(A) Generally. All investment transactions, including, but not limited to, those completed by telephone, shall be supported in writing and approved by an investment officer. Written communication may be made by facsimile on city letterhead.
(B) Book entry. The city shall strive to invest in book-entry securities, thus avoiding physical delivery of securities. No securities shall be physically stored or kept in the offices of the city.
(C) Custodial safekeeping.
(1) Securities purchased from any bank or dealer, including collateral when appropriate, shall generally be placed with the appropriate trustee or with an independent third party for safekeeping.
(2) Any security that is able to be wired over the FedWire will be kept safe in a customer or trust account in a Federal Reserve Bank through the appropriate custodial bank.
(3) Any security not able to be wired over the FedWire, that is held by the Depository Trust Corporation (DTC), shall be held in the name of the city or trustee, if applicable, through the appropriate custodial bank.
(4) Securities may be held by a broker/dealer to the extent the broker/dealer serves as an agent for the city or the appropriate trustee. No securities will be held by a broker/dealer without evidence of adequate Securities Investor Protection Corporation (SIPC) insurance (or protection judged to be equivalent by the city or the appropriate trustee).
(D) Delivery vs. payment. All securities will be held in accounts in the name of the city or the appropriate trustee. Securities will be deposited prior to the release of funds. Securities held by a third party custodian will be evidenced by safekeeping receipts.
(Prior Code, § 2-537) (Ord. 13-33, passed 12-9-2013)