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depositsthatareguaranteedorinsuredby:theFederalDepositInsuranceCorporationor <br />itssuccessor;ortheNationalCreditUnionShareInsuranceFundoritssuccessor.(Section <br />2256.009(a)oftheAct) <br />ThefollowingarenotauthorizedinvestmentsunderSection2256.009(b)oftheAct: <br /> obligationswhosepaymentrepresentsthecouponpaymentontheoutstanding <br />principalbalanceoftheunderlyingmortgagebackedsecuritycollateralandpaysnot <br />principal(Interestonlybonded); <br /> obligationswhosepaymentrepresentstheprincipalstreamofcashfromthe <br />underlyingmortgagebackedsecuritycollateralandpaysnointerest(Principalonly <br />bonds); <br /> collateralizedmortgageobligationsthathaveafinalstatedmaturitydateofgreater <br />than10years;and <br /> collateralizedmortgageobligations,theinterestrateofwhichisdeterminedbyan <br />indexthatadjustsoppositetothechangesinamarketindex. <br />B. CERTIFICATESOFDEPOSIT <br />Fullycollateralizedcertificatesofdepositissuedbyadepositoryinstitutionoran <br />approvedbrokerthathasitsmainofficeorbranchofficeinTexas,selectedfromalist <br />adoptedbytheCity,andguaranteedorinsuredbytheFederalDepositInsurance <br />CorporationoritssuccessorortheNationalCreditUnionShareInsuranceFundorits <br />successor;securedbyobligationsauthorizedbythissubchapter,orsecuredinanyother <br />mannerandamountprovidedbylawfordepositsoftheCity.DICinsured,brokered <br />certificatesofdepositsecuritiesfromadepositoryinstitutionthathasitsmainofficeora <br />branchofficeinTexas,deliveredversuspaymenttotheCitysafekeepingagent,notto <br />exceedoneyeartomaturity.Beforepurchase,theInvestmentOfficermustverifythe <br />FDICstatusofthebankonwww.fdic.govtoassurethatthebankisFDICinsured.(Section <br />2256.010oftheAct) <br />C. MONEYMARKETMUTUALFUNDS <br />Anoloadmoneymarketmutualfundispermittedasanauthorizedinvestmentifitis <br />registeredwithandregulatedbytheSecuritiesandExchangeCommission;andcomplies <br />withfederalSecuritiesandExchangeCommissionRule2a7(17C.F.R.Section270.2a7), <br />promulgatedundertheInvestmentCompanyActof1940(15U.S.C.Section80a1etseq.). <br />TheFundmustprovidetheCitywithaprospectusandotherinformationrequiredbythe <br />SecuritiesandExchangeActof1934(15U.S.C.Section78aetseq.)ortheInvestment <br />CompanyActof1940(15U.S.C.Section80a1etseq.); <br />Inadditiontoanoloadmoneymarketmutualfundpermittedasanauthorized <br />investmentasdescribedabove,anoloadmutualfundisanauthorizedinvestmentifthe <br />mutualfundisregisteredwiththeSecuritiesandExchangeCommission;hasanaverage <br />weightedaveragematurityoflessthantwoyears;andeither(1)hasadurationofone <br />yearormoreandisinvestedexclusivelyinobligationsapprovedinSubchapterAofthe <br />Act,or(2)hasadurationoflessthanoneyearandantheinvestmentportfolioislimited <br />toinvestmentgradesecurities,excludingassetbackedsecurities. <br /> <br /> <br />