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6.A. -Page 8 of 22 <br />CITY OF REDWOOD CITY <br />INVESTMENT POLICY <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 />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 />F. The City Treasurer will conduct an annual review of the financial condition and registrations <br />of brokers/dealers on the City's approved list. <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 />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 />IX. Authorized Investments (with limitation and auality guidelines) <br />The California Government Code sections 53600 et seq. governs the allowable investments into which a <br />local government agency can enter. These Government Code sections also stipulate as to the portfolio <br />percentage limits and investment quality standards for some but not all permitted investments. The <br />Government Code sections provide a starting point for establishing the City quality standards, percentage <br />limits and maturity levels. Should the Government Code become more restrictive than this policy, the <br />Government Code restrictions shall prevail. <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 the <br />close of the date on which the security is purchased. <br />Additional requirements related to some investment types are detailed in the following sections of this <br />policy. <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 United <br />States are pledged for payment of principal and interest. There is no limitation on the percentage <br />of the portfolio that can be invested in this category, although a five-year maturity limitation is <br />applicable. <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 />C. LOCAL AGENCY INVESTMENT FUND (LAIF) — Maximum $65M per account (current State rules) <br />Approved update: °% 5 <br />W <br />