Page 283 - Colleyville FY21 Budget

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
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

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

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