(A) Collateralization.
(1) Collateralization may be required, at the discretion of the city, on all funds held in banks or savings and loans above the insured limits provided by the FDIC or FSLIC.
(2) In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be a minimum of 102% of market value of principal and accrued interest.
(Prior Code, § 22-5-9)
(B) Safekeeping and custody. All security transactions, including collateral for repurchase agreements, entered into by the city shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by an independent, third-party custodian designated by the Treasurer and evidenced by safekeeping receipts and a written custodial agreement.
(Prior Code, § 22-5-10)