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<br /> <br /> <br /> <br /> <br /> current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be <br /> supplied to the entity and retained. The right of collateral substitution is granted. <br /> <br /> 10.0 SAFEKEEPING AND CUSTODY <br /> <br /> All security transactions, including collateral for repurchase agreements, entered into by the City of <br /> Paris shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third <br /> party custodian designated by the Finance Director and evidenced by safekeeping receipts. <br /> 11.0 DIVERSIFICATION <br /> <br /> The City of Paris will diversify its investments by security type and institution. With the exception of <br /> obligations of the United States or its agencies and authorized pools, no more than 50% of the City of <br /> Paris total investment portfolio will be invested in a single financial institution with the exception of its <br /> local depository. <br /> <br /> 12.0 MAXIMUM MATURITIES <br /> To the extent possible, the City of Paris will attempt to match its investments with anticipated cash flow <br /> requirements. Unless matched to a specific cash flow, the City of Paris will not directly invest in <br /> securities maturing more than 10 years from the date of purchase. However, the City of Paris may <br /> collateralize its repurchase agreements using longer-dated investments not to exceed 15 years to <br /> maturity. <br /> <br /> Reserve funds may be invested in securities exceeding 10 years if the maturity of such investments is <br /> made to coincide as nearly as practicable with the expected use of the funds. <br /> <br /> 13.0 INTERNAL CONTROL <br /> The Finance Director shall establish an annual process of independent review by an external auditor. <br /> This review will provide internal control by assuring compliance with policies and procedures. <br /> <br /> 14.0 PERFORMANCE STANDARDS <br /> <br /> The investment portfolio shall be designed with the objective of obtaining a rate of return throughout <br /> budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow <br /> needs. <br /> <br /> 14.1 MARKET YIELD (BENCHMARK): The City of Paris investment strategy is active. Given this <br /> strategy, the basis used by the Finance Director to determine whether market yields are being achieved <br /> shall be the six-month U.S. Treasury Bill and the Average Fed Funds rate. <br /> 15.0 REPORTING <br /> <br /> The Finance Director is charged with the responsibility of including a market report on investment <br /> activity and returns in the City of Paris' Financial Report. Reports must include all information <br /> required by Section 2256.023 of the statute. <br /> <br /> 16.0 The market price of acquired investments shall be monitored by using information found in the <br /> Wall Street Journal and/or through Bloomberg Information Services, and/or through a securities <br /> dealer's trading desk. <br /> <br /> <br /> <br /> <br /> 39 <br />