(a) Certificates of Deposit must be backed by collateral with a market value of at least 110 percent of market value of the certificate's value, less FDIC. The collateral for Certificates of Deposit may be held by a third party, or in a separate trust account, or in a pool of securities as defined in Ohio R.C. 135.181.
(b) Certificates of Deposits are preferred to be pledged by specific collateral as opposed to pooled collateral. Preference will be given to bids pledging specific collateral.
(c) The individual securities which collectively are the subject of a repurchase agreement become the property of the Village for the period of the agreement and are to be held by a third party for safekeeping. The Village's demand deposit accounts may be placed in an account which meets the polled collateral requirements stated in Ohio R.C. Chapter 135, although specific collateral is preferred. The collateral nay be held by the institution at which the active funds are deposited. Where administrative costs are comparable, preference will be given to those institutions which will provide specific collateral over those which provide pooled collateral.
(Ord. 1418. Passed 5-22-00.)