26BUDGET(FULL-LINKED) - Flipbook - Page 269
3.
4.7
4.8
Employees and officers shall subordinate their personal investment transactions to
those of the City, particularly with regard to the timing of purchases and sales.
AUTHORIZED FINANCIAL DEALER AND INSTITUTIONS
1.
The City shall maintain a listing of financial institutions which are approved by
the City Commission for investment and depository purposes. Banks shall
provide their annual financial statements.
2.
A list may be maintained of approved security dealers who maintain an office in the
State of Michigan. Securities dealers not affiliated with a bank shall be required to
be classified as reporting dealers affiliated with the New York Federal Reserve
Bank as primary dealers or as "non-primary" or regional dealers that have net
capital equaling twice the amount required under Securities & Exchange
Commission Rule 15C3-1 (uniform net capital rule).
3.
All financial institutions and broker/dealers who desire to become qualified bidders for
investment transactions must supply the Finance Director with their most recent audited
financial statements, proof of State registration and depository contracts.
4.
All financial institutions, brokers and dealers that the City investment officer is
authorized to perform investment transactions with must read the City investment
policy and provide a signed letter or certification that they will comply with said
policy.
LIST OF AUTHORIZED INVESTMENTS
The City is empowered by State statutes to invest surplus funds in the following types of
securities.
1.
Bonds, securities and other obligations of the United States or an agency or
instrumentality of the United States in which the principal and interest is fully
guaranteed by the United States including securities issued by the Government
National Mortgage Association.
2.
Certificates of deposits, savings accounts, deposit accounts or depository receipts of a
bank or savings and loan association which is a member of the Federal Deposit
Insurance Corporation or a credit union which is insured by the National Credit Union
Administration; but only if the financial institution complies with subsection 129.91
(2), (5), or (6) of Public Act 20, as amended.
3.
Commercial paper rated at the time of purchase within the top two (2) highest
classifications established by not less than two (2) standard rating services, and which
matures not more than 270 days after the date of purchase. Not more than50% of
City funds may be invested in commercial paper at any time.
INVPOL25
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