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<br />Xl. any changes or addenda to the offering circular. <br /> <br />4. An entity by contract may delegate to an investment pool the authority to hold legal title <br />as custodian of investments purchased with its local funds. <br /> <br />5. In this section, "yield" shall be calculated in accordance with regulations governing the <br />registration of open-end management investment companies under the Investment <br />Company Act of 1940, as promulgated from time to time by the Federal Securities and <br />Exchange Commission. <br /> <br />6. To be eligible to receive funds from and invest funds on behalf of an entity under this <br />chapter, a public funds investment pool created to function as a money market mutual <br />fund must mark its portfolio to market daily, and, to the extent reasonably possible, <br />stabilize a $1 net asset value. If the ratio of the market value of the portfolio divided by <br />the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings <br />shall be sold as necessary to maintain the ratio between 0.995 and 1.005. <br /> <br />7. To be eligible to receive funds from and invest funds on behalf of an entity under this <br />chapter, a public funds investment pool must have an advisory board composed: <br /> <br />a) equally of participants in the pool and other persons who do not have a business <br />relationship with the pool and are qualified to advise the pool, for a public funds <br />investment pool created under Chapter 791 and managed by a state agency; or <br /> <br />b) of participants in the pool and other persons who do not have a business relationship <br />with the pool and are qualified to advise the pool, for other investment pools. <br /> <br />8. To maintain eligibility to receive funds from and invest funds on behalf of an entity under <br />this chapter, an investment pool must be continuously rated no lower that AAA or AAA- <br />m or at an equivalent rating by at least one nationally recognized rating service. <br /> <br />EXISTING INVESTMENTS Any investments currently held that do not meet the guidelines of <br />this policy shall be reviewed to determine the ability to liquidate. If the investment cannot be <br />liquidated because of material adverse change in the value since the time of purchase, and <br />holding the investment to maturity does not negatively affect disbursements or cash flow, a <br />recommendation of holding said investment to maturity is acceptable. <br /> <br />PROCUREMENT Investments of subsections A-G of this section, excluding new issues, may <br />be made only after competitive bids are solicited from at least three sources. <br /> <br />MONITORING The market value of each investment shall be obtained monthly from a source <br />such as the Wall Street Journal newspaper, a reputable brokerage firm or security pricing service <br />and reported on the monthly investment reports. <br /> <br />LENGTH OF INVESTMENTS The maximum stated maturity, from the date of purchase, for <br />any individual investment may not exceed 5 years and the maximum dollar-weighted average <br />maturity for the pooled fund group (investment portfolio) may not exceed 2 years. <br /> <br />DIVERSIFICATION It is the policy of the City of La Porte to diversify its investment <br />portfolios. Assets held in the common investment portfolio shall be diversified to eliminate the <br />