(A) Collateralization will be required on two types of investments: certificates of deposit and repurchase (and reverse) agreements. To anticipate market changes and provide a level of security for all funds, the collateralization level will be no less than 105% of market value of principal and accrued interest.
(B) The city chooses to limit collateral to the approved collateral list provided in the Michigan Compiled Laws Annotated.
(C) Collateral will always be held by an independent third party with which the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the city and retained.
(D) The right of collateral substitution is permitted.
(Ord. 521, passed 6-13-2006)