4.9. SR 06-17-2019 - Laserfiche WebLink

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an investment transaction except as provided under the terms of this policy and the procedures established by the finance director. The finance director shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the investment program or which could reasonably cause others to question or doubt their ability to make impartial investment decisions. Employees and investment officials shall disclose to the finance director any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the city The finance director will maintain a list of financial institutions authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by credit worthiness, who maintain an office in the State of Minnesota. that qualify under Securities & Exchange Commission Rule 15c3-1 (uniform net capital rule). All brokers doing business with the city shall have a Broker Certification form on file with the finance director in accordance with Minnesota Statutes §118A.04, Subd 9. All investments must be placed with brokers whose office is in the State of Minnesota. No investments may be made with out of state brokers. Investment instruments authorized and permitted by this policy are as follows: 1. Repurchase Agreements consisting of collateral allowable in Section 118A.04. 2. United States Securities a. Governmental bonds, notes, bills, mortgages (excluding high-risk mortgage-backed securities), and other securities, which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an Act of Congress. b. High risk mortgage-backed securities are as follows: i. interest-only or principal-only mortgage-backed securities; or, ii. any mortgage derivative security that: has an expected average life greater than 10 years; has an expected average life that will: o extend by more than four years as the result of an immediate and sustained parallel shift in the yield curve of plus 300 basis points; or o shorten by more than six years as the result of an immediate and sustained parallel shift in the yield curve of minus 300 basis points; or o have an estimated change in price of more than 17% as the result of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points. 3. Minnesota Joint Powers Investment Trust Agreements or contracts for shares of a Minnesota joint powers investment trust whose investments are restricted to securities authorized for investment by the government entity and shares of an investment company registered under the Federal Investment Company Act of 1940, whose shares are registered credit rating and is rated in one of the two highest risk rating categories by at least one nationally recognized statistical rating organization and is invested in financial instruments with a final maturity of no longer than 13 months. 4. State and Local Securities, as follows a. any security which is a general obligation of any state or local government with taxing powers Financial Management Policies Page 3