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<br />11 <br />4846-5351-8811v3/200434-0005 <br />(d) Permitted securities shall include the investments listed in 1, 2 and 3 <br />above. <br />(e) The forward delivery agreement shall include the following <br />provisions: <br />(i) The permitted securities must mature at least one (1) business <br />day before a debt service payment date or scheduled draw. <br />The maturity amount of the permitted securities must equal or <br />exceed the amount required to be in the applicable fund on the <br />applicable valuation date. <br />(ii) The agreement shall include market standard termination <br />provisions, including the right to terminate for the provider’s <br />failure to deliver qualifying securities or otherwise to perform <br />under the agreement. There shall be no breakage fee or <br />penalty payable to the provider in such event. <br />(iii) Any breakage fees shall be payable only on debt service <br />payment dates and shall be subordinated to the payment of <br />debt service and debt service reserve fund replenishments. <br />(iv) The provider must submit at closing a bankruptcy opinion to <br />the effect that upon any bankruptcy, insolvency or <br />receivership of the provider, the securities will not be <br />considered to be a part of the provider’s estate. <br />(v) The agreement may not be assigned (except to a provider that <br />would otherwise be acceptable under these guidelines). <br />(12) Forward delivery agreements in which the securities delivered mature after <br />the funds may be required but provide for the right of the City or the Trustee to put the securities <br />back to the provider under a put, guaranty or other hedging arrangement. <br />(13) Any other investment which the City is permitted by law to make, including <br />without limitation investment in the Local Agency Investment Fund of the State of California <br />(LAIF), provided that any investment of the type authorized pursuant to paragraphs (d), (f), (h) and <br />(i) of section 53601 of the California Government Code are additionally restricted as provided in the <br />appropriate paragraph or paragraphs above applicable to such type of investment and provided <br />further that investments authorized pursuant to paragraphs (k) and (m) of section 53601 are not <br />permitted. <br />Maturity of investments shall be governed by the following: <br />a. Investments of monies (other than reserve funds) shall be in securities and <br />obligations maturing not later than the dates on which such monies will be <br />needed to make payments. <br />b. Investments shall be considered as maturing on the first date on which they <br />are redeemable without penalty at the option of the holder or the date on <br />which the Trustee may require their repurchase pursuant to repurchase <br />agreements.