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CITY OF GEM LAKE, MINNESOTA . NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER,31, 2013 NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Interest, Rate Risk (Continued) 12 Months. 13 to 24 25 to 60 More -than Type Total or Less Months Months 50 Months _ Build America Bonds. - Shoreview $ 166,486 $ - 5 - $ - 3 1.58,486 Negotiable Certificates of Deposit 525;508 140,301 - 345;i75 .40,032 Wells Fargo Prime Investment l=und. 26,7t71 26,701 - - - Total $ 710,695. $ 167002 $ - $ 345,175 $ 198,518 Credit Risk Generally, credit risk is the risk that an issuer of an investment will 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 year-end ratings for the City's investments as rated by Moody's Investors Services: Government Money Market: Mutual Funds Build America Bonds Negotiable Certificates of Deposit: GE Capital Bank.CD Goldman Sachs Bank CD Safra National Bank CD Total Negotiable Certificates of.Deposits Total NR = Not Rated Credit Quality. Rating Amount NR $ 26,7U AAA 1587486 N R 245, 531 NR 139, 676 NR 1401301 5251508 $ 710695 Concentration of Credit Risk The City places no. limit on the amount that the City may invest in any one issuer.. The following is a list of investments which individually comprise more than 5% of the City's total investments: Type Build America Bonds - Shoreview Negotiable Certificates of Deposit GE Capital Bank CD Goldman Sachs Bank CD Safra National Bank CD 0 Amount Percentage 158,486 22.30% 245,531 34:55% 139,676 19.65% 140,Wi 19..74% (25)