Page 308 - City of Colleyville FY22 Adopted Budget

seeking to maintain a stable net asset value of $1.0000 per share.
Investment in mutual funds shall be limited as per PFIA.

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

Prohibited Investments

The following securities, although authorized by PFIA, 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
market mutual funds as described above.

6. Share certificates of qualifying credit unions

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