06-20-07 FPAC Minutes - Laserfiche WebLink

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a) the long-term senior unsecured debt of the issuer or guarantor is rated, or obligations backed by letters of credit of the issuer III or guarantor if forming the primary basis of a rating of such obligations would be rated, in the highest or next highest rating category of Standard & Poor's Corporation, Moody's Investors Service, Inc., or a similar nationally recognized rating agency, or b) if the issuer is a bank with headquarters in Minnesota, the long-term senior unsecured debt of the issuer is rated, or obligations backed by letters of credit of the issuer if forming the primary basis of a rating of such obligations would be rated in one of the three highest rating categories of Standard & Poor's Corporation, Moody's Investor Service, Inc., or a similar nationally recognized rating agency. 2) if it is a short-term gic, the short-term unsecured debt of the issuer or guarantor is rated, or obligations backed by letters of credit of the issuer or guarantor if forming the primary basis of a rating of such obligations would be rated, in the highest two rating categories of Standard & Poor's corporation, Moody's Investors Service, Inc., or similar nationally recognized rating agency. H. Certificates of deposit at state and federally chartered banks and savings and loan associations. All investments made under this subsection shall be limited to the amount of Federal Deposit Insurance Corporation or the . Federal Savings and Loan Insurance Corporation or shall be secured in the manner set forth in Minnesota statute 118.005. The certificate of deposit should be in the form of a discounted security maturing in the amount not to exceed the insurance coverage or in the amount so that at any time the face amount together with any accrued interest does not exceed the insurance coverage. I. The Finance Director will not purchase securities that are considered highly sensitive. A highly sensitive investment is a debt instrument with contract terms that make the investment's fair value highly sensitive to interest rate changes. Examples include range notes and index amortizing notes, step-up notes and bonds, variable-rate investments with coupon multipliers, and coupons that vary inversely with a benchmark index. J. The Finance Director will not purchase securities that could expose the City to foreign currency risk. 5. SAFEKEEPING AND CUSTODY Investments may be held in safekeeping with: A. Any Federal Reserve Bank, 1110