Finance Committee Agenda and Packet 2011 12 19

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35% of the investment portfolio. The total of the above mentioned entities or organizations and inclusive of corporate or bank securities cannot represent more than 95% of the investment portfolio. Any security that is a general or revenue obligation of any state of the United States, the District of Columbia, or any territorial possession of the United States or of any political subdivision, institution, department, agency, instrumentality, or authority of any of such governmental entities. The period from the date of settlement of this type of security to the maturity date shall be no more than three years. Any interest in a local government investment pool pursuant to CRS 24-75-701, et seq. Cash in certainrestricted and special funds should be invested separately rather than in an investment pool forarbitrage rebate trackingpurposes. Any guaranteed investment contract (GIC) if at the time the contract or agreement is entered into, the long-term credit rating, financial obligations rating, claims paying ability rating, or financial strength rating of the party, or of the guarantor of the party, with whom the public entity enters the contract or agreement is, at the time of issuance, rated in one of the two highest rating categories by two or more nationally recognized securities rating agencies that regularly issue such ratings. Contracts or agreements purchased under this paragraph shall not have a maturity period greater than three years. Any corporate or bank security issued by a corporation or bank that is organized and operated within the United States with a maturity of less than three years from the date of settlement and, at the time of purchase, must carry at least two credit ratings from any of the nationally recognized credit rating agencies and must not be rated below “AA– or Aa3” by any credit rating agency. The aggregate value of all securities referred to in this paragraph shall equal no more than 25% of the total portfolio. Money market instruments, such as commercial paper or bankers' acceptance, must carry at least two credit ratings from any of the nationally recognized credit rating agencies and must not be rated below "A1, P1, or F1" by any credit rating agency. Any money market fund that is registered as an investment company under the federal “Investment Company Act of 1940”, as amended, at the time the investing public entity invests in such fund. The money market fund must: 1) have no commission fee on the charged on purchases or sales of shares; 2) have a constant daily net asset value per share of $1.00; 3) limit assets of the fund to U.S. Treasury Securities; 4) have a maximum stated maturity and weighted average maturity in accordance with Federal Securities Regulation 270-2A-7; and 5) have a rating at the time of purchase of at least AAAm by Standard & Poor’s or Aaa/MRI+ Moody’s securitiesthat are marketable The purchase of any repurchase agreement of marketable referred to in the preceding paragraphs.A Master Repurchase Agreement must be executed with the bank or dealer. The securities must be delivered to the public entityCity’s custodian or to a third-party custodian or third-party trustee for safekeeping on behalf of the public entityCity.The title to or a perfected security interest in such securities along with any necessary transfer documents must be transferred to the City or the City’s custodian. The collateral securities of the repurchase agreement must be collateralized at no less than one hundred two percent and marked to market no less frequently than weekly. Collateralization 13