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Financial Management Policies Page 15 C. 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 under the Federal Securities Act of 1933, as long as the investment company’s fund receives the highest 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. D. State and Local Securities State and local government obligations as follows: 1. any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; and 2. any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and, 3. a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating service. E. 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. F.Time Deposits Time deposits that are fully insured by the Federal Deposit Insurance Corporation. Bankers acceptances of United States banks. G. Money Market Accounts Money market funds may be held with next day withdrawal capacity to provide for daily liquidity requirements. The 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 five 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 will 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 percent more than the amount on deposit plus accrued interest at the close of the business day. To the extent that funds deposited are more than 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 of Elk River. 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 Page 58 of 294