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(A) Eligible investments shall be limited to obligations of the U.S. government, such as treasury bills, bonds and notes, time deposits with any bank or savings and loan whose principal offices are in North Carolina and the North Carolina Cash Management Trust. Time deposits in excess of the federal deposit insurance of $100,000 shall be placed with only those financial institutions which have been analyzed and determined credit-worthy by the Finance Director.
(B) For all deposits held in financial institutions which utilize the Option 2 method of collateralization, the Finance Director shall maintain all necessary documentation to show that the responsibility of monitoring collateralization levels is now with the State Treasurer.
(C) Certificates of deposit purchased by the city shall be delivered to the Finance Director.
(D) The Finance Director shall ensure proper diversification of the investment portfolio in order to minimize risks brought on by economic and market changes. To achieve this diversification:
(1) No more than 50% of the city's moneys shall be invested in a particular investment vehicle.
(2) No less than 30% of the total investment portfolio shall mature within 30 days. No less than 75% of the portfolio shall mature in 90 days and 100% of the portfolio shall mature within one year.
(3) No more than 50% of the city's total moneys shall be placed with a single financial institution.
(E) The Finance Director shall daily review the cash position of the city and decide what moneys can be invested for certain periods of time. If any investments are to be made, the Finance Director will make this determination by 11:00 a.m. each morning, and then institute a bidding process for city moneys as follows:
(1) Approved financial institutions shall be contacted by the Finance Director requesting bids on time deposits.
(2) All bids shall be submitted by 12:00 p.m., with interest rates quoted on a 365-day basis.
(3) In the event of matching bids, the financial institutions will be contacted, notified of similar bids, and asked if an upset bid will be placed.
(4) All certificates shall be delivered to the Finance Director by 2:00 p.m.
(`90 Code, Appendix A, § 33)