Funds not needed for current expenses or obligations of the city may be invested in the following instruments that have maturities of five years or less at the time of purchase, unless otherwise stated below:
(A) Obligations of the United States and of its agencies and instrumentalities, including obligations subject to repurchase agreements, if delivery of these obligations subject to repurchase agreements is taken either directly or through an authorized custodian. These investments may be accomplished through repurchase agreements reached with sources including but not limited to national or state banks chartered in Kentucky;
(B) Obligations and contracts for future delivery or purchase of obligations backed by the full faith and credit of the United States or a United States government agency, including but not limited to:
(1) United States Treasury;
(2) Export-Import Bank of the United States;
(3) Farmers Home Administration;
(4) Government National Mortgage Corporation; and
(5) Merchant Marine bonds;
(C) Obligations of any corporation of the United States government, including but not limited to:
(1) Federal Home Loan Mortgage Corporation;
(2) Federal Farm Credit Banks;
(3) Bank for Cooperatives;
(4) Federal Intermediate Credit Banks;
(5) Federal Land Banks;
(6) Federal Home Loan Banks;
(7) Federal National Mortgage Association; and
(8) Tennessee Valley Authority;
(D) Certificates of deposit issued by or other interest-bearing accounts of any bank or savings and loan institution which are insured by the Federal Deposit Insurance Corporation or similar entity or which are collateralized, to the extent uninsured, by any obligations, including surety bonds, permitted by KRS 41.240(4);
(F) Bankers' acceptances for banks rated in one of the three highest categories by a nationally recognized rating agency;
(G) Commercial paper rated in the highest category by a nationally recognized rating agency;
(H) Bonds or certificates of indebtedness of this state and of its agencies and instrumentalities;
(I) Securities issued by a state or local government, or any instrumentality of agency thereof, in the United States, and rated in one of the three highest categories by a nationally recognized rating agency; and
(J) Shares of mutual funds, each of which shall have the following characteristics:
(1) The mutual fund shall be an open-end diversified investment company registered under the Federal Investment Company Act of 1940, as amended;
(2) The management company of the investment company shall have been in operation for at least five years; and
(3) All of the securities in the mutual fund shall be eligible investments pursuant to this section.
(Municipal Order 2018-MO-03, passed 11-12-18)