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July 1, 2023 - <br />June 30, 2024 <br /> City of Santa - Annual <br />Statement of Investment Policy Page 10 <br />C. Supranational Obligations in United States dollar denominated senior unsecured <br />unsubordinated obligations issued or unconditionally guaranteed by the <br />International Bank for Reconstruction and Development, International Finance <br />Corporation, or Inter-American Development Bank, with a maximum remaining <br />maturity of five years or less, and eligible for purchase or sale within the United <br />States. Investments under this subdivision shall be rated “AA” or better by an <br />NRSRO and shall not exceed thirty (30%) percent of the cost value of the <br />investment portfolio. <br />D. Bills of exchange or time drafts drawn on and accepted by a commercial bank, <br />otherwise known as banker's acceptances, which are eligible for purchase by the <br />Federal Reserve System. Purchases of banker's acceptances may not exceed <br />one hundred eighty (180) days or forty percent (40%) of the cost value of the <br />Fund which may be invested pursuant to this section. However, no more than <br />thirty percent (30%) of the City's cost value of the investment portfolio may be <br />invested in the banker’s acceptances of any one commercial bank pursuant to <br />this section. <br />E. Commercial paper of “prime” quality of the highest ranking or of the highest letter <br />and number rating as provided for by a Nationally Recognized Statistical Rating <br />Organization (NRSRO). The entity that issues the commercial paper shall be <br />organized and operating within the United States, as a general corporation, shall <br />have total assets in excess of five-hundred, million dollars ($500,000,000), and <br />has debt other than commercial paper, if any, that is rated "A" or higher by <br />NRSRO. The entity is organized within the United States as a special purpose <br />corporation, trust, or limited liability company; has program wide credit <br />enhancements including, but not limited to: over-collateralization, letters of credit, <br />or a surety bond; has commercial paper that is rated “A-1” or higher, or the <br />equivalent, by an NRSRO Eligible commercial paper shall have a maximum <br />maturity of two hundred seventy (270) days or less. The City may purchase no <br />more than ten percent (10%) of the outstanding commercial paper of any single <br />corporate issue. Purchases of commercial paper may not exceed twenty-five <br />percent (25%) of the investment portfolio. <br />F. Repurchase Agreements. For purposes of this section, the term "repurchase <br />agreement” means a purchase of securities by the local agency pursuant to an <br />agreement by which the seller will repurchase the securities on or before a <br />specified date and for a specified amount and will deliver the underlying securities <br />to a third-party custodian. The City may invest in repurchase agreements with <br />primary dealers of the Federal Reserve with which the City has entered into a <br />Securities Industry and Financial Markets Association (SIFMA) Master <br />Repurchase Agreement (MRA) which specifies terms and conditions of <br />repurchase agreements. The market value of securities used as collateral for <br />repurchase agreements shall not be allowed to fall below one hundred two <br />percent (102%) of the value of the repurchase agreement and shall be adjusted <br />no less than quarterly by the tri-party custodial agent. The investments in <br />repurchase agreements shall be in compliance if the underlying securities are