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(3)Reverserepurchaseagreementsor securities lendingagreementsmaybeutilizedonlywhenallofthe <br />followingconditionsaremet: <br />(A)Thesecuritytobe sold using a reverserepurchaseagreementorsecuritieslendingagreementhasbeen <br />ownedandfullypaidforbythelocalagencyfor a minimumof30dayspriortosale. <br />(B)Thetotalofallreverserepurchaseagreementsandsecuritieslendingagreementsoninvestments <br />ownedbythelocalagencydoesnot exceed 20percentof thebasevalueoftheportfolio. <br />(C)Theagreementdoesnot exceed a termof92days,unlesstheagreementincludes a writtencodicil <br />guaranteeing a minimumearningorspreadfortheentireperiodbetweenthe sale of a security using a <br />reverserepurchaseagreementorsecuritieslendingagreementandthefinalmaturitydateofthesame <br />security. <br />(D)Fundsobtainedorfundswithinthepoolofanequivalentamounttothatobtainedfromselling a security <br />to a counterpartyusing a reverserepurchaseagreementorsecuritieslendingagreementshallnotbeused <br />topurchaseanother <br />security with a maturitylongerthan92daysfromtheinitialsettlementdateofthereverserepurchase <br />agreementor securities lendingagreement,unlessthereverserepurchaseagreementorsecuritieslending <br />agreementincludes a writtencodicilguaranteeing a minimumearningorspreadfortheentireperiod <br />betweenthesaleof a securityusing a reverserepurchaseagreementorsecuritieslendingagreementand <br />thefinalmaturitydateofthesamesecurity. <br />(4)(A)Investmentsinreverserepurchaseagreements,securitieslendingagreements,orsimilar <br />investmentsinwhichthelocalagencysells securities priortopurchasewith a simultaneousagreementto <br />repurchasethesecuritymaybemadeonlyuponpriorapprovalofthegoverningbodyofthelocalagency <br />andshallbemadeonlywithprimarydealersoftheFederalReserveBankofNewYorkorwith a nationallyor <br />state-charteredbankthathasorhashad a significantbankingrelationshipwith a localagency. <br />(B)Forpurposesofthischapter,“significantbankingrelationship”meansanyofthefollowingactivitiesof a <br />bank: <br />(i)Involvementinthecreation,sale,purchase,orretirementof a localagency’sbonds,warrants,notes,or <br />otherevidenceofindebtedness. <br />(ii)Financingof a localagency’sactivities. <br />(iii)Acceptanceof a localagency’s securities orfundsasdeposits. <br />(5)(A)“Repurchaseagreement”means a purchaseof securities bythelocalagencypursuanttoan <br />agreementbywhichthe counterpartysellerwillrepurchasethesecuritiesonorbefore a specifieddateand <br />for a specified amountandthecounterpartywilldelivertheunderlyingsecuritiestothelocalagencybybook <br />entry,physicaldelivery,orbythird-partycustodialagreement.Thetransferofunderlying securities tothe <br />counterpartybank’scustomerbook-entryaccountmaybeusedforbook-entrydelivery. <br />(B)“Securities,”forpurposesofrepurchaseunderthissubdivision,means securities ofthesame issuer, <br />description,issuedate,andmaturity. <br />(C)“Reverserepurchaseagreement”means a saleof securities bythelocalagencypursuanttoan <br />agreementbywhichthelocalagencywillrepurchasethesecuritiesonorbefore a specifieddateand <br />includesothercomparableagreements. <br />(D)“Securitieslendingagreement”meansanagreementunderwhich a localagencyagreestotransfer <br />securitiesto a borrowerwho,inturn,agreestoprovidecollateraltothelocalagency.Duringthetermofthe <br />agreement,boththesecuritiesandthecollateralareheldby a thirdparty.Attheconclusionofthe <br />agreement,thesecuritiesaretransferredbacktothelocalagencyinreturnforthecollateral. <br />(E)Forpurposesofthissection,thebasevalueofthelocalagency’spoolportfolioshallbethatdollar <br />amountobtainedbytotalingallcashbalancesplacedinthepoolbyallpoolparticipants,excludingany <br />*´«¸ ΐǾ ΑΏΐ9- <br />C¨³¸ ®¥ 3 ­³  ȃ !­­´ « <br />0 ¦¤ 32 <br />3³ ³¤¬¤­³ ®¥ )­µ¤²³¬¤­³ 0®«¨¢¸*´­¤ ΒΏǾ ΑΏ20 <br /> <br />