Page 236 - Colleyville FY19 Budget

financial history.

The City shall select financial institutions from which the City may purchase
certificates of deposit in accordance with the Act and this Policy. The City will
have a written depository agreement with any financial institution with whom
the City has time or demand deposits. The Investment Officer shall monitor
the financial condition of financial institutions where certificates of deposit are
held. A qualified representative of the financial institution must sign the
investment certification form (Appendix B) on the financial institutions
letterhead and it must be kept on file with the City.

Collateral Securities for Certificates of Deposit and Demand Accounts
The City will accept as collateral for its Certificates of Deposit and demand
accounts the following securities:

A. FDIC coverage

B. U.S. Treasury bills, notes and bonds

C. United States Agency and instrumentalities bills or notes

D. GNMA mortgage backed fully modified pass through securities

E. Texas state, city, county or school bonds with a remaining maturity
of seven years or less and a rating of "A" or better by Moody's, Fitch
Ratings, and Standard and Poor's.

F. Surety Bond

G. Federal Home Loan Bank Letter of Credit issued to the City

Collateral shall be "marked to market" monthly by the Investment Officers.
The following percentages constitute the minimum market value for collateral
instruments that are pledged for the City's Certificates of Deposit and demand
deposits for amounts exceeding the FDIC coverage.

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