Page 231 - Colleyville FY19 Budget

cash flow from the underlying mortgage-backed security collateral
and bears no interest;
c) collateralized mortgage obligations that have a stated final
maturity date of greater than 10 years; and
d) collateralized mortgage obligations the interest rate of which
is determined by an index that adjusts opposite to the changes in
a market index.

2. Commercial Paper (Exception: Local Government Investment
Pools which the City participates may contain commercial paper
in compliance with Title 10, sec. 2256.013 of the Texas
government code)

3. Banker's acceptances

4. Reverse repurchase agreements (Local Government Investment
Pools which the City participates in may engage in reverse
repurchase agreements if the term is 90 days or less)

5. No-load mutual funds other than 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.

6. Guaranteed investment contracts

7. Share certificates of qualifying credit unions

Effect of Loss of Required Rating

An investment that requires a minimum rating does not qualify as an
authorized investment during the period the investment does not have a
minimum rating. The Investment Officer shall take all prudent measures that
are consistent with the City’s investment policy to liquidate the investment(s)
that does not have the minimum rating (2256.021). In accordance with
Section (2256.005(b)), the Investment Officer shall monitor rating changes in
current investments by keeping a monthly record of ratings issued by three
nationally recognized rating agencies.

Investment Strategy

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