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LA PORTE REDEVELOPMENT AUTHORITY <br />NOTES TO THE FINANCIAL STATEMENTS <br />SEPTEMBER 30, 2019 <br />NOTE 3. DEPOSITS AND INVESTMENTS (Continued) <br />Investments <br />Under Texas statute, the Authority is required to invest its funds under written investment <br />policies that primarily emphasize safety of principal and liquidity and that address investment <br />diversification, yield, maturity, and the quality and capability of investment managementatd� all <br />Authority funds must be invested in accordance with the following investment?bjecti'ves: <br />understanding the suitability of the investment to the Authority's financial requiregie its, first; <br />c� <br />preservation and safety of principal, second; liquidity, third; marketability of thpees ants if <br />the need arises to liquidate the investment before maturity, fourth; div rs f!eafion of the <br />investment portfolio, fifth; and yield, sixth. Authority's investments MASI e made "with <br />judgment and care, under prevailing circumstances, that a person p6rkudVee, discretion, and <br />intelligence would exercise in the management of the person's oWn affaifs; not for speculation, <br />but for investment, considering the probable safety of capital and the probable income to be <br />derived." No person may invest Authority funds without express- -written authority from the <br />Board of Directors. <br />Texas statutes include specifications for and limitations applicable to the Authority and its <br />authority to purchase investments as defined in the Public Funds Investment Act. Authorized <br />investments are summarized as follows: (1) obh atighs of the United States or its agencies and <br />instrumentalities, (2) direct obligations of the afe._of Texas or its agencies and instrumentalities, <br />(3) certain collateralized mortgage obligalionk4) other obligations, the principal of and interest <br />on which are unconditionally guaranteed-dripsured by the State of Texas or the United States or <br />its agencies and instrumentalities, ifietudifig dbligations that are fully guaranteed or insured by <br />the Federal Deposit Insurance Corpbraflbfi or by the explicit full faith and credit of the United <br />States, (5) certain A rated ogjhir_bligations of states, agencies, counties, cities, and other <br />political subdivisions of arty sfat, (6) bonds insured, assumed or guaranteed by the State of <br />Israel, (7) insured or collate�alrzed certificates of deposit, (8) certain fully collateralized <br />repurchase agreements secured by delivery, (9) certain bankers' acceptances with limitations, <br />(10) commercial Viper rated A-1 or P-1 or higher and a maturity of 270 days or less, (11) no- <br />load money m kei , mutual funds and no-load mutual funds with limitations, (12) certain <br />guaranteed investihe, -contracts (13) certain qualified governmental investment pools and (14) a <br />qualified sec toss lending program. <br />�. <br />At Septnbi�f 30, 2019, the Authority held no investments. <br />-17- <br />