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Policies <br />(con't) <br />Prudence - The standard of <br />prudence to be applied by the <br />investment officer shall be the <br />"prudent person" rule, which states, <br />"Investments shall be made with <br />judgment and care, under <br />circumstances then prevailing, which <br />persons of prudence, discretion and <br />intelligence exercise in the <br />management of their own affairs, not <br />for speculation, but for investment, <br />considering the probable safety of <br />their capital as well as the probable <br />income to be derived." The prudent <br />person rule shall be applied in the <br />context of managing the overall <br />portfolio. <br />Eligible Depositories -In selecting <br />depositories the credit worthiness of <br />the institution will be considered, <br />including at least credit <br />characteristics and financial history. <br />Depositories must be headquartered <br />within the state of Colorado, with <br />preference given to Louisville <br />financial institutions, and must <br />conform to all other requirements of <br />C.R.S. 11-10.5 (The Public <br />Protection Act). <br />Eligible Securities <br />Brokers/Dealers -For brokers and <br />dealers of government securities, the <br />city shall select only security dealers <br />that are registered with NASD. <br />(National Association of Securities <br />Dealers). <br />Eligible Investments - Eligible <br />investments shall conform to state <br />law and will include any of the <br />following: <br />a.) U.S. Treasury Bills; <br />b.) U.S. Treasury Notes; <br />c.) <br />d.) <br />e.) <br />Any Federal agency securities <br />(short-term bonds and <br />discounts notes) which the <br />investment officer clearly <br />understands and is competent <br />to handle. <br />Fully insured or collateralized <br />certificates of Deposits; <br />Repurchase agreements in <br />securities listed in (a), <br />(b) or (c) above with the <br />following conditions: <br />I) Written Agreement <br />ii) The securities must be <br />marketable <br />iii) Market Value of such <br />securities must be at all <br />times at least equal to <br />the funds invested. <br />iv) Title to or perfected <br />security interest in <br />securities must be <br />transferred to the City <br />or a custodian selected <br />by the Director of <br />Finance. <br />v) Securities must be <br />actually delivered to the <br />City or a custodian <br />selected by the Director <br />of Finance <br />f.) Any interest in any local <br />government investment pool <br />organized pursuant to the <br />provisions of C.R.S. Sections <br />24-75-601, 24-75-701 and 24- <br />75-702. (Colotrust, Jefftrust, <br />CSafe). <br />14 <br />