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LA PORTE REDEVELOPMENT AUTHORITY <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />SEPTEMBER 30, 2012 <br />NOTE 3. DEPOSITS AND INVESTMENTS (Continued) <br />Investments (Continued) <br />investment portfolio, fifth; and yield, sixth. Authority's investments musts lie mmade "with <br />judgment and care, under prevailing circumstances, that a person of prudence `.. '§eretion, and <br />intelligence would exercise in the management of the person's own affairstbt_Jor speculation, <br />but for investment, considering the probable safety of capital and the.,;pirol"abi income to be <br />derived." No person may invest Authority funds without express vrtleii 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 FUirids Investment Act. Authorized <br />investments are summarized as follows: (1) obligations ofcthe United States or its agencies and <br />instrumentalities, (2) direct obligations of the State ofTexas or its agencies and instrumentalities, <br />(3) certain collateralized mortgage obligations, (4) other''obligations, the principal of and interest <br />on which are unconditionally guaranteed or insured by the State of Texas or the United States or <br />its agencies and instrumentalities, including,,6,bligations that are fully guaranteed or insured by <br />:r <br />the Federal Deposit Insurance Corporation; vrjby the explicit full faith and credit of the United <br />States, (5) certain A rated or higher,:,obligaii'ons of states, agencies, counties, cities, and other <br />political subdivisions of any stated}(.6) ;bonds insured, assumed or guaranteed by the State of <br />Israel, (7) insured or collateralized`„certificates of deposit, (8) certain fully collateralized <br />repurchase agreements secilred_by.delivery, (9) certain bankers' acceptances with limitations, <br />(10) commercial paper ratedrt'A-.1 or P-I or higher and a maturity of 270 days or less, (11) no- <br />load money market mutual '��'fi nds and no-load mutual funds with limitations, (12) certain <br />guaranteed investment contracts (13) certain qualified governmental investment pools and (14) a <br />_ I4�n � <br />qualified securities Icnding program. <br />At September 30, 2012, the Authority held no investments. <br />NOTE4.;y'` DUE TO DEVELOPERS <br />The Redevelopment Authority is a party to several agreements with Developers who own <br />property in the La Porte Tax Increment Reinvestment Zone No. 1. The Authority is obligated to <br />repay the Developers for public improvements made on the property up to the amount of <br />incremental tax value gained. <br />The Authority has entered into agreements with the following Developers: Port Crossing Land, <br />LP; 65 La Porte, Ltd.; and Retreat at Bay Forest, LP. Part Crossing Land, LP has completed the <br />public improvements detailed in the agreement with the Authority. Port Crossing Land, LP's <br />reimbursable expenditures totaled $12,096,488 including interest at May 27, 2009. In the current <br />-17- <br />