4.1. ERMUSR 05-11-2010 - Laserfiche WebLink

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Minnesota Statutes § 11 ~A.04, Subd 9. All investments must be placed with brokers whose office is in the State of Minnesota. No investments may be made with aut of state brokers. ~, 0 A~~a~~ze ~~d ~'~i~~b~e Ives~~ne~~~ Investment instruments authorized and permitted by this policy are as follows; ~.1 Repurchase A egr ements -Repurchase agreements consisting of collateral allowable in Section 11 ~A.04. S.2 United States Securities -Governmental bonds, notes, bills, mortgages excluding high~risl~ mortgage~backed securities}, and other securities, which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress. High risk mortgage~backed securities which are excluded from investment options for the utility) are deftned as follows: A. Interestmonly or principal~only mortgage~backed securities; and, ~. Any mortgage derivative security that: 1.} Has an expected average life greater than ten years; 2.} Has an expected average life that: C. will extend by more than four years as the result of an immediate and sustained parallel shift in the yield curve of plus 300 basis points; or I). will shorten by mare than six years as the result of an immediate and sustained parallel shift in the yield curve of minus 30o basis points; or E. will have an estimated change in price of more than 17 percent as the result of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points. s.3 Minnesota Joint Powers Investment Trust ~-Agreements or Contracts for 1 }shares of a Minnesota point powers Investment trust whose investments are restricted to securities authorized for investment by the government entity, and 2} shares of an investment company registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, as long as the investment company's fund receives the highest credit rating and is rated in one of the two highest risk rating categories by at least one nationally recognized statistical rating organization and is Invested in f nancial instruments with a final maturity of no longer than 13 months.