Page 42 - CityofColleyvilleFY23AdoptedBudget

the rms who will be trading or quoting securities to the City Council must maintain a current NASD license
and be registered to deal securities in the State of Texas. An investment certi cation form (Appendix B) on the
rm's letterhead signed by a principal of the rm must be on le 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 speci c 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 Of cer 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 Of cers, shall conduct a comprehensive
review of prospective depositories' credit characteristics and nancial history.

The City shall select nancial institutions from which the City may purchase certi cates of deposit in
accordance with the Act and this Policy. The City will have a written depository agreement with any nancial
institution with whom the City has time or demand deposits. The Investment Of cer shall monitor the nancial
condition of nancial institutions where certi cates of deposit are held. A quali ed representative of the
nancial institution must sign the investment certi cation form (Appendix B) on the nancial institutions
letterhead and it must be kept on le with the City.

Collateral Securities for Cer ti{cates of Deposit and Demand Accounts The City will accept as collateral for its
Certi cates 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 modi ed 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

City of Colleyville | Budget Book 2023 Page 42