4.9. SR 06-17-2019 - Laserfiche WebLink

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b. any security which is a revenue obligation of any state or local government with taxing powers d, c. a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the 5. Commercial Paper Commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the highest quality category (e.g., A-1, P-1, F-1 or D-1 or higher) by at least two nationally recognized rating agencies and matures in 270 days or less. 6. Time Deposits a. Time deposits that are fully insured by the Federal Deposit Insurance Corporation. b. Bankers acceptances of United States banks. 7. Money Market Accounts Money market funds may be held with next day withdrawal capacity to provide for daily liquidity requirements. These money market funds must be rated one of the two highest rating categories by at least one nationally recognized statistical rating organization. The city shall not purchase investments that, at the time of purchase, cannot be held to maturity. All investments shall be purchased with the intent to hold until maturity. The maximum maturity will be 10 years with a total weighted average maturity of total investments not to exceed 5 years. This section shall not be construed to restrict the sale of investments prior to maturity which may be in the best interest of the city. The city shall not invest in GICs or Reverse Repurchase Agreements. The city shall follow Minnesota statutes regarding the use of collateral requirements. To anticipate market changes and provide a level of security for all funds, the collateralization level will be at least 10% more than the amount on deposit plus accrued interest at the close of the business day. To the extent that funds deposited are in excess of available federal deposit insurance, the city shall require the financial institution to furnish collateral security. All collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection shall be approved by the city. Any collateral pledged shall be accompanied by a written assignment to the city from the financial institution. The written assignment shall recite that, upon default, the financial institution shall release to the city on demand, free of exchange or any 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 city may sell the collateral to recover the amount due. Any surplus from the sale of collateral shall be payable to the financial institution, its assigns, or both. Investments may be held in safekeeping with: 1. Any Federal Reserve Bank; 2. 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 purchased; 3. A primary reporting dealer in US government securities to the Federal Reserve Bank of New York; or 4. A securities broker/dealer having its principal executive office in Minnesota, licensed and registered pursuant to chapter 80A, or an affiliate of it, regulated by the Securities and Exchange Commission; videnced by written acknowledgments identifying the securities by the names of the issuers, maturity dates, interest rates, CUSIP number, or other distinguishing marks. Financial Management Policies Page 4