(A) The standard of [prudence] care to be applied by the [Assistant Treasurer] CFO and the [Division Manager, Cash Management,] Director, Treasury, shall be the “prudent [investor] person” rule. “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of the capital as well as the probable income to be derived”. The prudent [investor] person rule shall be applied in the context of managing the overall portfolio.
(B) The officers of Metra are authorized and encouraged by the Board of Directors to maximize the rate of return on cash to be invested to the extent allowed by the Public Funds Investment Act (30 ILCS 235/0.01 et seq.) (“the Act”). Specifically, this means that qualified investments need not be collateralized except when required by “the Act”. The [Assistant Treasurer] CFO, his or her designate or the Executive Director may, at their discretion, require collateral based upon their assessment of market conditions.
(C) The Executive Director, the [Assistant Treasurer] CFO and the [Division Manager, Cash Management] Director, Treasury, shall not be held personally responsible for a specific security’s credit risk or market price changes, provided that all such investments were made in accordance with the Act, this policy and applicable [administrative] Metra procedures [procedures of Metra].
(D) [The Assistant Treasurer and the Division Manager, Cash Management shall monitor Metra portfolio and the available markets. If deemed advantageous, they are authorized to adjust Metra’s investment portfolio.] The CFO or Director, Treasury, under the direction of the CFO, shall routinely monitor the contents of the portfolio, the available markets and the relative value of competing instruments, to assess the effectiveness of the portfolio in meeting the safety, liquidity, rate of return, diversification and general performances objectives, and shall adjust the portfolio accordingly.
(Ord. MET 99-24, passed 12-17-1999)