03-10-1993 Council Agenda - Laserfiche WebLink

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LITTLE CANADA FIREMEN'S RELIEF ASSOCIATION NOTES TO FINANCIAL STATEMENTS December 31, 1992 Page 3 of 9 C) Obligations which are legally authorized investments for debt service funds under section 475.66, subdivision 3. D) Qualified state or local government obligations acceptable to the treasurer or chief financial officer. Qualified obligations must be general obligations rated "A" or better by Moody's Investors Service, Inc. or Standard & Poor's Corporation. At December 31, 1992, the carrying amount and bank balance of the Relief Association's deposits were 52,268 all of which were covered by federal depository insurance. B. INVESTMENTS Minnesota Statutes authorize the Relief Association to invest in the following: A) Governmental bonds, notes, bills, mortgages and other fixed obligations, provided the issue is backed by the full faith and credit of the issuer or the issue is rated among the top four quality rating categories by a nationally recognized rating agency. The obligations in which the Relief Association may invest include guaranteed or insured issues of: 1) The United States or its agencies 2) Canada and its provinces 3) States and their municipalities B) Corporate bonds, notes, debentures or any other long -term evidence of indebtedness issued or guaranteed by a corporation organized under the laws of the United States or the Dominion of Canada if they conform to the following provisions: I) The principal and interest of obligations of corporations incorporated or organized under the laws of the Dominion of Canada or any province thereof shall be payable in United States dollars; 2) Obligations shall be rated among the top four quality categories by a nationally recognized rating agency. C) Banker's acceptance of United States banks issued by banks rated in the highest four quality categories by a nationally recognized rating agency. D) Commercial paper issued by United States corporations or their Canadian subsidiaries and rated in the highest two quality categories by a nationally recognized rating agency. E) Mortgage participation or pass through certificates evidencing interests in pools of first mortgages. F) Repurchase agreements and reverse repurchase agreements with collateral limited to letters of credit and certain securities. G) Guaranteed investment contracts issued by insurance companies or banks rated in the top four quality categories by a nationally recognized rating agency. H) Corporate stocks or convertible issues of any corporation organized under the laws of the United States or the States thereof, Canada or its provinces or any corporation listed on the New York Stock Exchange or the American Stock Exchange, if they conform to the following: Page 35