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IV. Standards of Care <br /> 1. Prudence <br /> The standard of prudence to be used by the Treasurer shall be the "prudent person" standard <br /> and shall be applied in the context of managing an overall portfolio. The Treasurer acting in <br /> accordance with written procedures and this investment policy and exercising due diligence <br /> shall be relieved of personal responsibility for an individual security's credit risk or market <br /> price changes, provided deviations from expectations are reported in a timely fashion and the <br /> liquidity and the sale of securities are carried out in accordance with the terms of this policy. <br /> The"prudent person" standard states that, "Investments shall be made with judgment and <br /> care, under circumstances then prevailing,which persons of prudence, discretion and <br /> intelligence exercise in the management of their own affairs,not for speculation,but for <br /> investment, considering the probable safety of their capital as well as the probable income to <br /> be derived." <br /> 2. Ethics and Conflicts of Interest <br /> The Treasurer shall refrain from personal business activity that could conflict with the proper <br /> execution and management of the investment program, or that could impair their ability to <br /> make impartial decisions. The Treasurer shall disclose any material interests in financial <br /> institutions with which they conduct business. They shall further disclose any personal <br /> financial/investment positions that could be related to the performance of the investment <br /> portfolio. The Treasurer shall refrain from undertaking personal investment transactions <br /> with the same individual with whom business is conducted on behalf of the City. <br /> 3. Delegation of Authority <br /> Authority to manage the investment program is granted to the Treasurer and derived from <br /> the following: Annual Resolution Appointing Official Newspaper, Acting Mayor, Official <br /> Depository, and Treasurer. Responsibility for the operation of the investment program is <br /> hereby delegated to the Treasurer, who shall act in accordance with established written <br /> procedures and internal controls for the operation of the investment program consistent with <br /> this investment policy. Procedures should include references to: safekeeping, delivery vs. <br /> payment, investment accounting, repurchase agreements,wire transfer agreements, and <br /> collateral/depository agreements. [Please refer to GFOA 's Investment Procedures Manual, <br /> 2003.] No person may engage in an investment transaction except as provided under the <br /> terms of this policy and the procedures established by the Treasurer. The Treasurer shall be <br /> responsible for all transactions undertaken and shall establish a system of controls to <br /> regulate the activities of subordinate officials. <br /> V. Authorized Financial Institutions, Depositories, and Broker/Dealers <br /> 1. Authorized Financial Institutions, Depositories, and Broker/Dealers <br /> A list will be maintained of financial institutions and depositories authorized to provide <br /> • investment services. In addition, a list will be maintained of approved security <br />