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GOVERNMENT CODE
<br />SECTION
<br />53601.
<br />This section shall apply to a local agency that is a city, a district, or other local agency that does not pool
<br />money in deposits or investments with other local agencies, other than local agencies that have the same
<br />governing body. However, Section 53635 shall apply to all local agencies that pool money in deposits or
<br />investments with other local agencies that have separate governing bodies. The legislative body of a local
<br />agency having moneys in a sinking fund or moneys in its treasury not required for the immediate needs of
<br />the local agency may invest any portion of the moneys that it deems wise or expedient in those investments
<br />set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a
<br />negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local
<br />agency, including those purchased for the agency by financial advisers, consultants, or managers using the
<br />agency's funds, by book entry, physical delivery, or by third -party custodial agreement. The transfer of
<br />securities to the counterparty bank's customer book entry account may be used for book entry delivery.
<br />For purposes of this section, "counterparty' means the other party to the transaction. A counterparty bank's
<br />trust department or separate safekeeping department may be used for the physical delivery of the security if
<br />the security is held in the name of the local agency. Where this section specifies a percentage limitation for a
<br />particular category of investment, that percentage is applicable only at the date of purchase. Where this
<br />section does not specify a limitation on the term or remaining maturity at the time of the investment, no
<br />investment shall be made in any security, other than a security underlying a repurchase or reverse
<br />repurchase agreement or securities lending agreement authorized by this section, that at the time of the
<br />investment has a term remaining to maturity in excess of five years, unless the legislative body has granted
<br />express authority to make that investment either specifically or as a part of an investment program approved
<br />by the legislative body no less than three months prior to the investment:
<br />(a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue -
<br />producing property owned, controlled, or operated by the local agency or by a department, board, agency, or
<br />authority of the local agency.
<br />(b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith
<br />and credit of the United States are pledged for the payment of principal and interest.
<br />(c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of
<br />the revenues from a revenue -producing property owned, controlled, or operated by the state or by a
<br />department, board, agency, or authority of the state.
<br />(d) Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds
<br />payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by a
<br />state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
<br />(e) Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including
<br />bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated
<br />by the local agency, or by a department, board, agency, or authority of the local agency.
<br />(f) Federal agency or United States government -sponsored enterprise obligations, participations, or other
<br />instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or
<br />United States government -sponsored enterprises.
<br />(g) Bankers' acceptances otherwise known as bills of exchange or time drafts that are drawn on and
<br />accepted by a commercial bank. Purchases of bankers' acceptances shall not exceed 180 days' maturity or
<br />40 percent of the agency's moneys that may be invested pursuant to this section. However, no more than 30
<br />percent of the agency's moneys may be invested in the bankers' acceptances of any one commercial bank
<br />pursuant to this section.
<br />City of Santa - Annual Page 31 July 1, 2020 -
<br />Statement of Investment Policy June 30, 2021
<br />55A-37
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