(A) The laws of the state and prudent treasury management require that all purchased securities by bought on a delivery versus payment basis and be held in safekeeping by either the city, an independent third party financial institution, or the city's designated banking services depository.
(B) All safekeeping arrangements shall be designated by the Investment Officer and an agreement of the terms executed in writing. The third party custodian shall be required to issue safekeeping receipts to the city listing each specific security, rate, description, maturity, cusip number, and other pertinent information. Each safekeeping receipt will be clearly marked that the security is held for the city or pledged to the city.
(C) All securities pledged to the city for certificates of deposit or demand deposits shall be held by an independent third party bank doing business in Texas. The safekeeping bank may not be within the same holding company as the bank from which the securities are pledged.
(D) In order to anticipate market changes and provide a level of additional security for all funds, the collateralization level required will be 102% of the market value of the principal and accrued interest. Collateral will be held by an independent third party safekeeping agent.
(Ord. 1303, passed 9-21-2006; Ord. 19-1236, passed 11-7-2019)