6.3. SR 03-11-2013 - Laserfiche WebLink

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c. a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated "A" or better by a national bond rating service. 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-1, or D-1 or higher) by at least two nationally- recognized rating agencies and matures in 270 days or less. 6. Time Deposits Time deposits that are fully insured by the Federal Deposit Insurance Corporation. Bankers acceptances of United States banks. The city shall not purchase investments that, at the time of purchase, cannot be held to maturity. All investments shall be purchased with the intent to hold until maturity. This section shall not be construed to restrict the sale of investments prior to maturity which may be in the best interest of the city. The city shall not invest in Guaranteed Investment Contracts or Reverse Repurchase Agreements. The city shall maintain collateral requirements per Minnesota Statutes. To anticipate market changes and provide a level of security for all funds, the collateralization level will be at least 10% more than the amount on 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 Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection shall be approved by the City of Elk River. Any collateral pledged shall be accompanied by a written 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 due. Any surplus from the sale of collateral shall be payable to the financial institution,its assigns, or both. Investments may be held in safekeeping with: 1. Any Federal Reserve Bank; 2. Any bank authorized under the laws of the United States or any state to exercise corporate trust powers,including, but not limited to,the bank from which the investment is purchased; 3. A primary reporting dealer in United States government securities to the Federal Reserve Bank of New York; or Financial Management Policies Page 5