A. In connection with, or incidental to, the issuance or carrying of bonds, or the acquisition or carrying of any investment or program of investment with respect to bonds, the City Manager or the Finance Director may, on the City's behalf, enter into any contracts that (s)he determines to be necessary or appropriate to place the obligation or investment of the City (as represented by the bonds, investment, or program of investment) and the contract or contracts, in whole or in part, on the interest-rate, currency, cash-flow, or other basis he or she desires, including the following:
1. Contracts commonly known as interest-rate-swap agreements, currency-swap agreements, forward-payment-conversion agreements, and futures.
2. Contracts providing for payments based on levels of, or changes in, interest rates, currency-exchange rates, or stock or other indices.
3. Contracts to exchange cash-flows or a series of payments.
4. Contracts to hedge payment, currency, rate, spread, or similar exposure, including interest-rate floors or caps, options, puts, and calls.
5. Contracts permitted by the related issuing instrument.
B. Each of the City Manager and the Finance Director may also enter into these contracts in connection with, or incidental to, entering into or maintaining any agreement that secures bonds.
C. These contracts must contain the payment, security, default, remedy, and other terms the City Manager or the Finance Director determines to be appropriate. When determining the terms of, and the other parties to, these contracts, the City Manager or the Finance Director shall give due consideration to the creditworthiness of the other parties, including any ratings of the parties by a nationally recognized rating agency. (Ord. 2018-02, 4-3-2018)