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NOTE 2 <br />CITY OF GEM LAKE, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2010 <br />DEPOSITS AND INVESTMENTS (CONTINUED) <br />B. Investments (Continued) <br />12:M6nths 13 to: N <br />25 to 50 <br />More than <br />Type. <br />-- <br />Total <br />or Less Months <br />Months <br />R Months' <br />Federal Farm Credit <br />$ 200,Wo <br />s - $ <br />$ <br />S. 200,000 <br />Federal Home. Loan Mortgage <br />15000 <br />- <br />15,000: <br />- <br />Federal Home Loan Bank <br />155:06 <br />- - <br />155,000 <br />Wells Fargo Prime Investment.Furid <br />4,000 <br />4,000 - <br />Total <br />5 374.000 <br />5 4,000. $ - <br />$ 15,000 <br />s 355;00.0 <br />Credit. Risk <br />Generally, credit risk is the risk that an issuer of an investment will not fulfil€ its obligation <br />to the holder of the investment. This. is measured by the assignment of a rating by a <br />nationally recognized statistical rating organization.. The City's investment policy doesn't <br />specifically address credit risk. The following chart. summarizes .year-end. ratings far the. <br />City's investments.as. rated by Moody's Investors Services; <br />Type <br />Government. Money Market. Mutual Funds <br />Federal Farm Credit <br />Federal Home...Loan Mortgage <br />Federal Home Loan Bank <br />Total <br />Concentration. of Credit Risk <br />Credit <br />_Quality Rating <br />Amount <br />N/A <br />$ 4.,000 <br />AAA <br />200,000 <br />AAA <br />15, 000 <br />AAA <br />155,000 <br />$. 374,000. <br />The City places no limit on the amount that the City may invest in any one issuer. The <br />following is a list of investments which individually comprise more than 5°Io of the City's <br />total investments: <br />Credit <br />Type Quality Rating. Amount Percentage <br />Federal Farm Credit AAA $. 200'000 .53.48% <br />Federal Home Loan Bank AAA 1551000 4144.4% <br />(23 ) <br />