Laserfiche WebLink
I AIL <br /> Investment Policy • <br /> Broker Representations <br /> Municipalities must obtain from their brokers certain representations regarding future <br /> investments. Minnesota Statutes, Section 118A,requires municipalities to provide each <br /> broker with information regarding the municipality's investment restrictions. Before <br /> engaging in investment transactions with the City of Oak Grove, the supervising officer <br /> at the securities broker/dealer shall submit a certification annually according to <br /> Minnesota Statutes 118.05. The document will state that the officer has reviewed the <br /> investment policies and objectives, as well as applicable state law, and agrees to disclose <br /> potential conflicts of interest or risk to public funds that might arise out of business <br /> transactions between the firm and the City of Oak Grove. All financial institutions shall <br /> agree to undertake reasonable efforts to preclude imprudent transactions involving the <br /> City's funds. <br /> Authorized and Suitable Investment <br /> • <br /> Minnesota Statutes, Section 118A.04, lists all permissible investments for municipalities. <br /> This list establishes the maximum investment risk permitted for a Minnesota <br /> municipality. Even though Minnesota Statutes 118A provides for more instruments to <br /> be used for investing purposes, the following is a listing of investments the City of Oak <br /> Grove will be authorized to invest in: <br /> 1) United States securities: Instruments such as governmental bonds, notes,bills, <br /> mortgages (excluding high-risk mortgage-backed securities as defined in MN Statute <br /> 118A.04, Subdivision 6), and other securities which are direct obligations or are <br /> guaranteed or insured issues of the United States, its agencies, its instrumentalities, <br /> or organizations created by an act of Congress. <br /> 2) Time deposits: . Funds may be invested in time deposits that are fully insured by the <br /> Federal Deposit Insurance Corporation(FDIC) or bankers acceptances of United <br /> States banks. <br /> 3) Commercial papers: Funds may be invested in commercial paper issued by United <br /> States corporations or their Canadian subsidiaries that is rated in the highest quality <br /> category(e.g., A-1, P-1,F-1, or D-1 or higher)by at least two nationally recognized <br /> rating agencies and matures in 270 days or less. <br /> 4) State and local securities: <br /> a) any security which is a general obligation of any state or local government with <br /> taxing powers which is rated "A"or better by a national bonds rating service; • <br /> Page 4 of 6 <br />