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• <br /> (1) the use of or limitation on mutual bond funds or other securities authorized or <br /> permitted investments under law; <br /> (2)specifications for and limitations on the use of derivatives; <br /> (3)the final maturity of any individual security; <br /> (4)the maximum average weighted life of the portfolio; <br /> (5)the use of and limitations on reverse repurchase agreements; <br /> (6) credit standards for financial institutions with which the government entity <br /> deals;and <br /> (7)credit standards for investments made by the government entity. <br /> Subd.3. Oversight process. Prior to exercising any authority under subdivisions 4, 5,and <br /> 6,the governmental entity must establish an oversight process that provides for review of <br /> the government entity's investment strategy and the composition of the financial portfolio. <br /> This process shall include one or more of the following: <br /> (1)audit reviews; <br /> (2)internal or external investment committee reviews;and <br /> (3)internal management control.Additionally,the governing body of the governmental <br /> • entity must, by resolution, authorize its treasurer to utilize the additional authorities <br /> under this section within their prescribed limits,and in conformance with the written <br /> limitations,policies,and procedures of the governmental entity. <br /> If the governing body of a governmental entity exercises the authority provided in this <br /> section,the treasurer of the governmental entity must annually report to the governing <br /> body on the findings of the oversight process required under this subdivision. If the <br /> governing body intends to continue to exercise the authority provided in this section for <br /> the following calendar year, it must adopt a resolution affirming that intention by <br /> December 1. <br /> Subd. 4. Repurchase agreements. A government entity may enter into repurchase <br /> agreements as authorized under section 118A.05, provided that the exclusion of <br /> mortgage-backed securities defined as "high-risk mortgage-backed securities" under <br /> section 1 18A.04, subdivision 6, shall not apply to repurchase agreements under this <br /> authority if the margin requirement is 101 percent or more. <br /> Subd. 5. Reverse repurchase agreements. Notwithstanding the limitations contained <br /> in section 118A.05, subdivision 2, the county may enter into reverse repurchase <br /> agreements to: <br /> (1)meet cash flow needs;or <br /> (2) generate cash for investments, provided that the total securities owned shall be <br /> limited to an amount not to exceed 130 percent of the annual daily average of general <br /> 7 <br /> • <br />