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7056 <br /> 6. Bankers Acceptances shall be restricted to those of U.S. banks eligible for purchase by the <br /> Federal Reserve System. <br /> 7. Repurchase Agreements must be from a national or state bank in the U.S. that is a <br /> member of the Federal Reserve System and whose capital and surplus is at least <br /> $10,000,000 or is a primary reporting dealer in U.S. government securities to the Federal <br /> Reserve Bank of New York; or a securities broker-dealer licensed pursuant to chapter 80A, <br /> or an affiliate of it, regulated by the securities and exchange commission and maintaining <br /> a combined capital and surplus of$40,000,000 or more, exclusive of subordinated debt. <br /> The City shall receive a confirmation safekeeping receipt with a complete description of <br /> the collateral on the repurchase agreement. <br /> 8. Shares in mutual funds investing exclusively in U.S. government and agency issues with <br /> maturities of no longer than 13 months, referred to as "money market funds". <br /> The City will not invest in the following instruments: <br /> a) Reverse Repurchase agreements <br /> b) Mortgage-Backed securities, as defined in Minnesota Statutes 118A.04 Subd. 6 <br /> c) Future Contracts <br /> d) Options <br /> e) Guaranteed investment contracts <br /> 5-6. BANKS AND DEALERS <br /> The City will conduct its investment transactions with financial institutions designated by the City <br /> Council. These institutions will meet the following criteria: <br /> 1. Banks,Savings Banks and Savings and Loans shall be restricted to those having a minimum <br /> capital and surplus of$10,000,000 and a net worth to asset ratio minimum of 5.0%, except <br /> for the City's main checking account at the Bridgewater Bank, Navarre. <br /> 2. Security broker/dealers shall be restricted to those regulated by the SEC, have a minimum <br /> capital of$40,000,000 and may include "primary" dealers or regional dealers. <br /> 3. Municipalities must obtain from their brokers certain representations regarding future <br /> investments. Minnesota Statutes 118A.05 requires the City to provide each broker with <br /> information regarding the City's investment restrictions. All brokers will provide the City <br /> with a Broker/Dealer Certification stating that they will do business with the City <br /> according to Minnesota Statute and the Orono Investment Policy. The Broker/Dealer <br /> Certification will be signed by an officer of the company. <br /> 5-7. MATURITIES AND DIVERSIFICATION <br /> The City's policy for portfolio diversification shall be to stagger maturities which will avoid undue <br /> concentration of assets while providing stability of income and reasonable liquidity. Short-term <br /> investments will mature on or near the anticipated date of need to pay for recurring operations. <br /> Long-term investments are made for debt service requirements; and represent an opportunity <br /> to extend maturities and achieve higher yields. Maturities should not be extended beyond eight <br /> 5-3 <br />