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6. Safekeeping and Custody <br />Investments may be held in safekeeping with: <br />l . Any Federal Reserve Bank, <br />2. Any bank authorized under the laws of the United States or any state to exercise <br />corporate trust powers, including but not limited to the bank from which the <br />investment is purchased, <br />3. A primary reporting dealer in the United States government securities to the <br />Federal Reserve Bank of New York, or <br />4. A securities broker -dealer having its principal executive office in Minnesota, <br />Licensed pursuant to Minnesota Statutes Chapter 80A, or an affiliate of it, <br />regulated by the securities and exchange commission and maintaining a combined <br />capital and surplus of $40,000,000 or more, exclusive of subordinated debt. <br />The City's ownership of all securities in which the fund is invested should be evidenced <br />by written acknowledgments identifying the securities by: <br />A. The names of issuers, <br />B. The maturity dates, <br />C. The interest rates, <br />D. Any serial numbers or cusips. <br />The City shall not invest in securities that are both uninsured and not registered in the <br />name of the City and are held by either: <br />A. The counterparty or <br />B. The counterparty's trust department or agent, but not in the name of the <br />City. <br />The Finance Director shall establish a system of internal controls, which shall be <br />reviewed with the independent auditor of the City. The controls shall be designed to prevent the <br />loss of public funds arising from fraud, employee error, and misrepresentation by third parties, <br />unanticipated changes in financial markets, or imprudent actions by employees and officers of <br />the City. <br />7. Concentration of Credit Risk <br />No more than 5% of the overall portfolio may be invested in the securities of a single <br />issuer, except for the securities of the U.S. Government, or a maximum of 25% with any <br />individual counter party in an external investment pool. <br />8. Investment Depositories and Authorized Dealers <br />Annually, the City Council will designate by resolution depositories, broker dealers and <br />financial institutions authorized to provide banking and investment services to the City. Prior to <br />completing an initial transaction each year with a broker/dealer, the City shall provide to the <br />5 <br />