The city does not actively invest in repurchase agreements for short term investments. However, if a repurchase agreement is utilized collateralization is required. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be one hundred and two percent of market value of principal and accrued interest. Re-pricing of the collateral should occur daily.
The city chooses to limit the collateral to treasury and GSE Agency securities only, with a maximum maturity of three years.
Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained.
The right of substitution is granted. (Ord. 2937 § 1, 2014)