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CITY OF SANTA ANA STATEMENT OF INVESTMENT POLICY <br />JULY 1, 2016 —JUNE 30, 2017 <br />Page 8 <br />Government Code and with assets under management in excess of five - hundred, <br />million dollars ($500,000,000). <br />The purchase price of shares of beneficial interest, (mutual funds) purchase pursuant to <br />this subdivision shall not include any commission that these companies may charge. <br />Investments in this category shall be restricted to money market mutual funds that seek to <br />maintain a Net Asset Value of $1. Money market mutual funds provide daily liquidity; <br />therefore, there is no final stated maturity for this investment category. Investments in <br />mutual funds shall be restricted to Funds that have the highest ranking or the highest <br />letter and numerical rating provided by not less than two of the following nationally <br />recognized statistical rating organizations: Moody's, Standard & Poor's or Fitch. <br />Purchases in this category shall not exceed 20% of the book value of the Portfolio. <br />Purchases in a single mutual fund shall not exceed 10% of the book value of the Portfolio. <br />Money must be deposited in state or national banks, state or federal savings associations or <br />state or federal credit unions in the State of California. It may be in inactive deposits, active <br />deposits or interest- bearing active deposits. The deposits cannot exceed the amount of the <br />bank's or savings and loan's paid up capital and surplus. <br />The bank or savings and loan must secure the active and inactive deposits with eligible <br />securities having a market value of one - hundred, ten percent (110 %) of the total amount of the <br />deposits. State law also allows as an eligible security, first trust deeds having a value of one - <br />hundred, fifty percent (150 %) of the total amount of the deposits. A third class of collateral is <br />letters of credit drawn on the Federal Home Loan Bank (FHLB). <br />The Treasurer may waive, at his discretion, security for that portion of a deposit which is insured <br />pursuant to federal law. Currently, the first two- hundred, fifty- thousand dollars ($250,000) of a <br />deposit is federally insured. It is to the City's advantage to waive this collateral requirement for <br />the first $250,000 because we receive a higher interest rate. <br />55C -18 <br />