(A) The standard of care to be applied by the CFO and theDirector, Treasury, shall be the “prudent 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 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 Act”. Specifically, this means that qualified investments need not be collateralized except when required by “the Act”. The CFO, his or her designee or the Executive Director may, at their discretion, require collateral based upon their assessment of market conditions.
(C) The Executive Director, the CFO and the 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 Metra procedures.
(D) 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. NIRC 99-2, passed 12-17-1999)