AgdaPkt 2017-09-25 Closed and Joint SA PFA

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CITY OF REDWOOD CITY INVESTMENT POLICY draft update: 8/28/17 8 subject to the limitations of California Government Code Section 53638. Amounts in excess of FDIC insurance coverage shall be secured in accordance with California Government Code Section 53652. The City may use CD Placement Service for ease of administration to benefit from FDIC insured deposits without dealing with many banks. No more than 2% of the City’s portfolio may be invested in any one institution. The aggregate investment in such securities shall not exceed 10% of the City’s total portfolio. J. Negotiable Certificates of Deposit – Maximum of 30% Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of the City and the treasurer or other official of the City having legal custody of the moneys are prohibited from investing City funds, or funds in the custody of the City, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the City, or a person with investment decision making authority in the administrative office manager’s office, budget office, auditor- controller’s office, or treasurer’s office of the City also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. Eligible investments under this subdivision shall be rated in a rating category of “A” or its equivalent or better by a NRSRO. No more than 5% of the City’s portfolio shall be invested in a single issuer. Purchases of negotiable certificates of deposit shall not exceed 30% of the City’s moneys that may be invested pursuant to this section. K. Prime Commercial Paper – Maximum of 25% The City may invest in prime commercial paper of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph 1 or sub-paragraph 2 below: 1. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500,000,000 and (3) have debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or better by a NRSRO. 2. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program-wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond; and (3) have commercial paper that is rated in a rating category of “A-1” or its equivalent or better by a NRSRO. Eligible commercial paper shall have a maximum maturity of 270 days or less. The City may invest no more than 25% of their moneys in eligible commercial paper. The City may purchase no more than 10% of the outstanding commercial paper of any single issuer. No more than 5% of the City’s total portfolio shall be invested in the commercial paper of any one issuer. L. Bankers’ Acceptances – Maximum of 10% 6.1.B. - Page 34