(a) Authorized Investments, except Demand deposits, non-negotiable certificates of deposit and City's Securities, shall be deposited for safekeeping with a Custodian, which shall not be the vendor of the Authorized Investment, except that Repurchase Securities shall be deposited with a Custodian other than the City Treasurer. A non-negotiable certificate of deposit in the name of the City may remain for safekeeping with the issuing Depository or Federal Deposit Insurance Corporation member bank or savings and loan association if a safekeeping receipt is delivered by the Depository or Federal Deposit Insurance Corporation member bank or savings and loan association to the City Treasurer at the time of purchase of said certificate, acknowledging that such certificate of deposit is owned by and held in safekeeping for the City. The City Treasurer may act as Custodian for City's Securities even if the City is also the vendor of said securities.
(Ord. 182-13. Passed 4-30-13.)
(b) All Eligible Collateral shall be deposited with a Custodian and that Custodian shall promptly provide the City Treasurer with a safekeeping receipt signed by the Custodian acknowledging that such Eligible Collateral has been deposited with the Custodian and that it is held for the benefit of the City as provided in this chapter. Upon any substitution of Eligible Collateral, the Custodian shall supply a safekeeping receipt signed by it for the Eligible Collateral then being deposited and the City Treasurer shall surrender to the Custodian the safekeeping receipt with respect to the Eligible Collateral which has been released.
(c) A Custodian shall not hold Repurchase Securities sold under a Repurchase Agreement by, or Eligible Collateral pledged as such for deposits with, that same Custodian as a Depository.
(d) All purchases of Authorized Investments from a Securities Dealer other than the Central Depository and sales of Authorized Investments to a Securities Dealer shall be settled through the designated Custodian on a delivery-versus-payment (DVP) basis.
(Ord. 334-00. Passed 6-6-00.)