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1 E. Commercial Paper <br /> le Commercial paper issued by United States corporations or their Canadian subsidiaries that <br /> is rated in the highest quality category by at least two nationally recognized rating agencies <br /> tand matures in 270 days or less. <br /> Time Deposits <br /> IF. <br /> Time deposits that are fully insured by the Federal Deposit Insurance Corporation or <br /> bankers acceptances of United States banks. <br /> 8.1 Speculative Investments <br /> I <br /> The Utilities shall not purchase investments that, at the time of purchase, can not be held <br /> to maturity. All investments shall be purchased with the intent to hold until maturity. <br /> This section shall not be construed to restrict the sale of investments prior to maturity <br /> which may be in the best interest of the Utilities. <br /> 8.2 Further Restrictions <br /> IThe Utilities shall not invest in Guaranteed Investment Contracts or Reverse Repurchase <br /> Agreements. <br /> II. <br /> 9.0 Collateralization <br /> 1 Elk River Municipal Utilities will follow Minnesota statutes regarding the use of collateral <br /> requirements. In order to anticipate market changes and provide a level of security for all funds, <br /> Ithe collateralization level will be at least ten percent more than the amount of deposit plus accrued <br /> interest at the close of the business day. To the extent that funds deposited are in excess of <br /> Iavailable federal deposit insurance, the government entity shall require the financial institution to <br /> furnish collateral security. <br /> All collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or <br /> in an account at a trust department of a commercial bank or other financial institution that is not <br /> Iowned or controlled by the financial institution furnishing the collateral. The selection shall be <br /> approved by Elk River Municipal Utilities. <br /> I <br /> Assignment <br /> 1111) Any collateral pledged shall be accompanied by a written assignment to the government entity <br /> from the financial institution. The written assignment shall recite that, upon default, the <br /> Ifinancial institution shall release to the government entity on demand, free of exchange or any <br /> 5 <br />