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Investment Policy Page-3- V. AMOUNTS TO BE INVESTED The City will invest all funds and estimated checking account float except for those amounts required by the City banks to pay for bank services furnished to the City. VI. GUIDELINES BY TYPE OF INVESTMENT A. CERTIFICATES OF DEPOSIT: Cash wi//be invested only in FDIC or FSLIC insured or fully co/latera/ized certificates of deposit. Collateral for a given investment must be 110% of principal for government securities collateral and 150% of principal for first mortgage collateral. No more than 7. 5% of the City portfolio, not to exceed $3 Million shall be invested in any one institution. An institution 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/east $300 Mi#ion in assets. The City will not invest in any institution less than five years old. The institution must maintain a net worth to asset ration of at least 3% and a possible eamings records for immediate past three years. The institution must have on t'tle with the City a current FDIC call report (banks) or FHLB report. The bank or institution must be located in Califomia. 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). B, BANKERS ACCEPTANCE: The City will only invest through the 15 largest banks in the United States or the 100 largest banks in the world (in terms of assets). The maximum investment with any one institution will not exceed $3 Million.