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