Page 230 - Colleyville FY19 Budget

security safeguarding, valuation collateralization and auditing,
and a fee schedule.
g. The City may invest in more than one pool, however no more
than 5% of the City’s total portfolio may be invested in pools
containing commercial paper.

7. Direct repurchase agreements with primary security dealers or financial
institutions doing business in the State of Texas having a defined
termination date, and secured by U.S. Government or federal agency
securities, provided that the ownership of collateral for the repurchase
agreement is transferred to the City, and deposited with a safekeeping
agent for the duration of the contract and a signed master repurchase
agreement has been executed with the counterparty.

8. SEC-registered no-load money market mutual funds with a dollar
weighted average portfolio of 90 days or less whose assets consist
exclusively of United States Government Securities whose investment
objectives include seeking to maintain a stable net asset value of $1.00
per share. Investment in mutual funds shall be limited to a maximum
of ten percent (10%) of the City's available funds.

9. Certificate of Deposit Account Registry Service (CDARS) deposited with
a certificate of deposit issued by a depository institution that has its
main office or branch office in this state that is selected by the investing
entity pursuant to the requirements of Section 2256.010 of the
Government Code.

The City is not required to liquidate an investment that was authorized at the
time of its purchase.

Unacceptable Investment Instruments

The following securities, although authorized by the Public Funds Investment
Act, are not eligible investments for the City:

1. Collateralized mortgage obligations and/or obligations of the
following structure
a) obligations whose payment represents the coupon payments
on the outstanding principal balance of the underlying mortgage-
backed security collateral and pays no principal;
b) obligations whose payment represents the principal stream of

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