§ 70.006 PERMITTED INVESTMENTS.

   (A)   Investment and reinvestment of cash assets, except those specifically excluded from this Policy, are authorized for public agencies under the provisions of the Public Funds Investment Act, as amended, (30 ILCS 235/0.01 et seq.) and subject to the terms and conditions provided (see Exhibit A).

   (B)   (1)   Contained in the Act are specific requirements pertaining to investment instruments, maturities, quality, collateral and safekeeping to which Metra must adhere.

      (2)   In addition, the following restrictions apply to Metra investments.

         (a)   Investment in savings and loan associations shall only be to the maximum amount insured by the Federal Deposit Insurance Corporation (FDIC).

         (b)   No investments shall be made in any credit union.

(Ord. NIRC 99-2, passed 12-17-1999)

§ 70.007 DIVERSIFICATION OF INVESTMENTS.

   In addition to the limitations imposed by law and this Policy, Metra will diversify its investments permitted by “the Act” to avoid incurring unreasonable risks associated with over-investing in specific instruments, individual qualified institutions or certain maturities in accordance with the following guidelines.

   (A)   Diversification of permitted investments. See the following table.

Diversification of Permitted Investments	Maximum Percent of Portfolio
Bonds, notes, certificates of indebtedness, treasury bills or other securities which are guaranteed by the full faith and credit of the United States	100%
Bonds, notes, debentures and similar obligations of United States Government Agencies. Includes Federal Land Bank, Federal Intermediate Credit Bank, Banks for Cooperatives, Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation and any other agency created by an Act of Congress	25%
Interest-bearing accounts, certificates of deposit, interest bearing time deposits or other direct obligations of any FDIC insured bank, as defined in the Illinois Banking Act, or savings and loan associations permitted by this Policy	100%
Commercial paper, as limited by paragraph 2 (a)(4) of the Act (short term obligations of corporations organized in the United States with assets exceeding $500 million with obligations rated at time of purchase by 1 of the 3 highest classifications established by at least 2 standard rating services, do not mature more than 180 days from date of purchase, do not exceed 10% of the corporation’s outstanding obligations and no more than 1/3 of the agency’s funds may be invested in short term obligations of corporations)	33-1/3%
Money Market Mutual Funds registered under the Investment Company Act of 1940, as limited by paragraph 2 (a)(5) of the Act	20%
Short term obligations of the Federal National Mortgage Association	25%
The Illinois Fund	25%
Repurchase Agreements (Repos), as limited by paragraph 2 of the Act	50%

 

   (B)   Diversification by qualified institution.

      (1)   Certificates of deposit (CDs) - commercial banks. No more than 20% of the total portfolio with any one institution; and, the amount of the CDs over FDIC insurance coverage shall not exceed 15% of the combined capital stock and surplus of the institution.

      (2)   Commercial paper. No more than 10% of the total portfolio invested in any one issuer.

      (3)   Repurchase agreements. No more than 25% of the total portfolio at any one institution.

(Ord. NIRC 99-2, passed 12-17-1999)

§ 70.008 CASH FLOW AND INVESTMENT MATURITIES.

   The CFO or Director, Treasury, will arrange investment maturities to coincide with projected cash flow needs, taking into account expenditures as well as considering anticipated revenues. The CFO and the Director, Treasury, shall prepare and review a projected cash flow schedule quarterly and submit a report to the Executive Director.

(Ord. NIRC 99-2, passed 12-17-1999)

§ 70.009 SELECTION OF PERMITTED INVESTMENTS.

   (A)   Before liquid cash assets of Metra are invested or reinvested, or portfolio investments sold, quotes or proposals from qualified institutions will be solicited orally or in writing, as appropriate.

   (B)   Metra will seek to attain the quotes or proposals which provide a market average or better rate of return for the maturity required taking into account risk, constraints and cash flow, within the parameters of “the Act”, this Policy and Metra procedures.

(Ord. NIRC 99-2, passed 12-17-1999)

§ 70.010 QUALIFIED INSTITUTIONS AND ADVISOR SELECTION.

   (A)   The CFO will maintain a listing of financial institutions which are used for investment purposes (“qualified institutions”). This list will be updated as necessary by the CFO.

      (1)   The CFO shall require the financial institutions and securities dealers to provide copies of the most recent annual certified financial reports as well as any other reports deemed necessary by the CFO.

      (2)   Additional information that can be requested include consolidated reports of condition (“call” reports), copies of sworn statements of resources and liabilities and any other statements which financial institutions or securities dealers may be required to furnish to the Commissioner of Banks and Trust Companies, to the Comptroller of the currency or other applicable regulatory agencies.

      (3)   The CFO or Director, Treasury, shall review each financial institution’s and security dealer’s performance and compliance to determine whether it should be a qualified institution.

      (4)   Investments in certificates of deposit, time deposits, et. al. in excess of FDIC insurance shall be made only in banks which have capital stock and surplus over $10,000,000 as of the date of their most recent audited financial statements.

   (B)   Selection of investment advisors and other professional services relating to investment activity shall comply with the requirements of the Act and all Metra policies regarding selection of professional services.

(Ord. NIRC 99-2, passed 12-17-1999)

§ 70.011 INVESTMENTS WITH LOCAL AND DISADVANTAGED BUSINESS ENTERPRISES.

   Metra has established and will maintain a practice of investing a portion of its cash assets in qualified institutions within its six county service area and will seek to ensure maximum participation by qualified disadvantaged business enterprises to the extent available. Investments in qualified institutions with their principal office located within the central business district of the City of Chicago will not be considered as serving local areas.

(Ord. NIRC 99-2, passed 12-17-1999)