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include all information as required by Section 2256.023 of the Act. It must also express <br />compliance of the portfolio to the investment strategy contained in the City’s Investment Policy <br />and the Act. <br />MONITORINGThe market price of each investment shall be obtained monthly from a source <br />such as the Wall Street Journal newspaper,the City’s custodial bank,a reputable brokerage firm <br />or security pricing service and reported on the investment reports.Investments with minimum <br />rating requirements will be monitored for rate changes and liquidation of such investments will be <br />determined at such time. <br />Monitoring credit ratings –The Investment Officer shall monitor, on no less than a monthly basis, <br />the credit rating on all authorized investments in the portfolio based upon independent <br />information from a nationally recognized rating agency. If any security falls below the minimum <br />rating required by Policy, the Investment Officer shall notify the City Manager of the loss of <br />rating, and liquidate the investment within one week. <br />Monitoring FDIC Status for Mergers and Acquisitions –The Investment Officer shall monitor, on <br />no less than a weekly basis, the status and ownership of all banks issuing brokered CDs owned by <br />the City based upon information from the FDIC. If any bank has been acquired or merged with <br />another bank in which brokered CDs are owned, the Investment Officer or Advisor shall <br />immediately liquidate any brokered CD which places the City above the FDIC insurance level. <br />INVESTMENTS <br />VI. <br />ACTIVE PORTFOLIO MANAGEMENTThe City intends to pursue active versus passive <br />portfolio management philosophy. That is, securities may be sold before they mature if market <br />conditions present an opportunity for the City to benefit from the trade. <br />AUTHORIZED INVESTMENTSThe following are authorized investments for the City andall <br />are authorized and further defined by the Act. Only those investments listed in this section are <br />authorized. <br />A.Obligations, including letters of credit, of the United States or its agencies and <br />instrumentalities;direct obligations of this state or its agencies and instrumentalities;other <br />obligations, the principal and interest of which are unconditionally guaranteed or insured by, <br />or backed by the full faith and credit of, this state or the United States or their respective <br />agencies and instrumentalities, including obligations that are fully guaranteed or insured by <br />the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United <br />States; andobligations of states, agencies, counties, cities, and other political subdivisions of <br />any state rated as to investment quality by a nationally recognized investment rating firm not <br />less than A or its equivalent.(Section 2256.009 (a)of the Act) <br />The following are not authorized investments under Section2256.009 (b)of the Act: <br />obligations whose payment represents the coupon payment on the outstanding <br />principal balance of the underlying mortgage-backed security collateral and pays not <br />principal (Interest only bonded); <br />obligations whose payment represents the principal stream of cash from the <br />underlying mortgage-backed security collateral and pays no interest (Principal only <br />bonds); <br />4 <br /> <br />