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<br /> <br />City of Santa - Annual Page I July 1, 2021 - <br />Statement of Investment Policy June 30, 2022 <br />APPENDIX IV. <br /> <br />GLOSSARY OF ADDITIONAL COMMON PUBLIC LOCAL AGENCY <br />INVESTMENT TERMS <br /> <br /> <br />ACCRUED INTEREST: The accumulated interest payable on a security since the last interest payment made <br />by the issuer. <br /> <br />AMORTIZATION: The systematic reduction of the amount owed on a debt issue through periodic payments <br />of principal. <br /> <br />ASKED PRICE (OR ASK): The price at which securities are offered. <br /> <br />BASIS POINT: A unit of measurement used in the valuation of fixed-income securities equal to 1/100 of 1 <br />percent of yield, e.g., “1/4” of 1 percent is equal to 25 basis points. <br /> <br />BID PRICE: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) <br />See Offer Price. <br /> <br />CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION (CDIAC): This California state <br />commission provides information, education and technical assistance on debt issuance and public fund <br />investments to local public agencies and other public finance professionals. The Commission was created in <br />1981 as the California Debt Advisory Commission to function as the State's clearinghouse for public debt <br />issuance information and is tasked to assist state and local agencies with the monitoring, issuance and <br />management of public debt. The Commission's name was changed to the California Debt and Investment <br />Advisory Commission with the passage of Chapter 833, Statutes of 1996 (AB 1197), and its mission was <br />expanded to cover public investments. <br /> <br />CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS (CSMFO): Is a professional association of <br />state, county, and local government finance officers in California. A statewide organization serving all <br />California municipal finance professionals, an affiliate of the nationwide Government Finance Officers <br />Association (GFOA), membership is open to anyone in the State of California actively engaged in government <br />finance in any city, county, or special district. CSMFO has technical and professional committees that deal <br />with financial issues facing government and the public. <br /> <br />CALLABLE SECURITIES: A security that can be redeemed by the issuer before the scheduled maturity. <br /> <br />CALL PRICE (OR CALL): The price at which an issuer may redeem a bond prior to maturity. The price is <br />usually at a slight premium to the bond’s original issue price to compensate the holder for loss of income and <br />ownership. <br /> <br />CalTRUST (INVESTMENT TRUST OF CALIFORNIA): An investment pool partnership authorized under <br />California state law created by the CSAC (California State Association of Counties) Finance Corporation and <br />the League of California Cities to provide a convenient method for local agencies to pool their assets for <br />investment. State statute authorizes local agencies to directly invest in joint investment pools, such as <br />CalTRUST. There is no requirement that a local agency become a JPA member. Local agencies have four <br />account options – Government Fund, Money Market Fund, Short-Term, or Medium-Term accounts. Local <br />agencies can select an account option which matches their investment time horizon and cash flow needs and <br />easily reallocate among accounts as those needs change. <br />