Page 312 - City of Colleyville FY22 Adopted Budget

interpretation of subjective investment standards, or relates to investment
transactions of the City that are not made through accounts or other
contractual arrangements over which the business organization has accepted
discretionary investment authority.

The City shall not enter into an investment transaction with a pool or
discretionary investment manager prior to receiving the written instrument
described above.

Safekeeping

All marketable securities purchased by the City shall be held in a third party
safekeeping institution. All securities will be settled on a delivery versus
payment basis whereby the third party safekeeping institution will verify the
correct security was delivered by the seller prior to releasing payment for the
security. The third party safekeeping institution shall issue a safekeeping
receipt to the City listing the specific instrument, rate/yield, maturity, CUSIP,
and other pertinent information. The securities will be held in an account in
the City’s name as evidenced by the safekeeping receipts.

Securities pledged as collateral on deposits which exceed the FDIC coverage
shall be held by a third party custodial institution designated by the City and
held in an account in the City’s name. A collateral agreement shall be
executed between the City and the third party custodian of the collateral.

Collateralization

Financial institutions serving as City depositories will be required to sign a
depository agreement with the City. The collateralized deposit portion of the
agreement shall define the City’s rights to the collateral in case of default,
bankruptcy, or closing and shall establish a perfected security interest in
compliance with Federal and State regulations, including:

 The agreement must be in writing;
 The agreement must be executed by the depository and the City
contemporaneously with the acquisition of the asset;
 The agreement must be approved by the Board of Directors or
designated committee of the depository and a copy of the meeting
minutes must be delivered to the City; and
 The agreement must be part of the depository’s “official record”
continuously since its execution.

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