Laserfiche WebLink
Upon approval for participation in one or more additional investment pools the <br />Treasury investment staff shall thereafter on a regular and continuing basis <br />investigate and reconfirm the pool's compliance with items listed above and shall <br />monitor the pool's performance reports. <br />11.0 COLLATERALIZATION/SECURITY FOR DEPOSIT OF PUBLIC FUNDS <br />Money must be deposited in state or national banks, state or federal savings associations <br />or state or federal credit unions in the State of California. It may be in inactive deposits, <br />active deposits or interest-bearing active deposits. The deposits cannot exceed the <br />amount of the bank's or savings and loan's paid up capital and surplus. <br />The bank or savings and loan must secure the active and inactive deposits with eligible <br />securities having a market value of one -hundred, ten percent (110%) of the total amount of <br />the deposits. State law also allows as an eligible security, first trust deeds having a value <br />of one -hundred, fifty percent (150%) of the total amount of the deposits. A third class of <br />collateral is letters of credit drawn on the Federal Home Loan Bank (FHLB). <br />The Treasurer may waive, at his discretion, security for that portion of a deposit which is <br />insured pursuant to federal law. Currently, the first two -hundred, fifty -thousand dollars <br />($250,000) of a deposit is federally insured. It is to the City's advantage to waive this <br />collateral requirement for the first $250,000 because we receive a higher interest rate. <br />12.0 SAFEKEEPING AND CUSTODY <br />14.1 Perfected Interest and Delivery versus Payment <br />In accordance with California Government Code Section 53601, to protect against <br />potential losses caused by collapse of individual securities dealers, all securities <br />owned by the City except securities used as collateral for repurchase agreements, <br />shall be kept in safekeeping with 'perfected interest" by the City's custodial bank or <br />a third party bank trust department, acting as agent for the City under the terms of a <br />custody agreement executed by the bank and by the City. All securities, excepting <br />investments which are not deliverable (such as LAIF, direct time certificates of <br />deposit, and money market mutual funds), will be received and delivered using <br />standard `delivery versus payment': <br />b # Z�&9IA[ft�_,N d[a]L1 <br />The purpose of. diversification is to reduce overall portfolio risk while attaining market rates <br />of return and to enable the City to meet all anticipated cash requirements. The investment <br />portfolio shall consist of various types of securities approved by state statute and this <br />Statement of Investments Policy. Investments shall vary in issuers, asset classes, <br />industries and maturities to meet City's financial obligations. Diversifying the investment <br />portfolio will help mitigate the loss of funds as a result of failure of any one issuer. <br />City of Santa - Annual p� July 1, 2018 - <br />Statement of Investment Policy 5 C b1� 2 June 30, 2019 <br />