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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 />G. Neqofiable certificates of deposit issued by a nationally or state -chartered bank <br />a sa vings.. association or a federal association as defined by Section 5102 of the <br />Financial Code), g state or federal credit union orb 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 />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 <br />investment category. Although there is no percentage limitation on this fund, the <br />"prudent investorit rule shall apply for a single agency name. In keeping with LAIF <br />deposit limit investments, City LAIF investments shall not exceed $75 million <br />per active account, unless a greater deposit limit for regular accounts is <br />authorized by the State Treasurer during the term of this Statement of <br />Investment Policy, in which case City LAIF investments may increase up to that <br />limit. <br />Ci of Santa - Annua,l,--_­..­-­ Page 10 . ...... <br />Statement of Investment Policy June 30,2025 <br />