2017 06-20 CC PACKET - Laserfiche WebLink

Home

CITY OF GEM LAKE, MINNESOTA NOTES. TO.BASIC FINANCIAL.STATEMENTS DECEMBER 31, 2016 NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments The.City may also invest idle funds as authorized by Minnesota Statutes as follows: • Direct obligations or obligations guaranteed, by the United States or its agencies.. • Shares of investment companies registered und6r`` the Federal Investment Company Act of 1940 and received the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency and all of the investments have a finial maturity of 13 months or less:.. ■ General obligations rated "A".or better, revenue obligafioris.rated "AA" or better. • General.obligations of the Minnesota Housing Finance Ageni~y,rate "A" or better. • Bankers' acceptances of United:.. States banks eligible far purchase by the Federal Reserve System. • Commercial paper issued by United States hanks corporations or their Canadian subsidiaries, of highest quality category' .by a least two nationally recognized rating agencies, and maturing. in 270 days,'or less. • Guaranteed investment confracts .:guaranteed by United States commercial banks or domestic branches W.f reign: banks or United States insurance. companies if similar debt 'gbligat dhs of thb issuer or the collateral pledged by the issuer is:ii -the top two rating categories, • Repurchase or reverse purchiase agreement and securities lending agreements firiancial institutions. qualified' as a "depository" by the government entity, with banks`..that are `.members.. of ,the Federal Reserve System with capitalization exceeoing.$.1.O,OCIa,o o, a'primary reporting dealer.in U.S. government securities to the I ederal Reserve Bank of New York, or certain Minnesota securities b"reker-dealers; • Any security which is an abligation of a school district with an original maturity not exceeding' 13 months and (i) rated in the highest category by a national bond. rating. service (H) enrolled in athe cedit enhancement program pursuant to Mintlesa#a Statute 4126C.55 Custodial, Credit Risk For on investment, custodial credit risk is the risk that, in `the event of failure of the counterparty, the City will not be able to recover the value of its investment: or coil ateral securities that are in the possession of an outside party. The City's investment policy doesn't specifically address custodial credit risk. t22j