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INVESTMENT POLICY OF THE CITY OF COLTON <br />I. Policy Statement <br />The purpose of this Statement of Investment Policy is to provide governing guidelines for the City <br />of Colton for prudent cash management and investment of public funds until such time as the funds <br />are needed to pay the obligations of the City. <br />II. Investment Objective <br />. In accordance with Government Code Section 53600.3 the Treasurer is a trustee and therefore a fiduciary <br />subject to the prudent investor standard. In accordance with section 53600.5 "the primary objective of a <br />trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to <br />meet liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its <br />control. " <br />I, the Treasurer, shall govern investment activities pursuant to the "prudent man rule" as defined in <br />Section 2261 of the California Civil Code and as applied to the investment portfolio as a whole. <br />The investment principle stated here is that in: <br />"...investing ... property for the benefit of another, a trustee shall exercise <br />the judgment and care, under the circumstances then prevailing, which <br />men of prudence, discretion and intelligence exercise in the <br />management of their own affairs, not in regard to speculation, but in <br />regard to the permanent disposition of their funds, considering the <br />probable income, as well as the probable return of their capital..." <br />