6.3 ERMUSR 09-13-2005 - Laserfiche WebLink

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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 I institution, its assigns, or both. 10.0 Safekeeping and Custody IInvestments shall be held in safekeeping with: 1.) Any Federal Reserve Bank; I2.) 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 Ipurchased; 3.) A primary reporting dealer in United States government securities to the Federal Reserve IBank of New York; or 4.) A securities broker/dealer having its principal executive office in Minnesota, licensed Ipursuant to chapter 80A, or an affiliate of it, regulated by the Securities and Exchange Commission; provided that the government entity's ownership of all securities is evidenced Iby written acknowledgments identifying the securities by the names of the issuers, maturity dates, interest rates, CUSIP number, or other distinguishing marks. IP 11.0 Diversification/Maturities I Elk River Municipal Utilities will diversify its investments by security type and institution. In Iestablishing specific diversification strategies, the following general policies and constraints shall apply: I Portfolio maturities shall be staggered to avoid undue concentration of assets at a specific Imaturity sector, with one broker-dealer or financial institution, or any one type of instrument. The maturities selected shall provide for stability of income and reasonable I liquidity. 1 12.0 Internal Control The Finance Director shall establish an annual process of independent review by an external ill auditor. This review will provide internal control by assuring compliance with policies and procedures. I I6