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Risks and Prudence: 110 <br /> This policy recognizes that risk is inherent in the investment world. Investment risks can <br /> result from issuer defaults or market price changes. The Minnesota Statutes governing <br /> permissible investments is designed to control risk to some degree. The Treasurer is <br /> expected to display prudence in the selection of securities,as a way to minimize default <br /> risk. No individual transaction shall be undertaken which jeopardizes the total capital <br /> position of the overall portfolio. In the event of a default by a specific issuer,the <br /> Treasurer shall review,and if appropriate,proceed to liquidate securities having <br /> comparable credit risks. <br /> • <br /> Investment officers acting in accordance with written procedures,the investment policy, <br /> and appropriate state regulations shall be relieved of personal responsibility for individual <br /> credit risk or market price changes,provided that reasonable action is taken to control <br /> adverse developments and all reporting requirements as stated herein are complied with. <br /> Ethics and Conflict of Interest: <br /> Officers and employees involved in the investment process,or in reviewing same,shall <br /> refrain from personal activity that could conflict with proper execution of the investment <br /> program,or which could impair their ability to make impartial investment decisions. <br /> Employees, investment officials,City Council and members of the Finance Committee <br /> shall disclose to the City Council any material financial interest in brokerage firms or <br /> other financial institutions that conduct business with the City,and they shall furtherID <br /> disclose any large personal financial/investment positions that could be related to the <br /> performance of the City's portfolio,Employees and officers shall subordinate their <br /> personal investment transactions to those of the City,particularly with regard to the time <br /> of purchases and sales. <br /> DeIetation of Authority: <br /> Authority to manage the City's investment program is derived from M.S. 412.141. <br /> (Treasurer's Duties)and M.S.471.56(Municipal Funds). <br /> Management responsibility for the investment program is hereby delegated to the <br /> Treasurer who shall,on behalf of the City Council,establish written procedures for the <br /> operation of the investment program consistent with this investment policy. In the <br /> absence of the Treasurer,the City staff so designated in the procedure shall exercise the <br /> same authority,with the exception of extending maturities. No person may engage in an <br /> investment transaction except as provided under the terms of this policy and the <br /> procedures established by the Treasurer. <br /> • <br /> 2 <br />