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be invested in the banker's acceptances of any one commercial bank pursuant <br />to this section. <br />E. Commercial paper of "prime" quality of the highest ranking or of the highest <br />letter and number rating as provided for by a Nationally Recognized Statistical <br />Rating Organization (NRSRO). The entity that issues the commercial paper <br />shall be organized and operating within the United States, as a general <br />corporation, shall have total assets in excess of five -hundred, million dollars <br />($500,000,000), and has debt other than commercial paper, if any, that is rated <br />"A" or higher by NRSRO. The entity is organized within the United States as a <br />special purpose corporation, trust, or limited liability company; has program wide <br />credit enhancements including, but not limited to: over -collateralization, letters of <br />credit, or a surety bond; has commercial paper that is rated "A-1" or higher, or <br />the equivalent, by an NRSRO Eligible commercial paper shall have a maximum <br />maturity of two hundred seventy (270) days or less. The City may purchase no <br />more than ten percent (10%) of the outstanding commercial paper of any single <br />corporate issue. Purchases of commercial paper may not exceed twenty-five <br />percent (25%) of the investment portfolio. <br />F. Repurchase Agreements. For purposes of this section, the term "repurchase <br />agreement' means a purchase of securities by the local agency pursuant to an <br />agreement by which the seller will repurchase the securities on or before a <br />specified date and for a specified amount and will deliver the underlying <br />securities to a third -party custodian. The City may invest in repurchase <br />agreements with primary dealers of the Federal Reserve with which the City has <br />entered into a Securities Industry and Financial Markets Association (SIFMA) <br />Master Repurchase Agreement (MRA) which specifies terms and conditions of <br />repurchase agreements. The market value of securities used as collateral for <br />repurchase agreements shall not be allowed to fall below one hundred two <br />percent (102%) of the value of the repurchase agreement and shall be adjusted <br />no less than quarterly by the tri -party custodial agent. The investments in <br />repurchase agreements shall be in compliance if the underlying securities are <br />brought back up to one hundred two percent (102%) no later than the next <br />business day. The underlying collateral shall be limited to United States <br />Government Treasury Bills, Notes, and Bonds, or obligations issued by a <br />Federal Agency or United States Government Sponsored Enterprises <br />obligations. Upon the written approval of the Executive Director for FMSA, <br />substituted securities may be pledged for collateral but shall consist only of <br />investments permitted within this investment policy with a maximum maturity of <br />five (5) years. If there is a default of the broker, the collateral securities can be <br />sold. Since the securities are valued daily, it is likely that the sale proceeds will <br />equal or exceed the value of the repurchase agreement amount. Purchases in <br />this category shall not exceed one (1) year or twenty percent (20%) of the cost <br />value of the investment portfolio. Retail repurchase agreements and reverse <br />agreements shall not be authorized for purchase. <br />City of Santa - Annual pagQe 10 July 1, 2018 - <br />Statement of Investment Policy 1'1 June 30, 2019 <br />