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NOTE.:2 CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2011 DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Interest Rafe Risk (Continued) 12 Months 13 to 24 25 to 60 More than Type Total . or Less. Months Months 60 Months Federal Farm Credit $ 200,000 5 - S. - 5 200,000 5 _ Build America Bonds - 5horeView 167,681 - - _ 167,681 Federat Home Loan Bank. $3,90..6 -. - 33,906 Wel.is Fargo Prime Investment Fund 151,093 151,693 - - Total S 553,280 $ 151,693 5 $ 200,000 5 201,587 Credit Risk Generally, credit risk is the risk that an issuer of an investment wiil not fulfill. its obligation to the holder of the. investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City's investment policy doesn't. specifically address credit risk. The following chart summarizes yearend ratings for the City's investments as rated by Moody's Investors Services: Tvoe Government Money Market Mutual Funds Federal Farm Credit Build America Bonds Federal Home Loan Bank Total Concentration of Credit Risk Credit Quality Rating Amount NIA $ 161,693 AAA 200,000 AAA 167.,681 AAA 33,906 553;280 The City places. no limit on the amount that the City may invest in any one issuer. The folImA ing is a list of investments which individually comprise more than 5 percent of the City's total investments: Tvoe Government Money Market Mutual -Funds Federal Farm Credit Build America Bonds - Shoreview Federal Home. Loan Bank Cred it [Quality. Rating Amount Percentage idlA $ 151,693 27.42°/a AAA 200,000 36..15% AAA 167;681 30.31 % AAA 33,906 5:13°Io .(24)