Page 562 - Bedford-FY24-25 Budget

2. Safekeeping and Custodial Agreements. Bedford shall contract with a safekeeping agent for the
safekeeping of securities owned by Bedford as part of its investment portfolio. Securities owned by
Bedford shall be held in Bedford’s account as evidenced by safekeeping receipts of the institution
holding the securities.

Bedford shall approve all third-party custodians for the holding of securities pledged to Bedford as
collateral to secure financial institution deposits. The custodial agreement is to specify the acceptable
pledged securities as collateral, including provisions relating to possession of the collateral, the
substitution or release of pledged securities, ownership of securities, and the method of valuation of
securities.

3. Collateral Policy. With the exception of deposits secured with irrevocable letters of credit at 100%
of principal plus anticipated interest, all deposits of Bedford funds with financial institutions shall be
secured by pledged collateral with a market value equal to or greater than 102% of the principal plus
accrued interest of the deposits, less any amount insured by the FDIC. Repurchase agreements shall
be documented by a specific agreement noting the “purchased securities” in each agreement; such
securities shall comply with the PFIA. Collateral pledged and purchased securities shall be reviewed
at least monthly to assure the market value equals or exceeds the related Bedford investment.

All financial institution deposits shall be insured or collateralized in compliance with applicable State
law. Bedford reserves the right, in its sole discretion, to accept or reject any form of insurance or
collateralization pledged towards financial institution deposits. Financial institutions serving as
Bedford Depositories will be required to sign a depository agreement with Bedford. The collateralized
deposit portion of the agreement shall define Bedford’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:
a. The agreement must be in writing;
b. The agreement must be executed by the Depository and Bedford contemporaneously with
the acquisition of the asset;
c. 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 Bedford; and
d. The agreement must be part of the Depository’s “official record” continuously since its
execution.

a. Bedford shall accept Public Funds Collateral Act authorized forms of collateral.

All collateral shall be subject to inspection and audit by Bedford or Bedford’s independent auditors.

4. Repurchase Agreements. Repurchase agreements shall be consistent with the PFIA and GFOA
Recommended Practices on Repurchase Agreements.

VI. Investment Parameters.

1. Diversification. The investments shall be diversified by:

a. Limiting investments to avoid over concentration in securities from a specific issuer or

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