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7. Money Market Mutual Funds <br /> Money market mutual funds that invest in authorized instruments according to • <br /> Minnesota Statutes §118A.04. <br /> Interest-bearing deposits in authorized depositories must be fully insured or <br /> collateralized. <br /> COLLATERALIZATION <br /> The City funds must be deposited in financial institutions that provide $100,000 in <br /> government insurance protection. At no time will deposits in any one institution exceed <br /> $100,000 unless such excesses are protected by pledged securities. Pledged securities, <br /> computed at market value, will be limited to the following: <br /> 1. United States Treasury bills, notes or bonds that mature within five years; <br /> 2. Issues of United States government agencies guaranteed by the United States <br /> government; <br /> 3. General obligation securities of any state or local government with taxing <br /> powers which is rated "A" or better, or revenue obligation securities of any <br /> state or local government with taxing powers which is rated is rated AA or <br /> better, provided no single issue exceeds $200,000 with maturities not <br /> exceeding five years; 41111 <br /> 4. Irrevocable standby letters of credit issued by Federal Home Loan Banks <br /> accompanied by written evidence that the bank's public debt is rated AA or <br /> better, <br /> 5. Time deposits that are fully insured by any federal agency. <br /> In order to anticipate market changes and provide a level of security for all funds, the <br /> collateralization level will be 110 percent (110%) of the market value of principal and <br /> accrued interest. Collateral shall be deposited in the name of the City of Forest Lake, <br /> subject to release by the City's Finance Director. All certificates of deposit and <br /> repurchase agreements purchased by the City shall be held in third-party safekeeping by <br /> an institution designated as primary agent. The primary agent shall issue a safekeeping <br /> receipt to the City listing the specific instrument rate maturity and other pertinent <br /> information. All deposits will be insured or collateralized in accordance with Minnesota <br /> Statutes Chapter 118. No other collateral except as designated above will be authorized <br /> for use as collateral for City funds. <br /> • <br /> - 5 - <br />