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INVESTMENT POLICY OF THE CITY OF COLTON SCANNED <br />Dp� <br />NDTES: <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 />H. Investment Objective <br />In accordance with Government Code Section 53600.3 the Treasurer is a trustee and therefore a <br />fiduciary subject to the prudent investor standard. in accordance with section 53600.5 "the primary <br />objective of a trustee shall be to safeguard the principal of the fiends under its control . The <br />secondary objective shall be to meet liquidity needs of the depositor. The third objective shall <br />be to achieve a market rate of return on the fiends tinder its 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 />t..investing...property for the benefit of another, a trustee shall exercise <br />he judgment and care, under the circumstances then prevailing, which <br />men of prudence, discretion and intelligence exercise in the management <br />of their own affairs, not in regard to speculation, but in regard to the <br />permanent disposition of their funds, considering the probable income, as <br />well as the probable return of their capital..." <br />Item No. 14 <br />