(A) It is the policy of the City of Hurstbourne to require that all cash and investments in excess of the amount insured by the FDIC 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 collateralization level shall be 100% of the market value of principal, plus accrued interest in accordance with KRS 91A.060. Collateral shall be limited to the types of instruments authorized as collateral for state funds in KRS 41.240 (Exhibit Three).
(B) Collateral shall always be held by an independent third-party custodian with whom the City of Hurstbourne has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City of Hurstbourne and retained by the Finance Committee. The right of collateral substitution is hereby granted.
(Ord. 12-06, passed 9-25-12)