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the institutions overall IDC ranking shall be excellent (165-199) or superior (200-300). <br />6. Bankers Acceptances shall be restricted to those of U.S. banks eligible for purchase by <br />the Federal Reserve System. <br />7. Repurchase Agreements must be from a national or state bank in the U.S. that is a member <br />of the Federal Reserve System and whose capital and surplus is at least $10,000,000 or is a primary <br />reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or a <br />securities broker-dealer licensed pursuant to chapter 80A, or an affiliate of it, regulated by the <br />securities and exchange commission and maintaining a combined capital and surplus of $40,000,000 <br />or more, exclusive of subordinated debt. The City shall receive a confirmation safekeeping receipt <br />with a complete description of 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 instrumentst <br />1. Reverse Repurchase agreements <br />2. Mortgage-Backed securities, as defined in Minnesota Statutes 118A.04 Subd. 6 <br />3. Future Contracts <br />4. Options <br />5. Guaranteed investment contracts <br />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. Financial institutions located in the state of Minnesota. <br />2. Banks, Savings Banks and Savings and Loans shall be restricted to those having a <br />minimum 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 First National Bank of the Lakes, Navarre. <br />3. Security broker/dealtiS 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 information <br />regarding the City's investment restrictions. All brokers will provide the City with a Broker/Dealer <br />Certification stating that they will do business with the City according to Minnesota Statute and the <br />Orono Investment Policy. The Broker/Dealer Certification will be signed by an officer of the <br />company. <br />.!