1991-029 Council Resolution - Laserfiche WebLink

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b. Any national or state bank in the U.S. that is a member of the Federal Reserve System and whose combined capital and surplus equals or exceeds $10,000.000. V. SPECIAL REQUIREMENTS FOR CERTAIN INVESTMENTS A. Certificates of Deposits 1. Certificates of deposit shall not exceed the amount of F.D.I.C. insurance covering such deposit unless collateral or a bond is furnished as additional security. Except for notes secured by first mortgages, the total amount of collateral computed at its market value shall be at least ten percent more than the amount or deposit in excess of the insured portion. 2. The total amount of collateral consisting of notes secured by first mortgages of future maturity, computed at its market value shall be at least forty percent more than the amount on deposit in excess of the insured portion. 3. The collateral so deposited shall be assigned to the City of Lino Lakes from the depository. B. Bankers Acceptances 1. Bankers Acceptances shall be restricted to those of United States banks eligible for purchase by the Federal Reserve System. C. COMMERCIAL Paper 1. Commercial paper shall be restricted to issues that have a rating of A-1 by Moody's and P1 by Standard and Poors and mature in 270 days or less. 2. Commercial paper shall be purchased only from dealers who report to the Federal Reserve Bank of New York or from qualifying banks. VII. ADMINISTRATIVE PROCESS The City of Lino Lakes investment program should have four basic ingredients: legality, safety, liquidity, and yield. Cash management is also an essential ingredient to a good investment program. The Finance Department has the responsibility to establish procedures for effective cash management. These procedures will be maintained by the Accountant and reviewed with the City Administrator, at a minimum, on an annual basis to determine applicability.