(A)   It is the policy of the city to require that all cash and investments maintained in any financial institution named as a depository be collateralized. In order to anticipate market changes and provide a level of security for all funds, the collateralized level shall be one hundred percent (100%) of the market value of principal, plus accrued interest. Collateral shall be limited to the types of instruments authorized as collateral for state funds in KRS 41.240.
   (B)   Collateral shall always be held by an independent third-party custodian with whom the city has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the city and retained by the City Clerk-Treasurer. The right of collateral substitution is hereby granted.
(Ord. 12-94-1, passed 12-19-94)