Annual Financial Report 12/31/1987

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 Page 5 of 19 NOTE - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) Deposits (Continued) Authorized collateral includes the legal investments described below, as well as certain first mortgage notes and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City treasurer or in a financial institution other than that furnishing the collateral. Bank Carrying Balances at December 31, 1987 are as follows: Balance Amount (1) Insured or collateralized by securities held by the City or its agent in the City's name $2,000,437 $1,923,246 (2) Collateralized with securities held by the pledging institution's trust department in the City's name 0 0 (3) Uncollateralized or collateralized with securities not in the City's name 0 0 Totals $ $1,923,246 Categories 2 and 3 are not procedures that are authorized by Minnesota statutes. Investments The City is authorized by Minnesota Statutes to invest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies. (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. (c) General obligations of the State of Minnesota or any of its municipalities. (d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. (e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. (1) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. (g) Future contracts sold under authority of Minnesota Statutes 471.56, subd. 5.