Laserfiche WebLink
investment policies and objectives, as well as applicable state laws, 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 Forest Lake. All financial institutions shall <br /> agree to undertake reasonable efforts to preclude imprudent transactions involving the <br /> city's funds. <br /> AUTHORIZED AND SUITABLE INVESTMENTS <br /> MN Statutes, §118A.04, lists all permissible investments for municipalities. This list <br /> establishes the maximum investment risk permitted for a Minnesota municipality. Even <br /> though MN Statutes §118A.04 provides for more instruments to be used for investing <br /> purposes, the following is a listing of investments the City will be authorized to invest in: <br /> 1. Government Securities <br /> Direct obligations of the federal government or its agencies, with the principal <br /> fully guaranteed by the U.S. Government or its agencies. <br /> 2. Certificate of Deposit <br /> A negotiable or nonnegotiable instrument issued by commercial banks and <br /> insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC). <br /> 3. Repurchase Agreement <br /> An investment that consists of two simultaneous transactions, where an investor <br /> purchases securities from a bank or dealer. At the same time, the selling bank or <br /> dealer agrees to repurchase the securities at the same price plus interest at some <br /> agreed-upon future date. The security purchased is the collateral protecting the <br /> investment. <br /> 4. Prime Commercial Paper <br /> An investment used by corporations to finance receivables. A short-term <br /> (matures in 270 days or less) unsecured promissory note is issued for a maturity <br /> specified by the purchaser. Corporations market their paper through dealers who <br /> in turn market the paper to investors. The City will only purchase commercial <br /> paper issued by U.S corporations or their Canadian subsidiaries that has been <br /> rated highest quality(Al, P1 and Fl)by two of three rating agencies. <br /> 5. State or Local Government Securities <br /> Any Security that is a General Obligation of the State of Minnesota or any of its <br /> Municipalities. <br /> 6. Statewide Investment Pools <br /> Statewide investment pools that invest in authorized instruments according to <br /> Minnesota Statutes §118A.04, such as the Minnesota Municipal Money Market <br /> (4M)Fund. <br /> • <br /> - 4 - <br />