Laserfiche WebLink
<br />e <br /> <br />e <br /> <br />VII. SAFEKEEPING AND CUSTODY <br /> <br />INSURANCE OR COLLATERAL All deposits and investments of City funds <br />other than direct purchases of U.S. Treasuries or U.S. Agencies shall be <br />secured by pledged collateral with a market value equal to no less than 100% <br />of the deposits or investments less an amount insured by the FDIC or FSLlC. <br />Evidence of the pledged collateral shall be maintained by the Director of <br />Finance or a third party financial institution. .Repurchase agreements shall be <br />documented by specific agreement noting the collateral pledged in each <br />agreement. Collateral shall be reviewed monthly to assure the market value of <br />the securities pledged equals or exceeds the related bank balances. <br /> <br />SAFEKEEPING AGREEMENT All safekeeping arrangements shall be in <br />accordance with a Safekeeping Agreement approved by the Audit Committee <br />which clearly defines the procedural steps for gaining access to the collateral <br />should the City of La Porte determine that the City's funds are in jeopardy. <br />The safekeeping institution, or Trustee, shall be the Federal Reserve Bank or <br />an institution not affiliated with the firm pledging the collateral. The <br />safekeeping agreement shall include the signatures of the City of La Porte, the <br />firm pledging the collateral, and the Trustee. <br /> <br />COLLATERAL DEFINED The City of La Porte shall accept only the following <br />securities as collateral: <br /> <br />A. FDIC and FSLlC insurance coverage; <br /> <br />B. United States Treasuries and Agencies; <br /> <br />C. Texas State, City, County, School or Road District bonds with a <br />remaining maturity of ten (10) years or less with rating from a nationally <br />recognized investment rating firm and having received a rating of not less <br />than A or its equivalent; <br /> <br />D. Other securities as approved by the Audit Committee. <br /> <br />SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by <br />the Director of Finance or the City's independent auditors. <br /> <br />DELIVERY VERSUS PAYMENT Treasury Bills, Notes & Bonds and <br />Government Agencies' securities shall be purchased using the delivery versus <br />payment method. That is, funds shall not be wired or paid until verification has <br />been made that the collateral was received by the Trustee. The collateral shall <br />be held in the name of the City or held on behalf of the City. The Trustee's <br />records shall assure the notation of the City's ownership of or explicit claim on <br />the securities. The original copy of all safekeeping receipts shall be delivered <br />to the City. <br /> <br />6 <br />