(A) It shall be city policy to require that all funds on deposit in banks in excess of FDIC limits are secured by some form of collateral. Direct investments guaranteed by the United States or an agency of the United States do not require collateral.
(B) The city shall enter into a collateral agreement with any financial institution in which public funds are invested or deposited. This agreement shall be a three party agreement between the city, the bank depository and the designated custodian of the securities. The agreement shall outline the types of assets that may be pledged as collateral, the amount of collateral required and the placement procedures. The governing board of the financial institution, acting as depository, must further pass a resolution authorizing the officers of the institution to pledge securities as required by this policy. The City Treasurer must maintain a copy of this resolution in safekeeping and available for inspection.
(C) The city shall accept any of the following securities as collateral:
(1) Negotiable obligations of the United States Government.
(2) Negotiable obligations of any agency or instrumentality of the United States Government guaranteed by the full faith and credit of the United States Government.
(D) Pledged collateral will be held by the city or in safekeeping and evidenced by a safekeeping agreement. The collateral agreement will preclude the release of the pledged assets without the authorizing signature of the City Treasurer, but the agreement may allow for an exchange of collateral of like value.
(Ord. 99-O-17, passed - -99; Am. Ord. 2001-O-13, passed - -01)