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CITY OF SANTA ANA STATEMENT OF INVESTMENT POLICY JULY 2008-2009 Mortgage Association), Ii'I'CB (Federal Farm Credit Bank), E'IILEl (Federal Home Loan Bank Board), I'HLMC (Federal Home Loan Mortgage Corporacion), ~ (Pede~~l National Mo~L~d~e Association), S~ (Student Loan Mortgage Adminiscration), FHA (Federal Housing Administration) and TVA (Tennessee Valley Authority). Although there is no percentage limitation on these issues, the .prudent investor" rule shall apply for a single agency name as U.S. Government backing is implied rather than guaranteed. C. Bills of exchange or time drafts drawn on and. accepted by a commercial bank, otherwise known as banker's acceptances, which are eligible for purchase by the Federal Reserve System. Purchases of banker's acceptances may not exceed one hundred, eighty (180) days or forty percent (40~) of the cost value of the Fund which may be invested pursuant to this section. However, no more than thirty percenL (30\) of the City'S cost value of the Fund nay be invested in the bankers acceptances of anyone commercial bank pursuant to this section. D. Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by Moody'S Investor Services, Inc. (Moody's), Standard and Poor's (SS.P) or Fitch Financial SeL-vices, IIlC. (Fitch). The corporation that issues the commercial paper shall be organized ~~d operating within the United States, shall have total assets in excess of five-hundred, million dollars ($500,OOO,000), and shall issue debt, other than commercial paper, if any, that is rated "A" or higher by Moody's or S&P or Fitch. Eligible commercial paper shall have a maximum maturity of two-hundred seventy (270) days or less. The City may purchase no more than ten percent (10%) of the outstanding commercial paper of any single corporate issue. Purchases of comme=cial paper may not exceed twenty-five percent (25%1 of the surplus money which may be invested. E. Negotiable certificates of deposit issued "::Jy a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union or by a state-:icensed branch of a foreign bank. However, the City shall not invest in negotiable certificates of deposit issued by a state or federal credit union if a menber of the Cicy Councilor any City personnel with investment decision making authority also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the otate or federal credit Wl:.on issuing the negotiable certificates of deposit. The City's investment in negotiable certificates of deposit may not exceed thirty percent 130%) of the cost value of the Fund. The amount so invested ahall be subject to the limitations of GOvernment Code Section 53638 which g..nerally provides that the deposit shall Resolution No. 2008-045 Page 6 of 10