(a) As used in this section, "Other obligations" includes notes whether or not issued in anticipation of the issuance of bonds.
(b) “Interim moneys"may be invested in any instrument or security authorized as provided in Ohio R.C. Chapter 135 as amended, subject to the same maturity restrictions and percentage limitations as provided in Ohio R.C. Section 135.14, as amended.
(c) Nothing in the classifications of eligible obligations shall be construed to authorize any investment in a derivative, and no investment shall be made in a derivative. For purposes of this section, "derivative" means a financial instrument or contract or obligation whose value or return is based upon or linked to another asset or index, or both, separate from the financial instrument, contract, or obligation itself. Any security, obligation, trust account, or other instrument that is created from an issue of the United States Treasury or is created from an obligation of a federal agency or instrumentality or is created from both is considered a derivative instrument. An eligible investment described in this section with a variable interest rate payment, based upon a single interest payment or single index comprised of other eligible investments provided for in this section, is not a derivative, provided that such variable rate investment has a maximum maturity of two (2) years.
(d) The Treasurer may also enter into a written repurchase agreement with any eligible institution mentioned in Ohio R.C. 135.03 or any eligible dealer pursuant to subsection (l) of this section, under the terms of which agreement the Treasurer purchases, and such institution or dealer agrees unconditionally to repurchase, any of the securities listed in subsection (b), except letters of credit described in division (B)(2), of Ohio R.C. 135.18. The market value of securities subject to an overnight repurchase agreement must exceed the principal value of the overnight repurchase agreement by at least two percent (2%). A written repurchase agreement shall not exceed thirty days and the market value of securities subject to a written repurchase agreement must exceed the principal value of the term repurchase agreement by at least two percent (2%) and be marked to market daily. All securities purchased pursuant to this section shall be delivered into the custody of the Treasurer. A written repurchase agreement with an eligible securities dealer shall be transacted on a delivery versus payment basis. The agreement shall contain the requirement that for each transaction pursuant to the agreement the participating institution or dealer shall provide all of the following information:
(1) The par value of the securities;
(2) The type, rate, and maturity date of the securities; and
(3) A numerical identifier generally accepted in the securities industry that designates the securities.
The Treasurer shall not enter into a written repurchase agreement under the terms of which the Treasurer agrees to sell securities owned by the City to a purchaser and agrees with that purchaser to unconditionally repurchase those securities.
(e) The Treasurer shall not make an investment under this section, unless the Treasurer, at the time of making the investment, reasonably expects that the investment can be held until its maturity.
(f) The Treasurer shall not pay interim moneys into a fund established by another subdivision, Treasurer, governing board or investing authority, if that fund was established for the purpose of investing the public moneys of other subdivisions. This division does not apply to the payment of public moneys into either of the following:
(1) The Ohio Subdivision's Fund pursuant to subsection (b) of this section; and
(2) A fund created solely for the purpose of acquiring, constructing, owning, leasing or operating municipal utilities pursuant to the authority provided under Ohio R.C. 715.02 or Section 4 of Article XVIII, Ohio Constitution.
(g) The use of leverage, in which the Treasurer uses its current investment assets as collateral for the purpose of purchasing other assets, is prohibited. The issuance of taxable notes for the purpose of arbitrage is prohibited. Contracting to sell securities that have not yet been acquired by the Treasurer, for the purpose of purchasing such securities on the speculation that bond prices will decline, is prohibited.
(h) Whenever, during a period of designation, the Treasurer classifies public moneys as interim moneys, the Treasurer shall notify the Investment Board and Council of such action. The notification shall be given within thirty (30) days after such classification and in the event the Investment Board and/or Council does not concur in such classification or in the investments or deposits made under this section, the Investment Board and/or Council may order the Treasurer to sell or liquidate any of such investments or deposits, and any such order shall specifically describe the investments or deposits and fix the date upon which they are to be sold or liquidated. Investments or deposits so ordered to be sold or liquidated shall be sold or liquidated for cash by the Treasurer on the date fixed in such order at the then current market price. Neither the Treasurer nor the members of the Investment Board and/or Council shall be held accountable for any loss occasioned by sales or liquidations of investments or deposits at prices lower than their cost. Any loss or expense incurred in making such sales or liquidations is payable as other expenses of the Treasurer's office.
(i) If any investments or deposits purchased under the authority of this section are issuable to a designated payee or to the order of a designated payee, the name of the Treasurer and the title of the Treasurer's office shall be so designated. If any such securities are registrable either as to principal or interest, or both, then such securities shall be registered in the name of the Treasurer as such.
(j) The Treasurer is responsible for the safekeeping of all documents evidencing a deposit or investment acquired by the Treasurer under this section. Any securities may be deposited for safekeeping with a qualified trustee as provided in Ohio R.C. 135.18, except the delivery of securities acquired under any repurchase agreement under this section shall be made to a qualified trustee, provided, however, that the qualified trustee shall be required to report to the Treasurer, Council, Auditor of State, or an authorized outside auditor at any time upon request as to the identity, market value, and location of the document evidencing each security, and that if the participating institution is a designated depository of the subdivision for the current period of designation, the securities that are the subject of the repurchase agreement may be delivered to the Treasurer or held in trust by the participating institution on behalf of the subdivision. Interest earned on any investments or deposits authorized by this section shall be collected by the Treasurer and credited by the Treasurer to the proper fund.
Upon the expiration of the term of office of a Treasurer or in the event of a vacancy in the office of Treasurer by reason of death, resignation, removal from office, or otherwise, the Treasurer or the Treasurer's legal representative shall transfer and deliver to the Treasurer's successor all documents evidencing a deposit or investment held by the Treasurer. For the investments and deposits so transferred and delivered, such Treasurer shall be credited with and the Treasurer's successor shall be charged with the amount of money held in such investments and deposits.
(k) Whenever investments or deposits acquired under this section mature and become due and payable, the Treasurer 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 Ohio R.C. 135.01 to 135.21.
(l) (1) All investments, except for investments in securities described in subsection (b) of this section and for investments by the City in the issues of the City, shall be made only through a member of the National Association of Securities Dealers, through a bank, savings bank, or savings and loan association regulated by the Superintendent of Financial Institutions, or through an institution regulated by the Comptroller of the Currency, Federal Deposit Insurance Corporation, or Board of Governors of the Federal Reserve System.
(2) Payment for investments shall be made only upon the delivery of securities representing such investments to the Treasurer, Council, or qualified trustee. If the securities transferred are not represented by a certificate, payment shall be made only upon receipt of confirmation of transfer from the custodian by the Treasurer, Council, or qualified trustee.
(m) In making investments authorized by this section, the Treasurer or Council may retain the services of an investment advisor, provided the advisor is licensed by the Division of Securities under Ohio R.C. 1707.141 or is registered with the Securities and Exchange Commission, and possesses experience in public funds investment management, specifically in the area of state and local government investment portfolios, or their advisor is an eligible institution mentioned in Ohio R.C.135.03.
(n) (1) Except as otherwise provided in subsection (n)(2) of this section, no Treasurer shall make an investment or deposit under this section, unless there is on file with the Auditor of State a written investment policy approved by the Treasurer. The policy shall require that all entities conducting investment business with the Treasurer shall sign the investment policy of the City. All brokers, dealers and financial institutions, described in subsection (l)(1) initiating transactions with the Treasurer by giving advice or making investment recommendations shall sign the Treasurer's investment policy thereby acknowledging their agreement to abide by the policy's contents. All brokers, dealers, and financial institutions, described in subsection (l)(1), executing transactions initiated by the Treasurer, having read the policy's contents, shall sign the investment policy thereby acknowledging their comprehension and receipt.
(2) If a written investment policy described in subsection (n)(1) of this section is not filed on behalf of the City with the Auditor of State, the Treasurer shall invest the City's interim moneys only in interim deposits pursuant to subsection (b) of this section, no-load money market mutual funds pursuant to subsection (b) of this section, or the Ohio Subdivision's Fund pursuant to subsection (b) of this section.
(o) The Treasurer may enter into a written investment or deposit agreement that includes a provision under which the parties agree to submit to non-binding arbitration to settle any controversy that may arise out of the agreement, including any controversy pertaining to losses of public moneys resulting from investment or deposit. The arbitration provision shall be set forth entirely in the agreement, and the agreement shall include a conspicuous notice to the parties that any party to the arbitration may apply to the Court of Common Pleas of the county in which the arbitration was held for an order to vacate, modify or correct the award.
For purposes of this subsection, "investment or deposit agreement" means any agreement between a Treasurer and a person, under which agreement the person agrees to invest, deposit or otherwise manage the City's interim moneys on behalf of the Treasurer or agrees to provide investment advice to the Treasurer.
(p) In addition to the investments specified in Ohio R.C. 135.14, the Treasurer may invest interim moneys in linked deposits as authorized by ordinance adopted pursuant to Ohio R.C. 135.80.
(q) In addition to the authority provided in Ohio R.C. 135.14 or 135.143, the Treasurer may invest interim moneys in certificates of deposit in accordance with Ohio R.C. 135.144. (Ord. 139-2021. Passed 7-12-21.)