whom the <br />City may transact business. TIll.': broker/dealer questionnaire helps provide the following evaluation; <br /> <br />- financial condition. strength and capability to fulfill commitments. <br />- Overall reputation with other broker/dealers and investors, <br />- Regulatory ~1atus of the broker/dealer, <br />- Background and expertise of the mdividual representative. <br /> <br />The Investment Adviser will contact an appropriate number of broker/dealers for offers based on <br />market evaluation, Investment Policy and collateral limitations, and cash flow lnformation given <br />The following wiI1 be determined with the broker/dealer: <br />Settlement basis - i ,e. cash (same day), regular (next day), or whf!n-issued (issue date) if <br />a new agency issue. <br />- Amount available for investment. <br />- Type of security to be purchased excluded. <br />- Targeted maturity, or maturity range, <br /> <br />If choosing an investment pool as the preferred investment vehicle, the Council resolution and <br />authQrized individuals (PIN) resolutions must be in place prior to purchase and at any reasonable <br />time thereafter. All pool transactions are ini1Jated and controlled by City Investment Oflicer(s) <br /> <br />An investment purchases will be executed using the competitive bidding proeess. A minimum of <br />three competitive offers on the purchase of every security will be obtamed. All investrn ent purchases <br />will be executed in compliance with the Internal Revenue Service's Fair Market Rules. <br /> <br />Before concluding the transaction, the lnvestment Adviser verifies the foHO\ving, <br /> <br />- The security meets all cash flow and Policy criteria, <br />The security structure including any imbedded options such as call provisions or coupon <br />adj ustrn ents. <br />- Yield calculations and settlement amounts. <br />- Total purchase cost (including accrued interest). <br /> <br />And, <br /> <br />Advises the successful provider that their offering has been selected for purchase. <br />- Notifies any unsuccessful broker/dealers, Best price may be disclosed. <br /> <br />City of San Marcos Investment Policy <br /> <br />Page 41 <br />