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~. Federal Farm Credits.) Commercial Paper State Local Agency Investment Fund Passbook Savings Account Money Market Certificates v. AMOUNTS TO BE INVESTED The City will invest all funds and estimated checking account float except for those amounts required by the City's banks to pay for bank services furnished to the City. VI. GUIDELINES BY TYPE OF INVESTMENT A. CERTIFICATES OF DEPOSIT: Cash will be invested only in FDIC or FSLIC insured or fully collateralized certificates of deposit. Collateral for a given investment must be 110% of principal for government securities collateral and 150% of~ principal for first mortgage colla~eral. No more thanr/:S%\of the City portfolio. not to exceed 53 ~illion, shall be~~/ invested in anyone institution. Aniinstitution must meet the following criteria to be considered by the City: For investments greater than $100,000. the institution must maintain $100 million in assets. For investments greater than $300.000, the institution must maintain at least $300 million in assets. The City will not invest in any institution less than five years old. The institution must maintain a net worth to asset ratio of at least 3%. and a positive earnings record for immediate past 3 years. The institution must have on file with the City a current FDIC call report (banks) or FHLB report. The bank or institution must be located in California. The institution must have a jumbo certificate to total assets ratio of less than 50%. The above requirements will be waived whenever the total amount on deposit with any institution does not exceed $100,000; providing, that the institution is insured by either the Federal Deposit Insurance Corporation (FDIC) or Federal Savings and Loan Insurance Corporation (FSLIC). Page 3 of 6 11401