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CITY OF SANTA ANA STATEMENT OF INVESTMENT POLICY <br />JULY 2012-2013 <br />investor" rule shall apply for a single agency name as U.S. Government backing is implied <br />rather than guaranteed. <br />C. Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise <br />known as banker's acceptances, which are eligible for purchase by the Federal Reserve <br />System. Purchases of banker's acceptances may not exceed one hundred, eighty (180) <br />days or forty percent (40%) of the cost value of the Fund which may be invested pursuant <br />to this section. However, no more than thirty percent (30%) of the City's cost value of the <br />Fund may be invested in the bankers acceptances of any one commercial bank pursuant <br />to this section. <br />D. Commercial paper of “prime” quality of the highest ranking or of the highest letter and <br />number rating as provided for by Moody's Investor Services, Inc. (Moody’s), Standard and <br />Poor's (S&P) or Fitch Financial Services, Inc. (Fitch). The corporation that issues the <br />commercial paper shall be organized and operating within the United States, shall have <br />total assets in excess of five-hundred, million dollars ($500,000,000), and shall issue debt, <br />other than commercial paper, if any, that is rated "A" or higher by Moody's or S&P or Fitch. <br /> Eligible commercial paper shall have a maximum maturity of two-hundred seventy (270) <br />days or less. The City may purchase no more than ten percent (10%) of the outstanding <br />commercial paper of any single corporate issue. Purchases of commercial paper may not <br />exceed twenty-five percent (25%) of the surplus money which may be invested. <br />E. Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings <br />association or a federal association (as defined by Section 5102 of the Financial Code), a <br />state or federal credit union or by a state-licensed branch of a foreign bank. However, the <br />City shall not invest in negotiable certificates of deposit issued by a state or federal credit <br />union if a member of the City Council or any City personnel with investment decision <br />making authority also serves on the board of directors, or any committee appointed by the <br />board of directors, or the credit committee or the supervisory committee of the state or <br />federal credit union issuing the negotiable certificates of deposit. The City’s investment in <br />negotiable certificates of deposit may not exceed thirty percent (30%) of the cost value of <br />the Fund. The amount so invested shall be subject to the limitations of Government Code <br />Section 53638 which generally provides that the deposit shall not exceed the shareholder’s <br />equity of any depository bank, or the total net worth of any depository savings association <br />or federal association, or the total of the unimpaired capital and surplus of an insured <br />industrial loan company. <br />F. Repurchase Agreements. For purposes of this section, the term "repurchase agreement” <br />means a purchase of securities by the local agency pursuant to an agreement by which the <br />seller will repurchase the securities on or before a specified date and for a specified <br />amount and will deliver the underlying securities to a third party <br /> <br />