(a) "Appeal Process" means a process by which a financial institution meeting all of the requirements of a Depository except the Equity Capital minimum may apply to the Investment Advisory Committee for consideration of its qualifications to obtain the Committee's recommendation to City Council that the financial institution be granted Depository status on an exception basis. If the Investment Advisory Committee considers such an exception to be appropriate, it shall make a recommendation to City Council requesting approval of such action. An ordinance approved by City Council shall be necessary to designate such financial institution as a Depository under this process. In order to merit recommendation to City Council by the Investment Advisory Committee, the financial institution must demonstrate that it is, at a minimum, in compliance with the current capital adequacy requirements established by the appropriate regulatory agency having authority over the financial institution. Approval as a Depository under this process shall be for a maximum of two years, after which the financial institution must reapply to the Investment Advisory Committee for continued approval. This process shall be carried out in such manner as the Investment Advisory Committee shall determine.
(b) "Authorized Investments" means
(1) Certificates of deposits.
A. Negotiable interest-bearing time certificates of deposit.
B. Non-negotiable interest-bearing time certificates of deposit.
C. Federally insured certificates of deposit initiated through a reciprocal network of banks or savings and loan associations that are members of the Federal Deposit Insurance Corporation.
(2) City's Securities.
(3) Demand deposits which bear interest.
(4) Government Agencies and Instrumentalities.
(5) Government Securities.
(6) Repurchase Securities.
(7) Municipal Securities.
(8) Non-demand savings accounts.
(9) State Treasurer's Investment Pool (STAR Ohio) created pursuant to Ohio R.C. 135.45.
(10) STAR Plus Federally Insured Cash Account.
(Ord. 182-13. Passed 4-30-13.)
(c) "City" means the City of Toledo.
(d) "Eligible Collateral" means securities, as to which no lien or other encumbrance exists at the time of pledging, pledged by a Depository to secure or guarantee the repayment by the Depository of funds deposited or invested by the City with that Depository. The following securities are eligible to be pledged as collateral:
(1) Bonds, notes or other direct obligations of the United States, or bonds, notes or obligations guaranteed as to the timely payment of principal and interest by the United States or those for which the faith of the United States is pledged for the payment of principal and interest thereon by language appearing in the instruments specifically providing such guarantee or pledge and not merely by interpretation or otherwise.
(2) Bonds, notes, debentures or other obligations issued by any federal government agency or the Export-Import Bank of Washington.
(3) Bonds or other obligations of the State.
(4) City's or Municipal Securities.
Eligible Collateral may be pledged either as "Specific Collateral" or "Pooled Collateral", as defined herein.
(e) "Equity Capital" means ownership interest in a Depository which is represented by (1) the par value of common and preferred stock, if any, (2) additional paid-in capital and (3) retained earnings or retained income.
(f) "Investment Portfolio" means those authorized investments made by the City for the purpose of earning a monetary return, including interest, on the amount invested.
(g) "Municipal Securities" means those securities of political entities other than the City which are rated at the time of acquisition by Moody's or Standard and Poor's in at least the third highest category when rated with a long term rating or in the highest category when rated with a short term rating.
(h) "Pooled Collateral" means Eligible Collateral which is placed by a Depository in a single pool and which is pledged as security for deposits or investments of funds of the City and one or more other political entities held by that Depository.
(i) "Specific Collateral" means Eligible Collateral which is specifically pledged by a Depository to secure deposits or investments of funds of the City.
(j) "State" means the state of Ohio.
(Ord. 95-97. Passed 2-18-97.)