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<br />B. The standard of care to be used by investment officials <br />s ha 11 be that of the "prudent person, II whi ch an overall <br />portfo 1 i o. ,Investment offi cers acti ng in accordance with <br />written procedures and exercising due diligence shall be <br />relieved of personal responsibility for losses resulting <br />from an i ndi vi dua 1 security, provi ded that devi ati ons from <br />expectation are reported in a timely fashion and <br />appropriate action is taken to control adverse <br />developments. <br /> <br />C. Investments shall be made in accordance with the Public <br />Funds Investment Act of 1987 as recorded in Article <br />842a-2, Sections 1-7 of Vernon's Civil Statutes. <br /> <br />D. Management responsibility for the investment process shall <br />rest with the City's Director of Finance. <br /> <br />E. The City's investments shall be revi ewed annually by the <br />Citt s independent audi tor as part of the annual audit <br />process. Any irregularities shall be reported directly to <br />the City Council through the audit report and/or verbally <br />through attendance at a regular or special City Council <br />meeting. <br /> <br />F. The City shall deposit its funds only in deposit accounts <br />that ..::are insured by the Federal Deposit Insurance <br />Corporation or fully collaterized by securities which are <br />authorized by law to be used to collateralize the City's <br />deposits. <br /> <br />G. The City shall not purchase or sell any securiti es issued <br />or guaranteed by the Federal government from or to any <br />person (other than a depos itory i nstituti on meeti ng the <br />requirements of "F" above) unless such person is a primary <br />dealer or is a securities dealer (1) which is registered <br />under the provisions of Section 15 of the Securities <br />Exchange Act of 1934 (2) which is registered as a <br />securities dealer under the Securities Act of the State of <br />Texas. <br /> <br />H. In all cases in which the City purchases securities, <br />i nc 1 udi ng purchase under repurchase agreements, the Ci ty <br />must receive delivery of the securities prior to or at the <br />same time as it releases its funds for payment. In all <br />cases in which the City sells securities, including sales <br />under reverse repurchase agreements, the City must receive <br />payment in full for the securities prior to or at the same <br />time as it delivers the securities to the buyer. <br /> <br />I. In order to insure safety of principal, and to insure that <br />any Repurchase Agreement entered into by the City with any <br />Person wi 11 be characteri zed as a purchase and a <br />subsequent resale of a security by the City rather than as <br /> <br />21:01-3 <br />