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<br />dealers that qualifY under Securities & Exchange Commission Rule] 5C3-1 (uniform net capital <br />rule). No public deposit shall be made except in a qualified public depository as established by <br />state law. All financial institutions and broker/dealers who desire to become qualified bidders for <br />investment transactions must supply the Finance Director with the following: audited financial <br />statement, proof of National Association of Security Dealers certification, trading resolution, <br />proof of state registration, completed broker/dealer questionnaire if requested, certification of <br />having read entity's investment policy. <br /> <br />An annual review of the financial condition and registrations of qualified bidders will be <br />conducted by the Finance Director. <br /> <br />A current audited financial statement is required to be on file for each financial institution and <br />broker/dealer in chich the City of Paris invests. <br /> <br />8.0 AUTHORlZED/ SUIT ABLE INVESTMENTS: The City of Paris is empowered by <br />statue to invest in the types of securities authorized by Chapter 2256 of the Government Code. A <br />copy is attached as exhibit A. <br /> <br />9.0 COLLATERALIZATION: Collateralization will be required on two types of <br />investments: certificates of deposit and repurchase (and reverse) agreements. In order to <br />anticipate market changes and provied a level of security for all funds, the collateralization level <br />will be 100% of market value of principal and accrued interest. <br /> <br />The City of Paris chooses to limit collateral to the extent it is limited by Article 105 Revised Civil <br />Statues of Texas. Collateral will always be held by an independent third party with whom the <br />entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping <br />receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. <br /> <br />10.0 SAFEKEEPING AND CUSTODY: All security transactions. including collateral for <br />repurchase agreements, entered into by the City of Paris shall be conduted on a delivery-versus- <br />payment (DVP) basis. Securities will be held by a third party custodian designated by the Finance <br />Director and evidenced by safekeeping receipts. <br /> <br />11.0 DIVERSIFICATION: The City of Paris will diversifY its investments by security <br />type and institution. With the exception of obligations of the United States or its agencies and <br />authorized pools, no more than 50% of the City of Paris total investment portfolio will be <br />invested in a single financial institution with the exception of its local depository. <br /> <br />12.0 MAXIMUM MATURITIES: To the extent possible, the City of Paris will attempt <br />to match its investments with anticipated cash flow requirements. Unless matched to a specific <br />cash flow. the City of Paris will not directly invest in securities maturing more than 10 years from <br />the date of purchase. However, the City of Paris may collateralize its repurchase agreements <br />using longer-dated investments not to exceed 15 years to maturity. <br /> <br />Reserve funds may be invested in securities exceeding 10 years if the maturity of such investments <br />