Laserfiche WebLink
<br /> <br /> <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 />of the business day. To the extent that funds deposited are in excess of available federal deposit <br />insurance, the government entity shall require the financial institution to furnish collateral security. <br />All collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in <br />an account at a trust department of a commercial bank or other financial institution that is not <br />owned or controlled by the financial institution furnishing the collateral. The selection shall be <br />approved by the City of Elk River. <br /> <br />Any collateral pledged shall be accompanied by a written assignment to the government entity from <br />the financial institution. The written assignment shall recite that, upon default, the financial <br />institution shall release to the government entity on demand, free of exchange or any other charges, <br />the collateral pledged. Interest earned on assigned collateral will be remitted to the financial <br />institution so long as it is not in default. The government entity may sell the collateral to recover the <br />amount due. Any surplus from the sale of collateral shall be payable to the financial institution, its <br />assigns, or both. <br /> <br />Investments may be held in safekeeping with: <br /> <br />1.Any Federal Reserve Bank; <br /> <br />2.Any bank authorized under the laws of the United States or any state to exercise corporate <br />trust powers, including, but not limited to, the bank from which the investment is purchased; <br /> <br />3.A primary reporting dealer in United States government securities to the Federal Reserve <br />Bank of New York; or <br /> <br />4.A securities broker/dealer having its principal executive office in Minnesota, licensed and <br />registered pursuant to chapter 80A, or an affiliate of it, regulated by the Securities and <br />Exchange Commission; provided that the government entity’s ownership of all securities is <br />evidenced by written acknowledgments identifying the securities by the names of the issuers, <br />maturity dates, interest rates, CUSIP number, or other distinguishing marks. <br /> <br />The city will minimize investment custodial credit risk by permitting brokers that obtained <br />investments for the city to hold them only to the extent there is SIPC and excess SIPC coverage <br />available. Securities purchased that exceed available SIPC coverage shall be transferred to the city’s <br />custodian. <br /> <br />The City of Elk River will diversify its investments by security type and institution. In establishing <br />specific diversification strategies, the following general policies and constraints shall apply: <br /> <br /> <br />A.Portfolio maturities shall be staggered to avoid undue concentration of assets at a specific <br />maturity sector, with one broker-dealer or financial institution, or any one type of <br />instrument. The maturities selected shall provide for stability of income and reasonable <br />liquidity. <br /> <br />Financial Management Policies Page 6 <br /> <br />