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CITY OF REDWOOD CITY <br />INVESTMENT POLICY <br /> draft update: 8/28/17 5 <br />E. All financial institutions and broker/dealers who desire to become qualified bidders for <br />investment transactions must provide the following information to the City Treasurer: <br /> <br />1. A completed City of Redwood Broker/Dealer Questionnaire <br />2. Audited financial statements <br />3. Proof of Financial Industry Regulatory Authority (FINRA) certification <br />4. Proof of state registration <br />5. Certification of having read and willingness to comply with City’s investment policy. <br /> <br />F. The City Treasurer will conduct an annual review of the financial condition and <br />registrations of brokers/dealers on the City’s approved list. <br /> <br />G. A current audited financial statement is required to be on file for each financial institution <br />and broker/dealer with which the City invests. <br /> <br />H. Certificates of deposit will not be placed with an institution once it has received a Cease and <br />Desist order from any bank regulatory agency. <br /> <br />IX. Authorized Investments (with limitation and quality guidelines) <br /> <br />The California Government Code sections 53600 et seq. governs the allowable investments into which <br />a local government agency can enter. These Government Code sections also stipulate as to the <br />portfolio percentage limits and investment quality standards for some but not all permitted <br />investments. The Government Code sections provide a starting point for establishing the City quality <br />standards, percentage limits and maturity levels. Should the Government Code become more <br />restrictive than this policy, the Government Code restrictions shall prevail. <br /> <br />Whenever a maximum allowable percentage of the portfolio is stipulated for any type of security as <br />detailed below, the limit or maximum allowable is determined by the portfolio size or composition at <br />the close of the date on which the security is purchased. <br /> <br />Additional requirements related to some investment types are detailed in the following sections of <br />this policy. <br /> <br />A. United States Treasury Obligations – No Maximum <br />United States Treasury bills, notes, bonds, or those for which the full faith and credit of the <br />United States are pledged for payment of principal and interest. There is no limitation on the <br />percentage of the portfolio that can be invested in this category, although a five-year maturity <br />limitation is applicable. <br />. <br />B. Federal Agency or Government Sponsored Enterprises (GSEs) – No Maximum <br />Federal agency or United States government-sponsored enterprise obligations, participations, or <br />other instruments, including those issued by or fully guaranteed as to principal and interest by <br />federal agencies or United States government-sponsored enterprises. <br /> <br />C. LOCAL AGENCY INVESTMENT FUND (LAIF) – Maximum $65M per account (current State rules) <br />6.1.B. - Page 31