55D - RESO STATEMENT INVESTMENT POLICY

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" Sources: Sections 16340, 16429.1, 53601, 53601.8, 53635, 53635.2, 53635.8, and 53638. ° Municipal Utilities Districts have the author- ity under the Public Utilities Code Section 12871 to invest in certain securities not ad- dressed here. Section 53601 provides that the maximum tens of any Investment authorized under this section, unless otherwise stated, is rive years. However, the legislative body may grant express authority to make investments either specifically or as a part of an invest- ment program approved by the legislative body that exceeds this five yearmaturltylimit. Such approval must be issued no less than three months prior to the purchase of any se, curity exceeding the five-year maturity limit. Percentages apply to all portfolio Invest- ments regardless of source of funds. For instance, cash from a reverse repur- chase agreement would be subject to the restrictions. Reverse repurchase agreements or securi- lies lending agreements may exceed the 92 -day term if the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period be- tween the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity dates of the same security. " Reverse repurchase agreements must be made with primary dealers of the Federal Re - sere Bank of New York or with a nationally orstate chartered bank that has a significant relationship with the local agency. The local agency must have held the securities used for the agreements for at least 30 days. " "Mediumtemi notes" are defined in Section 53601 as "all corporate and depository lm stilution debt securities with a maximum re- ma)ning maturity of five years or less, issued by corporations organized and operating within the United States or by depository m- stitudons licensed by the United States or any state and operating within the United States" ` No more than 30 percent of the agency's o No more than 10 percent invested in any money may be in bankers' acceptances of any one commercial bank. one mutual fund. This limitation does not apply to money market mutual funds. ' "Select Agencies" are defined as a "city, a district, orotherlocal agency that doles] not pool money in deposits or investment with other local agencies, other than local agor cies that have the same governing body." ° Local agencies, other than counties are city and county, may purchase no more than 10 percent of the outstanding commercial pa- per of any single issuer. " Issuing witiomtion must be organized and operating within the U.S., have assets in ex- cess of $500 million, and debt other than commercial paper must be in a rating cat- egory of A° or its equivalent or higher by a nationally recognized statistical rating orga- nization, or the issuing corporation must be organized within the U.S. as a special pur- pose corpomdon, bust, or LLC, has program wide credit enhancements, and has com- mercial paper that is rated A-7" or higher, or the equivalent, by a nationally recognized statistical rating agency. "Other Agencies" are counties, a city and county, or other local agency "that pools moneym deposits orinvestments with other local agencies, including local agencies that have the same governing body." Local agencies that pool exclusively with other lo- cal agencies that have the same governing body must adhere to the limits set for "Se- lect Agencies,"above. No more than 30 percent of the agency's money may be in negotiable certificates of deposit that are authorized under Section 53601(1). K No more than 30 percent of the agencys moneymaybe irrvestedin deposits, including certificates of depositthrough a placement service (excludes negotiable certificates of deposit authorizedunderSection 53601(1)). ° Amutual fund must receive the highest rank- ing by not less than two nationally recog- nized rating agencies or the fund must retain an investment advisor who is registered with the SEC (or exempt from registration), has as- sets under management in excess of $500 million, and has at least five years' experi- ence investing in instruments authorized by Sections 53601 and 53635. ° A money market mutual fund must receive the highest ranking by not less than two nationally recognized statistical rating or- ganizations or retain an investment advisor registered with the SEC or exempt from registration and who has not less than five years' experience investing in money market instruments with assets undermanagement in excess of $500 million. " Issuer must be rated in a rating category of A" or its equivalent or better as provided by a nationallyrecognized statistical rating orga- nization. s Ajoint powers authority pool must retain an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 mit- lion, and has at least five years' expedence investing in instruments authorized by Seo- tion 53601, subdivisions (a) to (o). ' Local entities can deposit between $200 million and $10 billion into the Voluntary Investment Program Pond, upon approval by their governing bodies. Deposits In the fund will be Invested in the Pooled Money Investment Account. ° Only those obligations issued oruncondition- ally guaranteed by the International Bank for Reconsuuction and Development (IBRD), International Finance Corporation (IFC), and Inter -American Development Bank (IADB). LOCAL AGENCY INVESTMENT GUIDELINES