129.11 ELIGIBLE INVESTMENTS.

   (a)   The Director of Finance or his designee may invest in any of the following classifications of obligations which are hereby determined to be eligible for investment of the Public Moneys of the City (“Eligible Investments”):

      (1)   United States Treasury bills, notes and bonds (excluding stripped principal or interest obligations of such issuances), or any other obligation or security issued by the United States Treasury or any other obligation guaranteed as to principal and interest by the United States;

      (2)   Bonds, notes, debentures or other obligations or securities issued by any federal government agency or instrumentality (excluding stripped principal or interest obligations of such issuances), including, but not limited to, the Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, Government National Mortgage Association, and Student Loan Marketing Association; provided that such securities shall be direct issuances of federal government agencies or instrumentalities;

      (3)   Bonds issued by the homeowners' loan corporation, as defined in Section 731.56 of the Ohio Revised Code;

      (4)    Bonds and notes of the State of Ohio;

      (5)    Bonds and notes of any municipal corporation, including the City, county, township or other political subdivisions of Ohio rated in not less than the third highest rating category by a nationally recognized rating agency with respect to such bonds or notes/as to which there is no default of principal, interest or coupons, provided, however, that bonds and notes of the City shall not be required to have a rating in order to be an Eligible Investment hereunder;

      (6)    A repurchase agreement between the Director of Finance or such Director's designee and any designated Eligible Depository mentioned in Section 135.03 of the Ohio Revised Code that is a member of the federal reserve system or federal home loan bank or any Qualified Securities Dealer if, and only if, under the terms of which agreement the Director of Finance or such Director's designee purchases for the City and such institution agrees unconditionally to repurchase within a period of thirty days securities described in subdivisions (1) or (2) of this Section 129.11(a) that will mature or are redeemable within five years from the date of purchase; provided that (A) the market value of such securities subject to a repurchase agreement that matures (i) on the business day immediately succeeding the business day on which such repurchase agreement was entered into shall be at least one hundred two percent (102%) of the principal amount of the repurchase agreement and (ii) on any other business day after the business day described in the immediately preceding item (A) shall be at least one hundred five percent (105%) of the principal amount of the repurchase agreement and (B) the repurchase agreement shall contain the requirement that for each transaction pursuant to such agreement the Eligible Depository or Qualified Securities Dealer shall provide all of the following information: (A) the par value of the securities subject to such agreement; (B) the type, coupon rate, if any, and maturity date of the securities; and (C) a numerical identifier generally accepted in the securities industry that designates the securities;

      (7)   Certificates of deposit of Eligible Depositories which may provide (and, if so, shall be shown on its face) that the amount of such deposit is payable upon written notice a specified period before the date of the scheduled maturity;

      (8)    Insured deposit accounts in Eligible Depositories paying interest at a rate greater than the interest rate paid on the City's Active Deposits, provided that such investments must be approved in writing by the Director of Finance and Director of Law and that such approval by the Director of Finance and Director of Law shall also include approval of the insurance provided to secure and protect the City's ability to recover the principal deposited in such deposit account;

      (9)    The Ohio Subdivision's Fund created pursuant to Section 135.45 of the Ohio Revised Code;

      (10)    Commercial paper notes issued by an entity that is defined in division (D) of Section 1705.01 of the Ohio Revised Code and that has assets exceeding five hundred million dollars ($500,000,000), to which notes all of the following apply:

         A.   The notes are rated at the time of purchase in the highest classification established by at least two nationally recognized standard rating services.

         B.   The aggregate value of the notes does not exceed ten percent (10%) of the aggregate value of the outstanding commercial paper of the issuing corporation.

         C.   The notes mature not later than one hundred eighty (180) days after purchase; and

      (11)    Bankers acceptances of banks that are insured by the federal deposit insurance corporation and to which both of the following apply:

         A.   The obligations are eligible for purchase by the federal reserve system.

         B.   The obligations mature not later than one hundred eighty (180) days after purchase.

   (b)    The Director of Finance and his designee, the Mayor, the Director of Law and the members of Council shall not be held accountable or personally liable for any loss occasioned by the sale of any Eligible Investment authorized pursuant to subsection (a) hereof at prices lower than its cost or balance. Any loss or expense in making such sales or closings shall be payable as other expenses of the City.

   (c)    The members of Council, the Mayor, the Director of Law and the Director of Finance and such Director's designees, shall not be personally liable for or with respect to the purchase of any Eligible Investment authorized as investments pursuant to subsection (a) hereof; and the members of Council, the Mayor and the Director of Law shall not be personally liable for any unauthorized deposit or investment by the Director of Finance or such Director's designee.

   (d)    Upon the expiration of the term of office of the Director of Finance or in the event of a vacancy in the office of the Director of Finance by reason of death, resignation, removal from office or otherwise, the Director of Finance or his legal representative shall transfer and deliver to his successor all Eligible Investments held by him. For the Eligible Investments so transferred and delivered, such Director of Finance shall be credited with, and his successor shall be charged with, the amount of money invested in such Eligible Investments.

   (e)    Whenever Eligible Investments acquired under this Section mature and become due and payable, the Director of Finance shall present them for payment according to their tenor, and shall collect the moneys payable thereon. The moneys so collected shall be treated as Public Moneys subject to the provisions of this chapter.

   (f)    The Director of Finance or his designee shall maintain accounts in which he shall make appropriate entries of all transactions relating to the investment of Public Moneys.

   (g)    Interest earned on any Eligible Investments authorized by this Section shall be collected by the Director of Finance and credited by him to the proper fund of the City as required by law.
(Ord. 2004-178. Passed 12-7-04.)