2017/03/08 Council Agenda Packet

2 7.2 All financial institutions must be approved by the State of Washington Public Deposit Protection Commissions (RCW 39.58) and meet all capital requirements. No public deposit shall be made except in a qualified public depository as established by the state of Washington Public Deposit Protection Commission. 7.3 All primary dealers or regional dealers must qualify under the U.S. Securities and Exchange Commission Rule (SEC) 15C3-1- Uniform Net Capital Rule,and must be a certified member of the Financial Industry Regulatory Authority (FIN RA). 8.1 Authorized & Suitable Investments. The _' •- '•-' " - -- ••-• which states:following investments are authorized as provided in RCW's 39.58 and 39.59: • Certificates, notes, or bonds of the United States, or other obligations of the • United States or its agencies, or of any corporation wholly owned by the government of the United States. • Obligations of government-sponsored corporations which are eligible as collateral for advances to member banks as determined by the Board of Governors of the Federal Reserve System,which include, but are not limited to Federal Home Loan Bank, Federal Farm Credit Bank, Federal National Mortgage Association,and the Federal Home Loan Mortgage Corporation. • Investment deposits, including non-negotiable certificates of deposit,with qualified public depositories as defined in RCW 39.58. • Banker's acceptances purchased through State of Washington Financial Institutions and authorized broker/dealers. Duration of banker's acceptances shall not be longer than six months. Investments in Banker's Acceptances must be in the top thirty banks in the United States, including all banks in the State of Washington as authorized by the Public Deposit Protection Commission. Further,within these limitations, investments may be made only in those banks whose other negotiable obligations are rated at least A-1, P-1, or F-1 (at the time of purchase) by at least two or more internationally recognized agencies such as Moody's or Standard and Poor's. • Repurchase Agreements provided that the transaction is structured so that the City of Everett obtains control over the underlying securities and a Master Repurchase Agreement has been signed with the bank or dealer. All repurchase agreements will be collateralized at a minimum of 102%of market value of principal and interest. Collateral will consist of direct obligations of the U.S.Treasury, U.S. Government Agency,and/or U.S. Government Security. All securities shall be held in third party safekeeping. • Bonds of the state of Washington or any local government in the State of Washington which have, at the time of investment, one of the three highest credit ratings of a nationally recognized rating agency. 03/20/01 9:07AM