Laserfiche WebLink
Credit risk exposure can be affected by a concentration of deposits or investments in <br /> any one investment type or with any one party. <br /> CUSTODIAN - An independent third party (usually bank or trust company) that holds <br /> securities in safekeeping as an agent. <br /> DEALER -A dealer, as opposed to a broker, acts as a principal in all transactions, <br /> buying and selling for his own account. <br /> DEFEASE - To discharge the lien of an ordinance, resolution, or indenture relating to a <br /> bond issue, and in the process, render inoperative restrictions under which the issuer <br /> has been obliged to operate. Comment: Ordinarily an issuer may defease an indenture <br /> requirement by depositing with a trustee an amount sufficient to fully pay all amounts <br /> under a bond contract as they become due. <br /> DELIVERY VS PAYMENT- There are two methods of delivery of securities: Delivery vs. <br /> payment and delivery vs. receipt (also called free). Delivery vs. payment is delivery of <br /> securities with an exchange of money for the securities. Delivery vs. receipt is delivery <br /> of securities with an exchange of a signed receipt for the securities. <br /> DEPOSITORY INSURANCE - Insurance on deposits with financial institutions. For <br /> purposes of this policy statement, depository insurance includes: a) Federal depository <br /> insurance funds, such as those maintained by the Federal Deposit Insurance <br /> Corporation (FDIC) AND Federal Savings and Loan Insurance Corporation (FSLIC); and <br /> b) Public Deposit Protection Commission. <br /> DISCOUNT- 1. (n.) selling below par; e.g., a$1000 bond selling for$900. 2. (v.) <br /> anticipating the effects of news on a security's value; e.g., "The market had already <br /> discounted the effect of the labor strike by bidding the company's stock down." <br /> DIVERSIFICATION - Dividing available funds among a variety of securities and <br /> institutions so as to minimize market risk. <br /> EFFECTIVE RATE -The yield you would receive on a debt security over a period of time <br /> taking into account any compounding effect. <br /> FACE VALUE -The value of a bond stated on the bond certificate; thus, the redemption <br /> value at maturity. Most bonds have a face value, or par, of$1,000. <br /> 10 I City of Everett Investment Policy(2017) <br />