12-10-14 Meeting of the La Porte Redevelopment Authority minutes

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LA PORTE REDEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 3012014 NOTE 3. DEPOSI<'TS AND INVESTMENTS (Continued) Investments Under Texas statute, the Authority is required to invest its funds under written investment policies that primarily emphasize safety of principal and liquidity and that address investment diversification, yield, maturity, and the quality and capability of investment managemeik#d all ". Authority hands must be invested in accordance with the following investment abje'ctives: understanding the suitability of the investment to the Authority's financial requipemeeSs,yfirst; preservation and safety of principal, second; liquidity, third; marketability of t�I -1tments if the need arises to liquidate the investment before maturity, fourth; ,di' sification of the investment portfolio, fifth; and yield, sixth. Authority's investments a "with judgment and care, under prevailing circumstances, that a person of prtadence, discretion, and intelligence would exercise in the management of the person's owi�i aw rr s 'not for speculation, but for investment, considering the probable safety of capitalhind theyprobable income to be derived." No person may invest Authority funds without ^expr�'s written authority from the Board of Directors.'* Texas statutes include specifications for and limitations applicable to the Authority and its authority to purchase investments as defined intithe Public Funds Investment Act. Authorized investments are summarized as follows: 1 lilt �at� ons of the United States or its agencies and ( )to g � �., g instrumentalities, (2) direct obligations of the, State,ohexas or its agencies and instrumentalities, (3) certain collateralized mortgage obligatio is (! )lother obligations, the principal of and interest on which are unconditionally guarante'ed''oT, insured by the State of Texas or the United States or its agencies and instrumentalities?,=' cludin g/©bligations that are fully guaranteed or insured by the Federal Deposit Insurance Copp.. raf oz or by the explicit full faith and credit of the United States, (5) certain A rated or hzgber_o'bligations of states, agencies, counties, cities, and other political subdivisions of axy'tate (6) bonds insured, assumed or guaranteed by the State of Israel, (7) insured or do,llateral zed certificates of deposit, (8) certain fully collateralized repurchase agreemggts secured by delivery, (9) certain bankers' acceptances with limitations, (10) commercialn.,p4penratedA-1 or P-1 or higher and a maturity of 270 days or Iess, (11) no- load money. akbt mutual funds and no-load mutual funds with limitations, (12) celtain guaranteed investment contracts (I3) certain qualified governmental investment pools and (14) a qualified_secutles lending program. 2014, the Authority held no investments. -17-