Page 287 - Colleyville FY21 Budget

registered to deal securities in the State of Texas. An investment certification
form (Appendix B) on the firm's letterhead signed by a principal of the firm
must be on file with the City.

Safekeeping

All marketable securities purchased by the City shall be held in third party
safekeeping by an institution designated as primary agent. All securities will
be delivered to the third party institution by seller. Personnel in the third party
institution will verify the correct security was delivered by the seller ("delivery
vs payment"). The third party institution shall issue a safekeeping receipt to
the City listing the specific instrument, rate/yield, maturity, CUSIP, and other
pertinent information. Collateral on deposit type securities which exceed the
FDIC coverage shall be held in a third party safekeeping institution. In the
event a third party safekeeping institution is used, a collateral agreement shall
be executed between the City Council, depository which pledged the collateral,
and the third party custodian of the collateral. The City will retain possession
of all original safekeeping receipts and the receipts will state the security is
pledged to the City. Either the City Manager, Chief Financial Officer or
Accounting Manager must approve release of collateral in writing prior to its
removal from the safekeeping account.

Selection of Financial Institutions

Depositories shall be selected through the City's banking services procurement
process, which shall include a formal request for application. In selecting
depositories, the services available, service costs, and credit-worthiness of
institutions shall be considered, and the Investment Officers, shall conduct a
comprehensive review of prospective depositories' credit characteristics and
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.

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