§ 23.408  AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
   (A)   The City Clerk/Treasurer shall maintain a list of financial institutions authorized to provide investment services to the city.  In addition, a list shall be maintained of approved security brokers/dealers selected by creditworthiness, who maintain an office in the Commonwealth of Kentucky.
   (B)   All financial institutions and broker/dealers who desire to provide investment services to the city shall supply the City Clerk/Treasurer with information sufficient to adequately evaluate the institution and answer any and all inquiries posted by the City Clerk/Treasurer or the governing body, including the following information:
      (1)   Audited financial statements;
      (2)   Regulatory reports on financial condition;
      (3)   Written memorandum of agreement for the deposit of public funds or trading resolution, as appropriate;
      (4)   Proof of National Association of Security Dealers certification and proof of state registration;
      (5)   Any additional information considered necessary to allow the City Clerk/Treasurer to evaluate the creditworthiness of the institution.
   (C)   No financial institution shall be selected as a depository of the city’s funds if the city funds on deposit at any time will exceed five percent (5%) of the institution’s capital stock and surplus.
   (D)   The City Clerk/Treasurer shall evaluate the financial capacity and creditworthiness of financial institutions and broker/dealers prior to the placement of the city’s funds.  The City Clerk/Treasurer shall conduct an annual review of the financial condition and registrations of financial institutions and broker/dealers and, based on the review, make any recommendations regarding investment policy or program changes determined to be necessary.
(Ord. 94-38, passed 11-8-94)