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COMPETITIVEBIDDINGAllinvestmenttransactionsmustbecompetitivelytransactedand <br />executedwithbroker/dealersorfinancialinstitutionsthathavebeenauthorizedbytheCity.The <br />Citywillobtainatleastthreecompetitiveoffers.Exception:Newissueswillnotberequiredto <br />becompetitivelytransactedasallbroker/dealerswouldshowthesamepriceandyield. <br />VIII.COLLATERAL <br />COLLATERALIZATIONOFPUBLICDEPOSITSCollateralizationrequirementsaregovernedbythe <br />TexasGovernmentCodeChapter2257(PublicFundsCollateralAct).Allbankdeposits,certificates <br />ofdeposit,andrepurchaseagreementsshallbesecuredbypledgedcollateral.Inorderto <br />anticipatemarketchangesandprovidealevelofsecurityforallfunds,therequiredminimum <br />collaterallevelwillbeamarketvalueequaltonolessthan102%ofthedeposits.Collaterallevels <br />shouldbemonitoredandmaintainedbythefinancialinstitution.Repurchaseagreementsshall <br />bedocumentedbyspecificagreementnotingthecollateralpledgedineachagreementandshould <br />bemonitoreddaily.Collateralshallbereviewedmonthlytoassurethemarketvalueofthe <br />securitiespledgedequalsorexceedstherelatedbankbalances. <br />Collateralshallalwaysbeheldinthe/źƷǤ͸ƭnamebyanindependentthirdpartywithwhomthe <br />CityofLaPortehasacurrentcustodialagreement.Evidenceofthepledgedcollateralshallbe <br />maintainedbyawrittenagreement.AsafekeepingreceiptmustbesuppliedtotheCityofLa <br />Porteforanytransactioninvolvingsales/purchases/maturitiesofsecuritiesand/orunderlying <br />collateral,whichtheCityofLaPortewillretain.Therightofcollateralsubstitutionisgranted <br />providedthesubstitutionhaspriorapprovaloftheCityandisfollowedbythedeliveryofan <br />originalsafekeepingreceipttotheCity,andreplacementcollateralisreceivedpriortotherelease <br />oforiginalcollateral. <br />COLLATERALDEFINEDTheCityshallacceptonlythefollowingsecuritiesascollateral: <br />A. FDICinsurancecoverage; <br />B. UnitedStatesTreasuriesandAgencies; <br />C. Obligations,includinglettersofcredit,oftheUnitedStatesoritsagenciesand <br />instrumentalities. <br />D. OthersecuritiesasapprovedbytheFiscalAffairsCommittee. <br />SUBJECTTOAUDITAllcollateralshallbesubjecttoinspectionandauditbytheDirectorofFinance <br />ortheCity'sindependentauditors. <br />IX.SAFEKEEPINGANDCUSTODY <br />SAFEKEEPINGAGREEMENTAllsecuritiesownedbytheCityshallbeheldinthe/źƷǤ͸ƭdesignated <br />thirdpartysafekeeping.Thethirdpartycustodianshallberequiredtoissuesafekeepingreceipts <br />totheCitylistingeachspecificsecurity,description,maturity,cusipnumberyieldand/orcoupon, <br />marketvalueandotherpertinentinformation.Eachsafekeepingreceiptshallclearlyindicatethat <br />theinstrumentisheldfortheCityofLaPorte.Allsafekeepingarrangementsshallbedocumented <br />bytheInvestmentOfficer. <br />DELIVERYVERSUSPAYMENTAllinvestmenttransactionsshallbeexecutedonadeliveryversus <br />paymentbasis.Thatis,fundsshallnotbewiredorpaiduntilverificationhasbeenmadethatthe <br /> <br /> <br />