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authorization is dependent on an analysis of the makeup of the City’s entire portfolio or requires <br />an interpretation of subjective investment standards.Investment Officersof the Citymay not <br />acquire or otherwise obtainany authorized investment described in the investment policy from a <br />person who has not delivered a signed Certification Form. The Fiscal Affairs Committee shall at <br />least annually review, revise, and adopt a list of qualified broker/dealersand other financial <br />institutions that are authorized to engage in investment transactions with the City. (Exhibit A) <br />COMPETITIVE BIDDINGAll investment transactions must be competitively transacted and <br />executed with broker/dealers or financial institutions that have been authorized by the City. The <br />City will obtain at least three competitive offers. Exception: New issues will not be required to <br />be competitively transacted as all broker/dealers would show the same price and yield. <br />COLLATERAL <br />VIII. <br />COLLATERALIZATION OF PUBLIC DEPOSITSCollateralization requirements are governed <br />by the Texas Government Code Chapter 2257 (Public Funds Collateral Act). All bank deposits, <br />certificates of deposit, and repurchase agreements shall be secured by pledged collateral. In order <br />to anticipate market changes and provide a level of security for all funds, the required minimum <br />collateral level will be a market value equal to noless than 102% of the deposits.Collateral <br />levels should be monitored andmaintained by the financial institution. Repurchase agreements <br />shall be documented by specific agreement noting the collateral pledged in each agreementand <br />should be monitored daily. Collateral shall be reviewed monthly to assure the market value of the <br />securities pledged equals or exceeds the related bank balances. <br />Collateral shall always be held in the City’s name by an independent third party with whom the <br />City of La Porte has a current custodial agreement. Evidence of the pledged collateral shall be <br />maintained by a written agreement. A safekeeping receipt must be supplied to the City of La <br />Porte for any transaction involving sales/purchases/maturities of securities and/or underlying <br />collateral, which the City of La Porte will retain. The right of collateral substitution is granted <br />provided the substitution has prior approval of the City and is followed by the delivery of an <br />original safekeeping receipt to the City, and replacement collateral is received prior to the release <br />of original collateral. <br />COLLATERAL DEFINEDThe City shall accept only the following securities as collateral: <br />A.FDIC insurance coverage; <br />B.United States Treasuries and Agencies; <br />C.Obligations, including letters of credit, of the United States or its agencies and <br />instrumentalities. <br />D.Other securities as approved by the Fiscal Affairs Committee. <br />SUBJECT TO AUDITAll collateral shall be subject to inspection and audit by the Director of <br />Finance or the City's independent auditors. <br />SAFEKEEPING AND CUSTODY <br />IX. <br />SAFEKEEPING AGREEMENTAll securities owned by the City shall be held in the City’s <br />designated third party safekeeping. The third party custodian shall be required to issue <br />safekeeping receipts to the City listing each specific security, description, maturity, cusip number <br />yield and/or coupon, market valueand other pertinent information. Each safekeeping receipt <br />7 <br /> <br />