(A) All investment securities and any underlying collateral purchased by Metra shall be held in third party safekeeping accounts in accordance with “the Act” by institutions designated as “custodians”. The custodians shall issue safekeeping receipts to Metra listing the specific instruments, rates, maturities and other pertinent information for each investment. Safekeeping and collateralization shall be in compliance with requirements of “the Act”.
(B) Collateral for investments shall only be securities or financial instruments permitted by “the Act” with maturities not exceeding five years.
(C) Any investments constituting direct obligations of any bank, when deemed by Metra’s officers or this Policy to require collateralization, shall be fully collateralized in an amount equal to at least 100% of the market value of the collateral securities. If, in the opinion of the Executive Director or the CFO, market conditions warrant a more conservative policy, then a higher level of collateralization can be required by Metra.
(Ord. NIRC 99-2, passed 12-17-1999)