19D - ANNUAL STMT OF INV - Laserfiche WebLink

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CITY OF SANTA ANA STATEMENT OF INVESTMENT POLICY JULY 2009-2010 not exceed the shareholder's equity of any depository bank, or the total net worth of any depository savings association or federal association, or the total of the unimpaired capital and surplus of an insured industrial loan company. F. Repurchase Agreements. For purposes of this section, the term "repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the seller will repurchase the securities on or before a specified date and for a specified amount and will deliver the underlying securities to a third party custodian. The City may invest in repurchase agreements with primary dealers of the Federal Reserve with which the City has entered into a PSA master repurchase contract which specifies terms and conditions of repurchase agreements. The market value of securities used as collateral for repurchase agreements shall not be allowed to fall below 102 percent of the value of the repurchase agreement and shall be valued daily by the tri-party custodial agent. Securities that can be pledged for collateral shall consist only of investments permitted within this policy with a maximum maturity of five (5) years. If there is a default of the broker, the collateral securities can be sold. Since the securities are valued daily, it is likely that the sale proceeds will equal or exceed the value of the repurchase agreement amount. Purchases in this category shall not exceed ninety (90) days or thirty percent (30%) of the cost value of the Fund. G. Local Agency Investment Fund - State Pool. The City may invest in the Local Agency Investment Fund (LAIF) 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. H. Medium Term Corporate Notes issued by corporations organized and operating within the United States or by depository institutions licensed in the United States or any state and operating 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 rating service. Purchases in this category shall not exceed three (3) years to maturity or fifteen percent (15%) of the cost value of the Fund. Purchases in a single issuer in this category shall not exceed five percent (5%) of the cost value of the Fund. I. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940. The company shall have met either of the following criteria: 19D-6