The city may invest in any type of security allowed for in state statutes regarding the investment of public funds. Current approved investments include:
(A) Bonds, notes, certificates of indebtedness, treasury bills, treasury strips or other securities, including obligation of the Governmental National Mortgage Association, (GNMA), which are guaranteed by the full faith and credit of the government of the United States of America, or other similar obligations of the United States of America or its agencies;
(B) Interest bearing savings accounts, interest bearing certificates of deposit or interest bearing time deposits or any other investment constituting direct obligations of any institution as defined by the Illinois Banking Act, being 205 ILCS 5/1 et seq., and is insured by the Federal Deposit Insurance Corporation;
(C) The Illinois Funds, including the Illinois Public Treasurer’s Investment Pool, (IPTIP);
(D) Short-term obligations of corporations (banker’s acceptances and commercial paper) organized in the United States with assets exceeding $500,000,000 and rated at the time of purchase at the highest classification established by at least two standard rating services. Such investments must mature within 180 days from the date of purchase and may not exceed 10% of the corporations outstanding obligations. No more than a combined 33% of the city’s funds may be invested in banker’s acceptances or commercial paper at any given time;
(E) Short-term discount obligations of the Federal National Mortgage Association (FNMA) or in shares of other forms of securities legally issued by savings and loan associations incorporated under the laws of this state or any other state or under the laws of the United States. Investments may be made only in those savings and loan associations of which the shares, or investment certificates are insured by the Federal Deposit Insurance Corporation (FDIC); and
(F) Consistent with the GFOA Recommended Practice on Use of Derivatives by State and Local Government, (see Appendix B), extreme caution should be exercised in the use of derivative instruments.
(Prior Code, § 38.09) (Ord. 99-286, passed 12-14-1999)