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CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2011 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 60 Months Federal Farm Credit $ 200,000 $ $ $ 200,000 $ Build America Bonds - Shoreview 167,681 - 167,681 Federal Home Loan Bank 33,906 33,906 Wells Fargo Prime Investment Fund 151,693 151,693 Total $ 553,280 S 151,693 $ S 200,000 S 201.587 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 Federal Farm Credit Build America Bonds Federal Home Loan Bank Total Concentration of Credit Risk Credit Quality Rating Amount N/A $ 151,693 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 following is a list of investments which individually comprise more than 5% of the City's total investments: Credit Type Quality Rating_ Government Money Market Mutual Funds N/A Federal Farm Credit AAA Build America Bonds - Shoreview AAA Federal Home Loan Bank AAA (24) Amount Percentage $ 151,693 27.42% 200,000 36.15% 167,681 30.31 % 33,906 6.13%