26BUDGET(FULL-LINKED) - Flipbook - Page 270
4.
United State government or federal agency obligation repurchase agreements.
Repurchase agreements shall be negotiated only with dealers or financial institutions
with whom the City has negotiated a Master Repurchase Agreementor with the City's
primary financial institutions. Repurchase agreements must be signed with the bank or
dealer and must contain certain provisions similar to thoseoutlined in the Public
Security Association's model Master Repurchase Agreement.
5.
Banker's acceptances of United States banks.
6.
Mutual Funds composed of investment vehicles which are legal in the State of
Michigan for direct investment by local units of government. For further
clarification, this authorization is limited to securities whose intention is to
maintain a net asset value of $1.00 per share.
7.
Obligations of the State of Michigan or any of its political subdivisions that at the time of
purchase are rated as investment grade by not less than one standard rating service.
8.
Investments described in 4.8.a through 4.8.g above, if purchased through an inter-local
agreement under the urban Cooperative Act of 1967, (EX SESS) PA 7, MCL124.501
to 124.512.
9.
Investment Pools organized under the surplus funds investment pool act 1982 PA 367,
MCL 129.111 to 129.118 and the local government investment pool act 1985PA 121,
MCL 129.141 to 129.150. A due diligence standard must apply prior to investing in all
bank sponsored or money market investment pools.
4.9
MONEY MARKET MUTUAL FUNDS
Investments in money market mutual funds registered under the Investment Company Act of
1940 composed of investment vehicles that are legal for direct investment by local governments
in Michigan and which are "no-load" (i.e., no commission or fee shall be charged on purchases or
sales of shares); have a constant net asset value per share of $1.00; and have a maximum stated
maturity and weighted average maturity in accordance with Rule 2a-7 of the Investment
Company Act of 1940.
4.10
SAFEKEEPING AND CUSTODY
1.
All securities purchased by the City of Plymouth will be properly designated as an
asset of the City and held in safekeeping. No withdrawal of such securities, in
whole or in part, will be made from safekeeping except by the investment officer
as authorized herein.
2.
INVPOL25
Transactions in negotiable instruments which have a value exceeding SIPC
insurance protection, and other applicable insurance protection, with any
one dealer will be required to be settled on a delivery vs. payment basis. A
trust receipt from the contra party and proof of SIPC and other insurance
will be required when the transaction is covered by insurance. In accordance
with State of Michigan law, collateralization of deposits is not required;
non-negotiable, non-collateralized certificates of deposit will be evidenced
by a safekeeping receipt from the issuing bank. Collateralization is also not
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