2009-07-13 Regular Meeting and Workshop Meeting of La Porte City Counci

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c) secured in any other manner and amount provided by law for deposits of the investing entity. C. Repurchase Agreements 1. A fully collateralized repurchase agreement is an authorized investment under this Subsection if the repurchase agreement: a) has a defined termination date; b) is secured by obligations described by Section 2256.009 (a)(1); and c) requires the securities being purchased by the entity to be pledged to the entity, held in the entity's name, and deposited at the time the investment is made with the entity or with a third party selected and approved by the entity; and d) is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state. e) repurchase agreements and reverse repurchase agreements shall be entered into only with dealers who have executed a Master Repurchase Agreement with the City. 2. In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date obligations described by Subsection A, ],a), at a market value at the time the funds are disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement. 3. Notwithstanding any other law, the term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. 4. Money received by an entity 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. D. Banker's Acceptances 1. A banker's acceptance is an authorized investment under this subchapter if the banker's acceptance: a) has a stated maturity of 270 days or fewer from the date of its issuance; b) will be, in accordance with its terms, liquidated in full at maturity; c) is eligible for collateral for borrowing from a Federal Reserve Bank; and d) is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less that A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency.