06-20-07 FPAC Minutes - Laserfiche WebLink

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repurchase agreements,wire transfer agreements,and collateral/depository agreements. [Please refer to GFOA's Investment Procedures Manual, 2003.1 No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the investment officer. The investment officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. V. Authorized Financial Institutions,Depositories,and Broker/Dealers 1. Authorized Financial Institutions,Depositories, and Broker/Dealers A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by creditworthiness(e.g., a minimum capital requirement of$10,000,000 and at least five years of operation). These may include "primary"dealers or regional dealers that qualify under Securities and Exchange Commission(SEC)Rule 15C3-1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate: • Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines • Proof of National Association of Securities Dealers(NASD)certification(not applicable to Certificate of Deposit counterparties) • Proof of state registration • Completed broker/dealer questionnaire(not applicable to Certificate of Deposit counterparties) • Certification of having read and understood and agreeing to comply with the [entity's] investment • policy. • Evidence of adequate insurance coverage. An annual review of the financial condition and registration of all qualified financial institutions and broker/dealers will be conducted by the investment officer. (See Appendix for the GFOA Recommended Practice on"Governmental Relationships with Securities Dealers.") 2. Minority and Community Financial Institutions From time to time, the investment officer may choose to invest in instruments offered by minority and community financial institutions. In such situations, a waiver to certain parts of the criteria under Paragraph 1 may be granted. All terms and relationships will be fully disclosed prior to purchase and will be reported to the appropriate entity on a consistent basis and should be consistent with state or local law. These types of investment purchases should be approved by the appropriate legislative or governing body in advance. VI. Safekeeping and Custody 1. Delivery vs. Payment All trades of marketable securities will be executed by delivery vs.payment(DVP)to ensure that securities are deposited in an eligible financial institution prior to the release of funds. 2. Safekeeping Securities will be held by a [centralized] independent third-party custodian selected by the entity as • evidenced by safekeeping receipts in the[entity's]name. The safekeeping institution shall annually