Page 334 - CityofHasletFY25AnnualBudget

3. The Investment Officer may not acquire or otherwise obtain any authorized
investment from a person who has not delivered to the City the instrument
required by the preceding paragraph.

X. SAFEKEEPING AND CUSTODY

A. Insurance or Collateral

All deposits and investments of City funds other than direct purchases obligations of the
United States, its agencies and instrumentalities, shall be secured by pledged collateral
to the extent and in the manner required by Chapter 2257, Texas Government Code. In
order to anticipate market changes and provide a level of security for all funds, the
collateralization level will be 105% of market value of principal and accrued interest on
the deposits or investments less any amount insured by the FDIC or FSLIC. Evidence
of the pledged collateral shall be maintained by the Investment Officer or a third party
financial institution. Repurchase agreements shall be documented by a specific
agreement noting the collateral pledge in each agreement. Collateral shall be reviewed
monthly to assure that the market value of the pledged securities is adequate.

B. Safekeeping Agreement

Collateral pledged to secure deposits of the City shall be held by a safekeeping
institution in accordance with a Safekeeping Agreement which clearly defines the
procedural steps for gaining access to the collateral should the City determine that the
City’s funds are in jeopardy. The safekeeping institution, or Trustee, shall be the
Federal Reserve Bank or an institution not affiliated with the firm pledging the collateral.
The safekeeping agreement shall include the signatures of authorized representatives
of the City, the firm pledging the collateral, and the Trustee.

C. Collateral Defined

The City shall accept only the following as collateral:

1. FDIC and FSLIC insurance coverage.

2. A bond, certificate of indebtedness, or Treasury Note of the United States, or
other evidence of indebtedness of the United States that in the opinion of the
Attorney General of the United States is a general obligation of the United States
and backed by its full faith and credit.

City of Haslet Financial Policy

Haslet Adopted Budget FY 2024-2025 332