RES 14674 - Laserfiche WebLink

EXHIBIT A COLLATERALIZATION Collateralization will be required on active and inactive deposits in accordance with Government Code Section 53651, 53651.2, and 53652, which set forth the eligible securities and the required value of the securities to collateralize these deposits. Whenever possible, the City shall request that U.S. Treasury and Government securities be used as collateral. Repurchase agreements will be collateralized 102% with securities of the U.S. Government or its Agencies, marked to market daily. SAFEKEEPING AND CUSTODY Securities purchased from brokers/dealers will be held by a third party custodian designated by the Director of Finance and evidenced by safekeeping receipts. Securities do not literally have to be held in the name of the City but ownership is evidenced through safekeeping or custodial receipts and/or statements. TRUST AGREEMENTS The City shall direct the investment activities of trustees. Such direction shall be in keeping with the terms and conditions of its bond agreements, applicable law and policies set forth in this document. DIVERSIFICATION The City will diversify its instruments by security type and institution, meeting at least the minimum requirements as outlined in Government Code Section 53601. Current limits of the California Government Code: Banker's Acceptance 40% Code Section 53601 (g) Commercial Paper 25% Code Section 53601 (h) Negotiable Cert. of Deposits 30% Code Section 53601 (i) Medium-Term Corporate Notes 30% Code Section 53601 (k) Government Security Mutual Funds 20%. Code Section 53601 (I) MAXIMUM MATURITIES To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. The City may directly invest in securities maturing more than five years from the date of purchase if they are authorized by the City Council. After Council authorization, no waiting period is required before such an investment is made. The City may invest proceeds of bond issuances or certificates of participation for a term exceeding five years, provided the City Council authorizes such investments as part of the legal documents. 5