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collateralized mortgage obligations that have a final stated maturity date of greater <br />than10 years; and <br />collateralized mortgage obligations, the interest rate of which is determined by an <br />index that adjusts opposite to the changes in a market index. <br />B.Fully collateralized certificatesof deposit issued by a depository institution or an approved <br />broker that has its main office or branch office in Texas, selected from a list adopted by the <br />City,andguaranteed or insured by the Federal Deposit Insurance Corporation or its successor <br />or the National Credit Union Share Insurance Fund orits successor;secured by obligations <br />authorized by this subchapter, or secured in any other manner and amount provided by law <br />for deposits of the City.(Section 2256.010of the Act) <br />C.FDIC insured, brokered certificates of deposit securities from a bank in any USstate, <br />delivered versus payment to the City safekeeping agent, not to exceed one year to maturity. <br />Before purchase, the Investment Officer must verify the FDIC status of the bank on <br />www.fdic.govto assure thatthe bank is FDIC insured. <br />D.AAA-rated, or an equivalent rating, no-load money market mutual fundsregistered with and <br />regulated by the Securities and Exchange Commission;havinga dollar-weighted average <br />stated maturity of 90 days or fewer; andincludes inits investment objectives the maintenance <br />of a stable net asset value of $1 for each share.(Section 2256.014of the Act)The Fund must <br />provide the Citywith a prospectus and other information required by the Securities and <br />Exchange Act of 1934 (15 U.S.C. Section 80a-1 et seq.); <br />The Cityis not authorized by Section 2256.014 (c)of the Actto: <br />invest in the aggregate more than 15 percent of its monthly average fund balance, <br />excluding bond proceeds and reserves in other funds held for debt service, in mutual <br />funds described inthe Act(Section 2256.014); <br />invest any portion of bond proceeds, reserves and funds held for debt service, in <br />mutual funds described in the Act (Section 2256.014);or <br />invest its funds or funds under its control, including bond proceeds and reserves and <br />other funds held for debt service, in any one mutual fund described in the Act <br />(Section 2256.014)in an amount that exceeds 10 percent of the total assets of the <br />mutual fund. <br />E.AAA-rated, or an equivalent rating by at least one nationally recognized rating service, <br />constant dollar, investment poolsas authorized by the City Council and as further defined by <br />the Act, which invests in eligible securities as authorized by Section 2256.016 of the Act. <br />EXISTING INVESTMENTSThe Investment Officer is not required to liquidate investments <br />that were authorized investments at the time of purchase. Any investments currently held that do <br />not meet the guidelines of this policy shall be reviewed to determine the ability to liquidate. An <br />investment that requires a minimum rating under this subchapter does not qualify as an authorized <br />investment during the period the investment does not have the minimum rating. An entity shall <br />take all prudent measures that are consistent with its investment policy to liquidate an investment <br />that does not have the minimum rating. If the investment cannot be liquidated because of <br />material adverse change in the value since the time of purchase, and holding the investment to <br />maturity does not negatively affect disbursements or cash flow, a recommendation of holding said <br />investment to maturity is acceptable. <br />5 <br /> <br />