2004 AGN SEP 07 I20 - Laserfiche WebLink

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INVESTMENT POLICY OF THE CITY OF COLTON Schedule II Authorized Dealer List It is prohibited for a transaction to be entered into with any securities broker, dealer or bank investment department prior to that firm being designated an Authorized Dealer, and placed on the Authorized Dealer List. For a firm to become authorized, it must demonstrate that it will add value to the Treasurer's efforts to best manage the cash portfolio, as well as fulfill certain other requirements. Firms that have a minimum of $1,000,000 in capital, and are either A) Primary Dealers, or B) headquartered in the State of California or the City of New York or its enviorns or C) a direct issuer of a security type normally purchased by the treasurer, may apply to become an Authorized Dealer. If meeting the above restrictions, a salesperson or dealer may apply by sending the Treasurer their most recent annual and interim audited financial statements and a letter furnishing: 1) Their reasons for believing they would add value to the present coverage. 2) A roster of those markets they participate in and those types of securities they as a firm, regularly issue or regularly hold dealer -trading positions in. 3) A list of three references, at least one being California municipal treasurer, including telephone numbers that the treasurer may contact. The Treasurer will investigate the requesting firm and the applying salesperson through a variety of sources, including the N.A.S.D., to determine market participation, knowledge, reputation and financial stability. The salesman and his supervisor will be expected to have a working knowledge of the appropriate sections of the California Government Code, sufficient experience in covering municipal accounts, a willingness to well serve their customers, a complete and total understanding of this investment policy, and demonstrate an ongoing ability to work with the Treasurer and staff. The Treasurer will review all new requests at the end of each quarter, and if the decision is made that additional dealers would be beneficial to servicing the portfolio's needs, those dealers selected will be informed of their addition to the Authorized Dealer List at any time, solely at the discretion of the Treasurer. The Treasurer, or Treasury staff, are prohibited from dealing with a salesman, broker, or account executive from any broker, dealer or bank investment department until the "Acknowledgment" form found on the last page of the Trading Authorization and Agreement is signed by all parties and received by the Treasurer. The trading Authorization and Agreement is sent out to all approved dealers, and is an integral part of this Policy Statement for Brokers/Dealers etc. doing investment business with the Treasurer. Effective: ,September 7, 2004 Michael J. Williams CPA Treasurer 6