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<br /> <br />City of Santa - Annual Page <br />11 July 1, 2021 - <br />Statement of Investment Policy June 30, 2022 <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 <br />brought back up to one hundred two percent (102%) no later than the next <br />business day. The underlying collateral shall be limited to United States <br />Government Treasury Bills, Notes, and Bonds, or obligations issued by a Federal <br />Agency or United States Government Sponsored Enterprises obligations. Upon <br />the written approval of the Executive Director for FMSA, substituted securities <br />may be pledged for collateral but shall consist only of investments permitted <br />within this investment policy with a maximum maturity of five (5) years. If there is <br />a default of the broker, the collateral securities can be sold. Since the securities <br />are valued daily, it is likely that the sale proceeds will equal or exceed the value <br />of the repurchase agreement amount. Purchases in this category shall not <br />exceed one (1) year or twenty percent (20%) of the cost value of the investment <br />portfolio. Retail repurchase agreements and reverse agreements shall not be <br />authorized for purchase. <br /> <br />G. Negotiable certificates of deposit issued by a nationally or state-chartered bank, <br />a savings association or a federal association (as defined by Section 5102 of the <br />Financial Code), a state or federal credit union or by a state-licensed branch of a <br />foreign bank. However, the City shall not invest in negotiable certificates of <br />deposit issued by a state or federal credit union if a member of the City Council <br />or any City personnel with investment decision making authority also serves on <br />the board of directors, or any committee appointed by the board of directors, or <br />the credit committee or the supervisory committee of the state or federal credit <br />union issuing the negotiable certificates of deposit. Effective January 1, 2020 no <br />more than fifty percent (50%) of the cost value of the City’s investment portfolio <br />may be invested in deposits, including certificates of deposit, through a placement <br />service as authorized under Government Code 53601.8 (excludes negotiable <br />certificates of deposit authorized under Section 53601(i)). On January 1, 2026, <br />the maximum percentage of the portfolio shall revert back to thirty percent (30%) <br />percent. Investments made pursuant to Government Code Section 53635.8 <br />remain subject to a maximum of thirty percent (30%) of the cost value of the <br />investment portfolio. The amounts so invested shall be subject to the limitations <br />of Government Code Section 53638 which generally provides that the deposit <br />shall not exceed the shareholder’s equity of any depository bank, or the total net <br />worth of any depository savings association or federal association, or the total of <br />the unimpaired capital and surplus of an insured industrial loan company. <br />Purchases of this category shall not exceed five years to maturity. <br /> <br />H. Local Agency Investment Fund - State Pool. The City may invest in the Local <br />Agency Investment Fund (LAIF) established by the State Treasurer under <br />California Government Code Section 16429.1 for the benefit of local agencies. <br />LAIF provides daily liquidity; therefore, there is no final stated maturity for this