|
Sources: Sections 16340, 16429. 1, 271M,
<br />53601, 53601.6, 53601 8, 5300 at seq., 5305,
<br />53635 8, and 57603.
<br />° Mmucyaal Utilities Districts have the authority,
<br />under the Public Ut hme Code Section 12871 to
<br />invest in certain securities not addressed here.
<br />Section 53601 provloes that the maximum term
<br />glary investment authorized under this section,
<br />unless otherwise stated, is live years. However,
<br />the legislative bodymaygrant expressautiioutyto
<br />make investments either specifmallymas a partof
<br />anlnvestment programapproved bythe legislative
<br />bodythat exceeds this live yeareemalning maturity
<br />limit Such approval must be issued no less than
<br />three months prior to the purchase ofany security
<br />exceeding the live-yearmatuntyleat
<br />° Percentages apply to allporffnho,investments
<br />regardlessofmurce offunds. Formstance, cash
<br />fromareversompummum agreementwould n,
<br />subject to the restrictions.
<br />° Nomore than 30percentoHheagency'smgney
<br />maybe in bankers' acceptances of any one
<br />commercial bank
<br />Includes agencies defined as a city, a district,
<br />or other most agency that do not pool money in
<br />deposits or investment with other local agencies,
<br />other than local agencies that have the same
<br />governing body
<br />s Local agencies, other than counties or a city and
<br />county, may purchase no more than 10 percent
<br />of the misleading commercial paper of any
<br />single issuer
<br />" Issuing corporation must be organized and
<br />operating within the U S., have assommexcess
<br />of$500 million, anddebt.tmrth.n commercial
<br />paper deaths in a rating catmoryof "A"grits
<br />equivalentorhlgherbya nationa9yrecognized
<br />statistical rating organization, or the issuing
<br />corporationmustbe organlzedwithin the US as
<br />a specustraposecorpgration, trust, mLLC, have
<br />program wide comist enhancements, and have
<br />commercial paper that is rated 'A-i' orhgher,
<br />ortheegwi iont,byanationallyremgnized
<br />statistical rating agency
<br />Includes agencies defined ass county a city
<br />and county, mother localagency that pools
<br />moneym deposits orinmstments with otherlocel
<br />agenaes, including local agencies that have the
<br />samegoveream body Localagenciesthatpool
<br />exclusively with otherlocal agencies that have the
<br />same governing bodymust adhere to the limits set
<br />forth in Section 53601(h)(2)(C)-
<br />No more than 30percent ofthe agency'smoney
<br />maybe in negotiable certheadmaofdignmet that
<br />are authorized under Sechon53601(i).
<br />Effective January 1, 20W, an more Man 50
<br />percent of the agency's moneymaybe invested in
<br />deposits, midnight combicatesotgmesit, through
<br />a placement service as auffunnu d under53601 8
<br />(excludes negotiable certifichma of deposit
<br />authorized under Section 53601,B). On January
<br />1, 2026, the maximum percentage of the portfolio
<br />reverts back to 30 percent Investments made
<br />pursuant to 53635.8 remain subject to a maximum
<br />of30 percent of the portfolio.
<br />Reverse repurchase agreements or securities
<br />lending agreements de yexcced the 92-airy
<br />term it the agreement inaudes a written codicil
<br />guaranteeing a minimum earning orspread forms
<br />entire period between the sale ofa security using
<br />a reverse repurchase agreement or securities
<br />lending agummentand the final mstuntydams of
<br />the same security
<br />Reverse repurchase agreements must be made
<br />with pnmarydealers of the Federal Reserve Bank
<br />of New Yorkorwath a nationally, or state chartered
<br />bank Mat has a significant relationship with the
<br />local agency The local agency most have held
<br />the securifies used for the agreements for at
<br />Most 30 days.
<br />" 'Medium-termrwks'are defined in Section 53601
<br />as 'all corporate and depository institution debt
<br />securifies with a maximum remaining maturity of
<br />five Wintertime, issuedbyrnrporationsomanized
<br />and operating within the United States or by
<br />depositoryinstitufionslicensedbythe UnitedStates
<br />oranystam and operating within the United States'
<br />u No more than 10immunt avoided in anyone
<br />medicament This limitation does notapply, to
<br />money market mutual funds.
<br />° A mutual fund must receive the highest ranking
<br />bynotless than Ave nationallyrecogremdoding
<br />agencies or the fund must retain an investment
<br />advisor who is registered with the SEC (orexe ri t
<br />fromregistrathed, hasassets undermanagement
<br />in excess of $500 million, and has atleast
<br />five Wars'experaboximvesting in instruments
<br />authorized by Sections 53601 and53635.
<br />u A moneymarket mutual fund mustesseve the
<br />highest ranking bynotless than two nationally
<br />recognized statistical rating organizations or
<br />retain an humstmentaWisorregistmod with the
<br />SEC orexemptbomregistio tion and who has
<br />notless than five years'experience investors, in
<br />money market instruments with assets under
<br />management in excess of$500 million.
<br />° Investments in notes, bonds, or other obligations
<br />under Section 53601 (a) require that collateral be
<br />placed into the malady ofa trust company or the
<br />trust department of a bank that is not affiliated
<br />with the issuer of the secured obligation, among
<br />other specific unilateral requirements.
<br />° A pint powers authority pool must retain an
<br />investment advisor who is registered WM the
<br />SEC (or exempt from registration), has assets
<br />under management in excess of $500 million,
<br />and hasatleast fiveyears expersunmi rmatem
<br />in instruments authorized by Section 53601,
<br />subdivisions (a) to (a)..
<br />Local entities can deposit fo tween $200 million
<br />and $10 bigo r into the voluntary Investment
<br />PosramFund, upon approvalbytheagoverning
<br />bodies Deposits in the fund vases invested in the
<br />Pooled Money InvestmentAmount
<br />° Only those obligations issued or unconditionally
<br />guaranteed by the International Bank for
<br />Reconstruction and Development (IBRD),
<br />International Finance Corporation bFC), and
<br />Inter -American Development Bank (IADB), with a
<br />maximum remaining maturity of five years or less.
<br />LOCALAGENCY INVESTMENT GUIDELINES
<br />55A-63
<br />
|