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

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The City shall select financial institutions from which the City may purchase certificates of deposit in accordance with the Act and this policy and will have a written depository agreement with the selected institution. The Investment Officer shall monitor the fiscal condition of financial institutions where certificates of deposit are held. INSURABILITY Banks and Savings & Loans Associations seeking to establish eligibility for PRIMARY DEALERS AND APPROVED LIST AUTHORIZED FINANCIAL BROKER/DEALERS AND INSTITUTIONS The Investment Officer shall maintain a list of broker /dealers and financial institutions authorized to provide investment services. These may include primary dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3 -1 (uniform net capital rule). For brokers and dealers of government securities, .. e .. - - ' - - Federal Reserve Bank of New York, also known as "primary government . securities dealers," .. • . ... • .. • • - . All financial institutions and broker /dealers who desire to become qualified bidders for investment transactions must submit: audited financial statements, proof of National Association of Security Dealers certification, and proof of state registration. Before engaging in investment transactions with a financial institutions or broker /dealers, the Investment Officer shall have received, from a Qualified Representative of said firm, a signed Certification Form. (Exhibit B) This form shall attest that the individual responsible for the City's account with that firm has (1) received and reviewed the investment policy of the entityCity; and (2) acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the entity City and the organization that are not authorized by the entity's City's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the entity's City's entire portfolio or requires an interpretation of subjective investment standards. Investment Officers of the City may not acquire or otherwise obtain any authorized investment described in the investment policy from a person who has not delivered a signed Certification Form. The Fiscal Affairs Committee shall at least annually review, revise, and adopt a list of qualified broker /dealerss and other financial institutions that are authorized to engage in investment transactions with the City. (Exhibit A) COMPETITIVE BIDDING All investment transactions must be competitively transacted and executed with broker /dealers or financial institutions that have been authorized by the City. The City will obtain at least three competitive offers. Exception: New issues will not be required to be competitively transacted as all broker /dealers would show the same price and yield. IXVIII.. • .. .. ' . • ! .. ! ! COLLATERAL INSURANCE OR COLLATERALIZATION OF PUBLIC DEPOSITS Collateralization requirements are governed by the Texas Government Code Chapter 2257 (Public Funds Collateral Act). All bank deposits, certificates of deposit, and repurchase agreements shall be 10