Laserfiche WebLink
to the risk being assumed. Securities shall generally be held until <br /> 41111 maturity. <br /> 4. Pooling of Funds <br /> The City will consolidate (pool) cash and reserves balances from all funds, except for <br /> those legally restricted by statutes, to maximize investment earnings and to increase efficiencies <br /> with regard to investment pricing, safekeeping and administration. <br /> 5. Authorized Investments <br /> The City of Arden Hills will invest only in securities authorized by Minnesota Statute §118A.04 <br /> and §118A.05. <br /> 1. Governmental bonds, notes, bills, mortgages and other securities,which are direct <br /> obligations or are guaranteed or insured issues of the United States, its agencies, <br /> its instrumentalities, or organizations created by an act of Congress, excluding <br /> mortgage-backed securities defined as "high risk" (as defined below) or in <br /> certificates of deposit secured by letters of credit issued by Federal Home Loan <br /> Banks. <br /> High risk mortgage-backed securities are as follows: <br /> A) interest—only or principal — only mortgage-backed securities, <br /> B) any mortgage derivative security that: <br /> a) has an expected average life greater than ten years, <br /> b) has an expected average life that: <br /> i) will extend by more than four years as the result of <br /> an immediate and sustained parallel shift in the <br /> yield curve of plus 300 basis points: or <br /> ii) will shorten by more than six years as the result of <br /> an immediate and sustained parallel shift in the <br /> yield curve of minus 300 basis points: or <br /> c) will have an estimated change in price of more than 17 <br /> percent as the result of an immediate and sustained parallel <br /> shift in the yield curve of plus or minus 300 basis points. <br /> 2. Obligations of the United States or its agencies under a repurchase agreement if <br /> the margin agreement under the repurchase agreement is 101 percent and with any <br /> of the following institutions: <br /> A) a bank qualified as depository of public funds, <br /> B) any national or state bank in the United States which is a member of the <br /> Federal Reserve System and whose combined capital and surplus equals or <br /> 4110 exceeds $10,000,000, <br /> \\Metro-inet\ArdenHills\Finance\Policies and Pthcedures\Policies\Investment Policy.doc <br /> Last printed 9/7/2007 1:38 PM <br />