05-23-11 Regular Meeting of La Porte City Council

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• obligations whose payment represents the principal stream of cash from the underlying mortgage- backed security collateral and pays no interest (Principal only bonds); • collateralized mortgage obligations that have a final stated maturity date of greater thatthan 10 years; and • collateralized mortgage obligations, the interest rate of which is determined by an index that adjusts opposite to the changes in a market 137—fully collateralized C-certificates of Ddeposit and Share Certificates issued by a depository institution that has its main office or branch office in this state Texas ands guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; secured by obligations authorized by this subchapter, - . . .. • _ : :. cribcd by Section 2256.009 (a), including mortgage • . • • - • .. amount of the certificates, but excluding those mortgage backed securities of the nature described by Scction 2256.009 (b); or or secured in any other manner and amount provided by law for deposits of the investing entityCity. (Section 2256.010 of the Act) .C—Fully collateralized Repurchase Agreements with if the repurchase agreement: ... . has a defined termination date; and is-secured by obligations described by the Act (Section 2256.009 (a)(1) »; such collateral, and ..• - -- - . ' - .. ... : -- -- • _ . -- -- , held in the entity's City's name, and deposited at the time the investment is made with the entity -City or with -aan independent third party selected and approved by the entityCity--and, Repurchase agreements must be ii -plied purchased through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this statoTexas. repurchase Repurchase agreements and reverse repurchase agreements shall be entered into only with dealers who have executed a Master Repurchase Agreement with the City. In this section, "repurchase agfcement" means a simultaneous agreement to buy, hold for a .. - .. . . .. - .. - .. •_ . . •. . ... - •- , • funds disbursed. The tcrm includes a direct security repurchase agreement and a reverse security repurchase agreement. • • • - _ - - : , The term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. Money received by an-- entitythe City under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments, but the term of the authorized - investments acquired must mature no later than the expiration date stated in the reverse security repurchase agreement. (Section 2256.011 of the Act) D: Banker's Aacceptances acceptance: has-with a stated maturity of 270 days or fewer from the date of its issuance; 5