(10)AR 011910 Delagating Investing Authority to City Treasurer

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INVESTMENT POLICY OF THE CITY OF COLTON Schedule 1 The following list comprises those investments which are authorized by Section 53601 of the California Government Code and which are eligible for inclusion in the Treasurer's portfolio. Investment in any security, other than those authorized on this list, is prohibited. Authorized Securities Purchase Restrictions U.S. Treasury Bills U.S. Treasury Notes Bonds 1 Federal Farm Credit Bank Notes 1 Federal Home Loan Banks 1 Federal National Mortgage Association 1 Bankers Acceptances both Foreign and Domestic 2,3 Commercial Paper 4,5 Certificates of Deposit 1,6,7 Repurchase Agreements 8 Corporate Medium Term Notes 1,9 Money Market mutual funds 10 Local Agency Investment Fund Notes: 1. All maturities are limited to a period of 5 years (60 months) from the date of purchase. 2. Maturities may not exceed 180 days nor exceed 30% of the portfolio at the time of purchase. 3. Purchases are limited to the world's 150 largest banks by size of deposits. 4. Maturities may not exceed 180 days, nor exceed 25% of the Treasurer's portfolio. 5. Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical -rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): (1) The entity meets the following criteria: (A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by a nationally recognized statistical -rating organization (NRSRO). (2) The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by a nationally recognized statistical -rating organization (NRSRO). Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their money in eligible commercial paper. Local agencies, other than counties or a city and county, may purchase no more than 10 percent of the outstanding commercial paper of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635. No more than 10% of the portfolio may be invested in any one issuer. The portfolio may not hold more than 10% of any issuer's paper. 6. Purchase only insured or fully collateralized certificates of deposits issued on state or nationally chartered banks or savings and loan associations. 7. CD's may not exceed 20% of the Treasurer's portfolio at the time of purchase.