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<br />City of Santa - Annual Page D July 1, 2021 -
<br />Statement of Investment Policy June 30, 2022
<br />assumes and guarantees that all security holders will receive timely payment of principal and interest.
<br />[Referenced page: 9]
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<br />FEDERAL RESERVE: The central bank of the United States created by Congress and consisting of a seven
<br />member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that
<br />are members of the system. [Referenced pages: 8, 10, 28, 33, 34]
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<br />FIDUCIARY: Person, company, or association holding assets in trust of a beneficiary. [Referenced pages:
<br />15, 25]
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<br />FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): FINRA is a private corporation that
<br />acts as a self-regulatory organization (SRO). FINRA is the successor to the National Association of Securities
<br />Dealers, Inc. (NASD) and the member regulation, enforcement and arbitration operations of the New York
<br />Stock Exchange. It is a non-governmental organization that regulates member brokerage firms and exchange
<br />markets. The government agency which acts as the ultimate regulator of the securities industry, including
<br />FINRA, is the Securities and Exchange Commission. [Referenced page: 8, 9]
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<br />FUTURES CONTRACT: Agreement to buy or sell a specific amount of a commodity or financial instrument
<br />at a particular price on a stipulated future date. [Referenced pages: 9, 35]
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<br />EX OFFICIO: Ex officio describe a position someone automatically gains because of another job or position
<br />he/she already holds. For example, the United States Vice President is the ex officio President of the Senate.
<br />In a like fashion, in accordance with the California Government Code the Chief Fiscal Officer of a city which
<br />does have a specified City Treasurer is “ex officio” City Treasurer. [Referenced page: 6]
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<br />GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the
<br />volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings
<br />and loan associations, and other institutions. Security holder is protected by full faith & credit of the U.S.
<br />Government. Ginnie Mae securities are backed by FHA, VA or FHA mortgages. The term "pass-throughs"
<br />is used to describe Ginnie Maes. [Referenced page: 9]
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<br />GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES): Is a collection of commonly-followed
<br />accounting rules and standards for financial reporting. The acronym is pronounced "gap." GAAP
<br />specifications include definitions of concepts and principles, as well as industry-specific rules. [Referenced
<br />page: 2]
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<br />GUARANTEED INVESTMENT AGREEMENTS OR CONTRACTS (GIC): An agreement or contract that
<br />guarantees repayment of principal and a fixed or floating interest rate for a predetermined period of time.
<br />[Referenced page: 14]
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<br />INTEREST: The amount earned while owning a debt security, generally calculated as a percentage of the
<br />principal amount. [Referenced pages: 3, 14, 16, 17, 18, 28, 31, 36]
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<br />INVERSE FLOATER: A bond or other type of debt whose coupon rate has an inverse relationship to a
<br />benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. (Referenced
<br />pages: 14, 36]
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<br />INVESTMENT POLICY: A concise and clear statement of the objectives and parameters formulated by an
<br />investor or investment manager for a portfolio of investment securities. [Referenced pages: 1, 2, 3, 5, 6, 8, 11,
<br />12, 13, 16, 20, 21, 22, 24, 38]
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