143.07 INVESTMENTS.

   (a)   All public monies of the City not deposited in active deposits, or kept by the Director as a cash reserve as may be prescribed by the Director, shall be invested by the Director pursuant to this section and the Cash Management and Investment Policy promulgated pursuant to Section 143.09. All securities shall be purchased through eligible depositories or securities dealers or brokers designated pursuant to Section 143.06. All security transactions shall occur on a delivery versus payment basis.

   (b)   The Director may invest in any of the following classifications of obligations, which are hereby determined to be eligible investments:

      (1)   Bonds or notes which are issued by and are the obligations of the City;

      (2)   Bonds, notes, certificates of indebtedness, or other securities issued by, and constituting direct obligations of, or guaranteed by, the United States, or those for which the faith of the United States is pledged for the payment of principal and interest thereon, including without limitation Treasury Bills, Treasury Notes, Treasury Bonds, Farmers Home Administration Insured Notes (FHAs) and securities issued by the Government National Mortgage Association (GNMAs) that mature or are redeemable by the City no more than five (5) years from their purchase date;

      (3)   Bonds or notes which are issued by and are the obligations of the State of Ohio, provided that such bonds or notes mature or are redeemable by the City no more than five (5) years from their purchase date and have a rating assigned to them by Standard & Poor Corporation or Moody's Investor Service, Inc. which rating:

         A.   As to bonds, is one of the two highest rating categories that may be assigned; and

         B.   As to notes, is the highest rating category that may be assigned;

      (4)   A specific repurchase agreement with a term of not to exceed one (1) year with any eligible depository or securities dealer or broker designated pursuant to Section 143.11 which has entered into a master repurchase agreement pursuant to division (c) of this section, under the terms of which agreement the Director purchases for the City, and such eligible depository or securities dealer or broker agrees to unconditionally repurchase, any of the securities listed in divisions (b)(1), (b)(2) or (b)(3) of this section;

      (5)   Fully insured and/or fully collateralized certificates of deposit of eligible depositories, or insured certificates of deposit as permitted by Section 135.144 of the Ohio Revised Code as currently in effect and as may be hereafter amended; and

      (6)   U.S. government money market mutual funds, as defined in the Cash Management and Investment Policy promulgated pursuant to Section 143.09, issued by open ended investment companies registered with the U.S. Securities and Exchange Commission which have the objective of maintaining a constant net asset value per share, and which have portfolios limited to fully delivered repurchase agreements or securities described in division (b)(2) of this section with an average maturity of one hundred twenty (120) days or less.

   (c)   Specific repurchase agreements authorized by division (b)(4) of this section shall be governed by the requirements of the Master Repurchase Agreement entered into between the City and all eligible depositories or securities dealers or brokers designated pursuant to Section 143.06. The Director may enter into a specific repurchase agreement only if:

      (1)   The Director and the eligible depository or securities dealer or broker designated pursuant to Section 143.06 have entered into a Master Repurchase Agreement on a continuing basis during a specified period which shall not extend beyond the end of the period of designation of the eligible depository pursuant to Section 143.03 or of the securities dealer or broker pursuant to Section 143.06;

      (2)   The market values of purchased securities on the purchase date are at least as follows:

         A.   One hundred and one percent (101%) of the purchase price if the purchased securities are U.S. Treasury Bills, Notes, or Bonds which mature in one (1) year or less from the purchase date;

         B.   One hundred and two percent (102%) of the purchase price if the purchased securities are U.S. Treasury Bills, Notes, or Bonds which mature in more than one (1) year but not more than five (5) years from the purchase date; and

         C.   One hundred and two percent (102%) of the purchase price if the purchased securities are U.S. government agency securities which mature not more than five (5) years from the purchase date.

      (3)   There is a simultaneous delivery of purchased securities and payment of the purchase price through a custodial bank pursuant to a separate agreement by and between the City and the custodial bank;

      (4)   In the event a City depository or securities dealer or broker fails to perform any of its obligations under the specific repurchase agreement, the City depository or securities dealer or broker accept liability for the repurchase price and interest thereon at the same rate as the specific repurchase agreement plus reasonable counsel's fees and other costs and expenses incurred by the City as a result of the default and, further, the custodial bank agrees to remit to the City all purchased securities, margin securities and cash delivered to satisfy the margin requirement, and the City may sell any or all purchased securities and/or margin securities to any purchaser at private or public sale and apply the proceeds thereof to the City depository's or securities dealer or broker's liability;

      (5)   The master repurchase agreement may be terminated by either party on ten (10) business days written notice to the other party and the custodial bank, provided, however, that such termination shall not affect any specific outstanding repurchase agreement.

   (d)   The Director may sell any eligible investments or close any accounts held as investments for cash for a sum not less than their current market price. Any loss or expense in making such sales or closings shall be payable as other expenses of the City.

   (e)   Investments authorized by division (b) of this section shall not be made at a price in excess of the current market price or at a yield below the current market yield.

   (f)   If any eligible investments purchased under the authority of this section are issuable to a designated payee or to the order of a designated payee, the name of the Director and the title of the Director's office shall be so designated. If any such eligible investments may be registered either as to principal or interest or both, then such securities shall be registered in the name of the Director as such.

   (g)   Interest earned on any eligible investments authorized by this section shall be collected by the Director and credited by the Director to the proper fund of the City as required by law.

   (h)   Whenever eligible investments acquired pursuant to this section mature and become due and payable, the Director shall present them for payment according to their tenor, and shall collect the monies payable thereon. The monies so collected shall be treated as public monies subject to the provisions of this chapter.

   (i)   The Director shall maintain accounts on which shall be made appropriate entries of all transactions relating to the investment of public monies.

   (j)   In order to be eligible investments under divisions (b)(2) and (b)(3) of this section, there must be no outstanding default in the payment of principal of or interest on such securities, and the securities must mature or be subject to redemption at the option of the City within five years from the date the purchases such securities.

(Ord. 13-27. Enacted 3-27-13.)