§ 37.31. Collateral securities, eligible investments and eligible institutions.

A.

Collateral securities shall mean securities maturing within five years from the date of their pledge and include the following:

1.

Bonds, notes, or other direct obligations of the United States of America, or bonds, notes, or other obligations guaranteed as to principal and interest by the United States of America or those for which the faith of the United States of America is pledged for the payment of principal and interest thereon, by language appearing in the instruments specifically providing the guarantee or pledge and not merely by interpretation or otherwise;

2.

Bonds, notes, debentures, or other obligations or securities issued by any federal government agency, or the Export-Import Bank of Washington, bonds, notes, or other obligations guaranteed as to principal and interest by the United States of America or those for which the faith of the United States of America is pledged for the payment of principal and interest thereon, by interpretation or otherwise and not by language appearing in the instruments specifically providing that guarantee or pledge;

3.

Bonds, notes, and other obligations of this state or of any subdivision, including the city, which is not at the time of such deposit in default in the payment of principal or interest on any of its bonds, notes, or other obligations, and for which the full faith and credit of the issuing subdivision is pledged; and

4.

Bonds of other states of the United States of America for which the full faith and credit of the state is pledged, which states have not during the ten years immediately preceding the time of such deposit defaulted in payments of either interest or principal on any of their bonds.

B.

Eligible investments shall mean the following instruments:

1.

Government securities, including:

a.

Bonds, notes, or other direct obligations of the United States of America or obligations issued by federal agencies, the principal of and interest on which are unconditionally guaranteed by the United States of America;

b.

Bonds, notes, debentures, or other obligations or securities issued by any federal agency, whether or not they are guaranteed by the United States of America, including but not limited to obligations of the following federal agencies: Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA), Small Business Administration (SBA), Federal Housing Administration (FEA), Farmers Home Administration (FmHA), General Services Administration (GSA); and

c.

Obligations of the Export-Import Bank of Washington, Federal Home Loan Mortgage Corporation, or Federal Home Loan Bank or its district banks, including Federal Home Loan Mortgage Corporation participation certificates, or obligations guaranteed by the Government National Mortgage Association.

2.

Negotiable or nonnegotiable interest bearing time certificates of deposits and savings accounts in banks organized under the laws of this state, national, banking associations organized under the laws of the United States of America, savings and loan associations under state supervision, or savings and loan associations located in this state and organized under federal law and under federal supervision, provided that any certificates of deposits and savings accounts are secured by collateral securities in the same manner as provided in §§ 37.35 and § 37.37 hereof.

3.

Repurchase agreements of eligible institutions for government securities described in subsection (B)(1) of this section with a maturity not to exceed five years from the date of the repurchase agreement at an amount not less than their fair market value (all such obligations hereafter collectively referred to as repurchase-securities). The following conditions apply to repurchase agreements:

a.

Banks within the state shall segregate repurchase-securities in a separate account to the credit of the City for the duration of the repurchase agreement and with the right of substitution if so directed by the Investment Officer;

b.

Savings and loan associations shall deliver repurchase securities to the credit of the City for the duration of the repurchase agreement with a trustee acceptable to the Investment Officer, or, at the option of the Investment Officer, the City will accept repurchase-securities directly as described in subsection (B)(3)(c) of this section;

c.

Financial institutions outside the state or U.S. government securities dealers shall deliver repurchase-securities to the credit of the City for the duration of the repurchase agreement against payment at the customer safekeeping account of a depository bank; and

d.

Repurchase agreements shall not exceed a duration of one year.

4.

Bonds, notes, or other obligations of this state or any subdivision for which the full faith and credit of the state or the subdivision, respectively, is pledged.

5.

Bonds, notes, or other obligations of the City as provided in § 37.40 hereof.

6.

Deposits or investments with the State Treasurer's Investment Pool or other investment programs as provided in § 37.41 hereof.

C.

Eligible institutions shall mean the following financial institutions or dealers:

1.

Nationally chartered banks that are regulated, insured or operated under the laws of the United States of America and under the supervision of the Comptroller of the Currency;

2.

State-chartered banks insured by federal deposit insurance;

3.

State-chartered banks that are members of and regulated by the federal reserve system;

4.

Savings and loan associations insured by federal deposit insurance; and

5.

U.S. government securities dealers as designated by the federal reserve bank.

(Ord. 789-1986; Ord. 674-1985; Ord. 611-1985)