2003-056 - Considering the City's Statement of Investment Policy

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CITY OF SAN'iA A.MA STATW-M~ OF INVESTMENT POLICY JULY 2003-2004 shall not exceed the shareholder's equity of any depository ba~, or the total net w~rth of any depository savings association or federal association, or the total of the unimpaired capital and surplus of an insured industrial loan company. Repurchase Agreements. For purposes of this section, the term "repurchase agreement moans a purchase o£ securities by the local agency pursuant .to an agreement by which the seller will repurchase the securities oH or before~ specified date and for a specified amount and will deliver the underlying securities to a third party custodian. The City may invest in repurchase agreeme~ts with primary dealers of the Federal Reserve with which the City has entered into a PSi master repurchase contract which specifies te~ns and conditions of repurchase agreements. The market value of securl=ies used as collateral for repurchase agreements shall not be allowed to fall below 102 percent of the value cf the repurchase ag-reement and shall be valued daily by the rtl-party custodial agent. Securities that can De pledged for collateral shall consist only of investments pMrm~tted within this policy wi=h a maximum maturity of five years. If there is a default of the broker, the collateral securities cae be sold. Since the securities are valued daily, it is likely that the sale proceeds will equal or exceed the value of the repurcP~se agreement amount. Purchases in this category shall not exceed 90 days Or 30 percent of the cost valum of the Local Agency Investmen~ Fund - State P~ol. The City may invest in the Local Agency Inveatmeut Fund (~tlF) established by the State Treasurer under California Government Code Section 16429.1 for the benefit of local agencies. Although there is no percentage limitation on this fund, the ,,prudent investor" rule shall apply for a single agency name. Medium Term Co_~porate Notes issued by co~porations or~anlzed and operating within the United States or by deposiuory lnstitutions licensed in the united ~tate~ or any state and operat~n~ within the united States. Notes eligible for investment shall be rated in a rating category of "A" or its equivalent or better by a nationally recognized ratiz~ service. Purchases in this category shall not exceed three years to maturity or 15 percent of the cost value of the Fund. Purchases in a single issuer in this category shall not exceed 5 percent of the cost value of the Fund. Shares of beneficial interest issued ~y diversified management companies that are money market fun~g registered with the Securities and Exchange Commission under the InVestment Company Act of 19~0. The company shall have met either of the following criteria: 1. Attained the highest ranking Or the hi~hest letter Resolution No. 2003-056 Page 8 of 11