Laserfiche WebLink
<br />that conduct business within this jurisdiction, and they shall further disclose any large personal <br />financial/investment positions that could be related to the performance of the City of Elk River's <br />portfolio. <br /> <br />7.0 Authorized Financial Dealers and Institutions <br />The Finance Director will maintain a list of financial institutions authorized to provide investment <br />services. In addition, a list will be maintained of approved security broker/ dealers selected by credit <br />worthiness, who maintain an office in the State of Minnesota. These may include "primary dealers" <br />or regional dealers that qualify under Securities & Exchange Commission Rule 15c3-1 (uniform net <br />capital rule). All brokers doing business with the City shall have a Broker Certification form on flie <br />with the Finance Director in accordance with Minnesota Statutes ~118A.04, Subd 9. All investments <br />must be placed with brokers whose office is in the State of Minnesota. No investments may be made <br />with out of state brokers. <br /> <br />8.0 Authorized and Suitable Investments <br />Investment instruments authorized and permitted by this policy are as follows: <br /> <br />A. Repurchase Agreements <br />Repurchase agreements consisting of collateral allowable in Section 118A.04. <br /> <br />B. United States Securities <br /> <br />Governmental bonds, notes, bills, mortgages (excluding high-risk mortgage-backed <br /> <br />securities), and other securities, which are direct obligations or are guaranteed or insured <br /> <br />issues of the United States, its agencies, its instrumentalities, or organizations created by an <br /> <br />act of Congress. <br /> <br />High risk mortgage-backed securities are as follows: <br /> <br />1.) interest-only or principal-only mortgage-backed securities; or, <br /> <br />2.) any mortgage derivative security that: <br /> <br />a) has an expected average life greater than ten years; <br /> <br />b) has an expected average life that: <br /> <br />i) will extend by more than four years as the result of an immediate <br /> <br />and sustained parallel shift in the yield curve of plus 300 basis <br /> <br />points; or <br /> <br />C: \Documents and Settings \ tallard\Local Settings \ Temporary Internet Files \ OLKF\Investrnent Policy Update. doc <br />