2008 10-21 CCP - Laserfiche WebLink

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Governmental bonds, notes, bills, mortgages and other securities, which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizationscreatedby an act of Congress,excluding mortgage -backed securities defined as "high risk" (as defined below) or in certificates of deposit secured by letters of credit issued by Federal Home Loan Banks. High risk mortgage -backed securities are as follows: A) interest — only or principal — only mortgage -backed securities, B) any mortgage derivative security that: a) has an expected average life grater than ten years, b) has an expected average life that: i) will extendby more than four years as the result of an immediate and sustained parallel shift in the yield curve of plus 300. basis points: or ii) will shorten by morethan six years as theresult of an immediate and sustained parallel shift in the. yield curve of minus 300 basis points: or c}. will have an estimated change in price of more than 17 percent as the result of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points. Obligations of the United States or its agencies undera repurchase agreement if the margin agreement under the repurchaseagreement is 101 percent and with any of the following institutions: A) a bank qualified as depository of public funds, 13) any national or state bank in the United States which is a member of the Federal Reserve System and whose combined capital and surplus equals or exceeds $10,000,000,. C) a primary reporting dealer in the United States government securities to the Federal Reserve Bank of New York, D) a securities broker/dealer having its principal executive office in Minnesota, licensed pursuant to Chapter 80A, or an affiliate of it, regulated by the Securities and Exchange Commission and maintaining a combined capital and surplus of $40,000,000 or more, exclusive of subordinated debt. 3. State and local government obligation as follows: A) an obligation of the State of Minnesota or any of its:municipalities, B) obligation of other state and local governments: a) that have taxing power, and b) are rated "A" or better by a national bond "rating service. C) general obligations of the Minnesota Housing Finance Agency that are rated. "A" or better by a national bond rating service. D) general obligations of housing finance agencies of other states, provided: a) they include a moral obligation of the state, and