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APPENDIX III. <br />GLOSSARY OF CITY OF SANTA ANA <br />INVESTMENT POLICY & RELATED CALIFORNIA CODE TERMS <br />AGENCIES: Federal agency securities and/or Government Sponsored Enterprises (GSE). [Referenced <br />pages: 9, 10, 15, 17, 29] <br />ASSET- BACKED SECURITES (ABS): securities supported by pools of installment loans or leases or by <br />pools of revolving lines of credit. [Referenced pages: 13] <br />ASSOCIATION OF PUBLIC TREASURERS OF THE UNITED STATES AND CANADA: The Association <br />of Public Treasurers of the United States and Canada (APTUS&C), formerly called the Municipal Treasurers <br />Association of the United States and Canada (MTA US & C) was founded in 1965 and represents public <br />treasury and finance officials in local, county, and state/provincial governments throughout North America. <br />The Association provides educational seminars and conferences, publications, policy and legislative <br />information, and technical assistance to members. [Referenced pages: 6, 21] <br />BENEFICIAL SHARES/MONEY MARKET SHARES: in US securities law, a beneficial owner (as distinct <br />from a "nominee owner," "registered owner,' or "record holder") of a security includes any person who, <br />directly or indirectly, has or shares voting or investment power also known as money market shares. <br />[Referenced pages: 12, 18] <br />BENCHMARK: A comparative base for measuring the- performance or risk tolerance of the investment <br />portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of <br />the portfolio's investments. [Referenced pages: 5, 191 <br />BILLS OF EXCHANGE/BANKERS ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or <br />trust company. The accepting institution guarantees payment of the bill, as well as the issuer. These <br />instruments are accepted as payment by banks engaged in financing trade. For example, a U.S. <br />corporation planning to purchase goods from a foreign vendor will ask its bank to issue a letter of credit on <br />behalf of the corporation. The letter of credit will allow the foreign vendor to draw a draft on the U.S. <br />corporation's bank to pay for the merchandise. Upon receipt of the letter and the draft, the foreign vendor <br />will ship the merchandise and present the draft at its bank, which allows the vendor to receive payment for <br />the merchandise sold. The vendor's foreign bank forwards the draft to the U.S. bank, at which point the <br />draft is "accepted" as an obligation that the purchaser's U.S. bank must pay at a specified maturity date. <br />The U.S. bank may keep the acceptance or may sell it to a third party investor. Bankers' acceptances are <br />sold at a discount and are considered fairly safe investment instruments because both the purchaser's bank <br />and the initiating corporation are obligated to pay the holder at maturity. [Referenced pages: 9, 17, 29] <br />BOOK VALUE: The value at which a debt security is shown on the holder's balance sheet. Book value is <br />acquisition cost less amortization of premium or plus accretion of discount. [Referenced pages: 4, 12, 19] <br />BOOK ENTRY: An electronic system of accountability, custody, transfer, and settlement of securities. <br />Book -entry systems allow rapid and accurate transfers of securities with simultaneous cash settlement. <br />[Referenced pages: 29, 31, 33] <br />BROKER: A broker brings buyers and sellers together for a commission. [Referenced pages: 10, 23] <br />City of Santa Annual July 1, 2018 <br />Statement of Investment Policy 59b-45 June 30, 2019 <br />