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<br /> <br /> <br /> <br />ii.will shorten by more than six years as the result of an immediate and <br />sustained parallel shift in the yield curve of minus 300 basis points; <br />or <br /> <br />iii.will have an estimated change in price of more than 17 percent as the <br />result of an immediate and sustained parallel shift in the yield curve <br />of plus or minus 300 basis points. <br /> <br />C. Minnesota Joint Powers Investment Trust <br />Agreements or contracts for shares of a Minnesota joint powers investment trust whose <br />investments are restricted to securities authorized for investment by the government entity <br />and shares of an investment company registered under the Federal Investment Company <br />Act of 1940, whose shares are registered under the Federal Securities Act of 1933, as long <br />as the investment company’s fund receives the highest credit rating and is rated in one of <br />the two highest risk rating categories by at least one nationally recognized statistical rating <br />organization and is invested in financial instruments with a final maturity of no longer than <br />13 months. <br /> <br />D. State and Local Securities <br />State and local government obligations as follows: <br /> <br />1.any security which is a general obligation of any state or local government with <br />taxing powers which is rated “A” or better by a national bond rating service; <br /> <br />2.any security which is a revenue obligation of any state or local government with <br />taxing powers which is rated “AA” or better by a national bond rating service; <br />and, <br /> <br />3.a general obligation of the Minnesota Housing Finance Agency which is a moral <br />obligation of the State of Minnesota and is rated “A” or better by a national <br />bond rating service. <br /> <br />E. Commercial Paper <br />Commercial paper issued by United States corporations or their Canadian subsidiaries that <br />is rated in the highest quality category (e.g., A-1, P-1, F-1,or D-1 or higher) by at least two <br />nationally recognized rating agencies and matures in 270 days or less. <br /> <br />F. Time Deposits <br />Time deposits that are fully insured by the Federal Deposit Insurance Corporation. <br />Bankers acceptances of United States banks. <br /> <br />The city shall not purchase investments that, at the time of purchase, cannot be held to maturity. All <br />investments shall be purchased with the intent to hold until maturity. This section shall not be <br />construed to restrict the sale of investments prior to maturity which may be in the best interest of <br />the city. <br /> <br />The city shall not invest in GICs or Reverse Repurchase Agreements. <br /> <br />The City of Elk River will follow Minnesota statutes regarding the use of collateral requirements. In <br />order to anticipate market changes and provide a level of security for all funds, the collateralization <br />level will be at least ten percent more than the amount on deposit plus accrued interest at the close <br />Financial Management Policies Page 5 <br /> <br />