4.1. ERMUSR 05-11-2010 - Laserfiche WebLink

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$.4 Mate and Local Securities--Mate and local government obligations as follows: A. Any security which is a general obligation of any state or local government with taxing powers which is rated "A" or better by a national bond rating service; B. Any security which is a revenue obligation of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; and, C, A general obligation of the Minnesota I~ousing Finance Agency which is a moral obligation of the Mate of Minnesota and is rated "A" or better by a national band rating agency, ~.5 Commercial Paper ~-Commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the highest quality category (e.g., A~1, P~1, F~l, or D~ 1 or higher by at least two nationally recognized rating agencies and matures in Z70 days or less, s.6 Time Deposits -Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of United States banks. ~.7 Speculative Investments -The Utilities shall not purchase investments that, at the time of purchase, can not be held to maturity, All investments shall be purchased with the intent to hold until maturity. This section sha11 not be construed to restrict the sale of investments prior to maturity which may be in the best interest of the Utilities. ~.~ Further Restrictions -The Utilities shall not invest in Guaranteed Investment Contracts or Reverse Repurchase Agreements. 9a0 C'ol~~~e~r~l~~ao~ Elk River Municipal Utilities will follow Minnesota statutes regarding the use of collateral requirements. In order to anticipate market changes and provide a level of security for all funds, the collateralizationievel will be at least ten percent more than the amount of deposit plus accrued interest at the close of the business day. To the extent that funds deposited are in excess of available federal deposit insurance, the government entity shall require the financial institution to furnish collateral security. All collateral shall be placed in safekeeping in a restricted account at a Federal Reserve dank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the fnancial institution furnishing the collateral. The selection shall be approved by Elk River Municipal Utilities. 9.1 Assignment -^Any collateral pledged shall be accompanied by a ~rrltten assignment to the government entity from the financial institution. The written assignment shall recite that, upon default, the financial institution shall release to the government entity on demand, free of exchange or any other charges, the collateral pledged. Interest earned on assigned collateral will be remitted to the financial institution so long as it is not in default. The government entity may sell the collateral to recover the amount 4