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6.A. -Page 9 of 40 CITY OF REDWOOD CITY INVESTMENT POLICY investments must be procured from the broker/dealers customarily used by the City. 4. The Federal Reserve Bank: Direct purchases of Treasury bills, notes and bonds from the U.S. Federal Reserve Banks branches are allowed and are exempt from quality requirements of section VIII of this policy. E. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must provide the following information to the City Treasurer: 1. A completed City of Redwood Broker/Dealer Questionnaire 2. Audited financial statements 3. Proof of Financial Industry Regulatory Authority (FINRA) certification 4. Proof of state registration 5. Certification of having read and willingness to comply with City's investment policy. F. The City Treasurer will conduct an annual review of the financial condition and registrations of brokers/dealers on the City's approved list. G. A current audited financial statement is required to be on file for each financial institution and broker/dealer with which the City invests. H. Certificates of deposit will not be placed with an institution once it has received a Cease and Desist order from any bank regulatory agency. IX. Authorized Investments (with limitation and aualitveuidelines) The California Government Code sections 53600 et seq. governs the allowable investments into which a local government agency can enter. These Government Code sections also stipulate as to the portfolio percentage limits and investment quality standards for some but not all permitted investments. The Government Code sections provide a starting point for establishing the City quality standards, percentage limits and maturity levels. Should the Government Code become more restrictive than this policy, the Government Code restrictions shall prevail. Whenever a maximum allowable percentage of the portfolio is stipulated for any type of security as detailed below, the limit or maximum allowable is determined by the portfolio size or composition at the close of the date on which the security is purchased. Additional requirements related to some investment types are detailed in the following sections of this policy. A. United States Treasury Obligations — No Maximum United States Treasury bills, notes, bonds, or those for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no limitation on the percentage of the portfolio that can be invested in this category, although a five-year maturity limitation is applicable. B. Federal Agency or Government Sponsored Enterprises (GSEs) — No Maximum DRAFT on 1/13/20 Approved by Council 1/14/2019 5 15