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y <br /> r <br /> Investment Policy <br /> b) any security which is a revenue obligation of any state or local government with <br /> taxing powers which is rated "AA"or better by a national bond rating service; and <br /> c) a general obligation of the Minnesota housing finance agency which is a moral <br /> obligation of the state of Minnesota and is rated "A" or better by a national bond <br /> rating agency. <br /> 5) Repurchase agreements: Repurchase agreements consisting of collateral allowable in <br /> items 1 thru 4 above,may be entered into with any of the entities per Minnesota <br /> Statute 118A.05, Subdivision 2. <br /> 6) Statewide investment pools which invest in authorized instruments according to MN <br /> Statutes 118A, and restricted to itemsl thru 5 above. <br /> 7) Money market mutual funds which invest in authorized instruments according to MN <br /> Statutes 188A, and restricted to items 1 thru 5 above. <br /> Interest-bearing deposits in authorized depositories must be fully insured or <br /> collateralized. <br /> Collateralization <br /> • Collateralization will be required on two ty <br /> pes ypes of investments, Certificates of Deposit and <br /> Repurchase Agreements. In order to anticipate market changes and provide a level of <br /> security for all funds, the Collateralization level will be 110 percent of the market value <br /> of principal and accrued interest. When the pledged collateral consists of notes secured <br /> by first mortgages, the collateral level will be 140% of the market value of principal and <br /> accrual interest. Collateral shall be deposited in the name of the City of Oak Grove <br /> subject to release by the City's Finance Director. <br /> All Certificates of Deposit and Repurchase Agreements purchased by the City shall be <br /> held in third party safe keeping by an institution designated as primary agent. The <br /> primary agent shall issue a safekeeping receipt to the City listing the specific instrument, <br /> rate,maturity and other pertinent information. All deposits will be insured or <br /> collateralized in accordance with Minnesota Statutes 118A.03. <br /> Safekeeping and Custody <br /> When investments purchased by the City are held in safekeeping by a broker/dealer, <br /> they must provide asset protection of$500,000 through the Securities Investor Protection <br /> Corporation (SIPC) and at least another$10,000,000 supplemental insurance protection. <br /> • <br /> Page 5 of 6 <br />