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a r • r LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 3. DEPOSITS AND INVESTMENTS (Continued) Investments ■ Under Texas statute, the Authority is required to invest its funds under written investment policies that primarily emphasize safety of principal and liquidity and that address investment diversification, yield, maturity, and the quality and capability of investment management, and all Authority funds must be invested in accordance with the following investment-'b.jectives: understanding the suitability of the investment to the Authority's financial requireme ts,'�first; preservation and safety of principal, second; liquidity, third; marketability of-theinvestments if the need arises to liquidate the investment before maturity, fourth; diversification of the investment portfolio, fifth; and yield, sixth. Authority's investments nust.,be made "with judgment and care, under prevailing circumstances, that a person of prud nce, discretion, and s, intelligence would exercise in the management of the person's own affai`I�Nr`s_ not for speculation, but for investment, considering the probable safety of capital ;and thdyprobable income to be derived." No person may invest Authority funds without, .express. -written authority from the Board of Directors. Texas statutes include specifications for and limitations applicable to the Authority and its authority to purchase investments as defined i4j a Public Funds Investment Act. Authorized investments are summarized as follows: (1) ,obligations of the United States or its agencies and instrumentalities, (2) direct obligations of the State,of/Texas or its agencies and instrumentalities, (3) certain collateralized mortgage obligati`ons(4) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its agencies and instrumentalities including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States, (5) certain A rated or higher. pbligations of states, agencies, counties, cities, and other political subdivisions of any',state, (6) bonds insured, assumed or guaranteed by the State of Israel, (7) insured or collateralized certificates of deposit, (8) certain fully collateralized repurchase agreements secured by delivery, (9) certain bankers' acceptances with limitations, (10) commercial,.paper rated A-1 or P-1 or higher and a maturity of 270 days or less, (11) no- load money market mutual funds and no-load mutual funds with limitations, (12) certain guaranteed investment contracts (13) certain qualified governmental investment pools and (14) a qualified -securities -lending program. f At;Septeriiber 30, 2015, the Authority held no investments. I