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Only approved security broker /dealers selected by creditworthiness shall be utilized (minimum <br /> capital requirement $10,000,000 and at least five years of operation). These may include <br /> "primary" dealers or regional dealers that qualify under Securities and Exchange Commission <br /> Rule 150-1 (uniform net capital rule). <br /> All financial institutions and broker /dealers must supply the following as appropriate: <br /> * audited financial statements <br /> * proof of National Association of Securities Dealers (NASD) certification <br /> * proof of state registration <br /> * completed broker /dealer questionnaire for firms who are not major regional or <br /> national firms <br /> * certification of having read the City's investment policy <br /> BROKER REPRESENTATIONS <br /> Municipalities must obtain from their brokers certain representations regarding future <br /> investments. Minnesota Statutes, Section 475.66, Subdivision 6, requires municipalities to <br /> provide each broker with information regarding the municipality's investment restrictions. Before <br /> engaging in investment transactions with the City of Centerville the supervising officer at the <br /> securities broker /dealer shall submit a certification annually according to MNSS118.05. The <br /> document will state that the officer has reviewed the investment policies and objectives, as well as <br /> applicable state law, and agrees to disclose potential conflicts of interest or risk to public funds <br /> that might arise out of business transactions between the firm and the City of Centerville. All <br /> financial institutions shall agree to undertake reasonable efforts to preclude imprudent transactions <br /> involving the City's funds- <br /> AUTHORIZED AND SUITABLE INVESTMENT <br /> Minnesota Statutes, Section 475.66, Subdivision 3, lists all permissible investments for <br /> municipalities. This list establishes the maximum investment risk permitted for a Minnesota <br /> municipality. Even though MN Statutes 475.66 provides for more instruments to be used for <br /> investing purposes; the following is a listing of investments the City will be authorized to invest in: <br /> 1. Government Securities Direct obligations of the federal government or its agencies, with <br /> the principal fully guaranteed by the U.S. Government or its agencies. <br /> 2. Certificate of Deposit A negotiable or nonnegotiable instrument issued by commercial <br /> banks and insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC). <br /> 3 <br />