07 - City Investment Policy 2023

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7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Finance Director will maintain a list'of financial institutions authorized to provide investment services. No public deposit shall be made except in a qualified public depository as established by state law. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Finance Director with the following: audited financial statement, proof of National Association of Security Dealers certification, trading resolution, proof of state registration, completed broker/dealer questionnaire if requested, and certification of having read entity's investment policy. An annual review of the'financial condition'and registrations of qualified bidderswill be conducted by the Finance Director. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the City of Paris invests. 8.0 AUTHORIZED/SUITABLE INVESTMENTS The City of Paris is empowered by statue to invest in the Types of securities authorized by Chapter 2256 of the Government Code. Even if allowed by the Public Funds Investment Act, the City of Paris will not invest in securities known as "collateralized debt obligations" which are pools of debt that include sub- prime mortgages. 9.0 COLLATERALIZATION Collateralization will be required on two types of investments: certificates of deposit and repurchase (and reverse) agreements. In order to anticipate market changes and provide, a level of security for all funds, the collateralization level will be 100% of market value of principal and. accrued interest. The City of Paris chooses to limit collateral to the extent it is limited by Article 105 Revised Civil Statues of. Texas. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted. 10.0 SAFEKEEPING AND CUSTODY; All security transactions, .including collateral for repurchase agreements, entered .into by the City of Paris shall be conducted on.a delivery -versus -payment (DVP) basis. Securities will be held by a third party custodian designated by the Finance,.Director and evidenced -by safekeeping receipts. 11.0 DIVERSIFICATION The. City of Paris will diversify its investments by security type and institution. With the exception of obligations of the United States or its agencies and authorized pools, no more than 50% of the City of Paris total investment portfolio will be invested in a single financial institution with the exception of its local depository. 12.0 MAXIMUM MATURITIES