Laserfiche WebLink
CITY OF REDWOOD CITY <br />INVESTMENT POLICY <br /> draft update: 8/28/17 11 <br /> <br />A review of Investment Pool policies and procedures is required prior to investing, and on an annual basis. <br />XII. Collateralization <br /> <br />A. Bank Deposits: Under provisions of Best Practices, California banks and savings and loan <br />associations are recommended to secure the City’s deposits by pledging government securities <br />with a value of 110% of principal and accrued interest or secure City deposits by pledging <br />first trust deed mortgage notes having a value of 150% of the City’s total deposits. <br /> <br />B. Certificates of Deposit: <br />1. The market value of securities that underlay certificates of deposit shall be valued at 110% <br />of the market value of principal and accrued interest. <br />2. The City Treasurer, at his/her discretion may waive the collateral requirement for deposits <br />up to the maximum dollar amount which are covered by the Federal Deposit Insurance <br />Corporation. <br /> <br />C. Repurchase Agreements <br /> <br />1. The market value of securities that collateralize the investment shall be valued at 102% of <br />the market value of principal and accrued interest. <br />2. The value shall be adjusted no less than weekly. Since the market value of the <br />underlying securities is subject to daily market fluctuations, the investments in repurchase <br />agreements shall be in compliance if the value of the underlying securities is brought back <br />to 102% no later than the next business day. <br /> <br />D. A clearly marked evidence of ownership, safekeeping receipt, must be supplied to the City <br />and retained. <br /> <br />E. The City chooses to limit collateral to US Treasuries. <br /> <br />F. Collateral will always be held by an independent third-party with whom the entity has a current <br />written custodial agreement. <br /> <br />G. The right of collateral substitution is granted based on the approval of the City Treasurer. <br /> <br />XIII. Safekeeping, Custody and Competitive Bids <br /> <br />A. Third-party safekeeping is required for all investments. Securities may be maintained by a <br />banking institution or a broker/dealer firm for safekeeping as long as the securities are held in <br />the City’s name. <br /> <br />B. Third-party safekeeping arrangements will be approved by the City Treasurer and will be <br />corroborated by a written custodial agreement. <br /> <br />C. All investment transactions of the City will be conducted using standard delivery vs. payment <br />(DVP) procedures. <br /> <br />D. All securities held by the safekeeping custodian on behalf of the City shall have the City of <br />6.1.B. - Page 37