4.10.070 Collateralization.
(a) If City monies are invested in certificates of deposit or other deposits, the entire amount of principal and interest which will be payable to the City upon maturity of the investment must be collateralized by any combination of the following securities, at the following margin requirements and maturities:
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Collateral Type |
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|---|---|---|---|
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1. |
U.S. Treasury securities with a maturity date four years or less from the date of the City’s investment transaction. |
102% |
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|
2. |
Actively traded U.S. government agency or instrumentality securities, except mortgage pass-through securities, with one of the following: |
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|
a. |
Maturity date one year or less from the date of the City’s investment transaction. |
103% |
|
|
b. |
Maturity date between one and four years from the date of the City’s investment transaction. |
107% |
|
|
3. |
Government National Mortgage Association mortgage pass-through securities. |
120% |
|
|
4. |
Obligations of the State of Alaska and its political subdivisions secured by the full faith, credit, and taxing power thereof. |
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|
a. |
Maturity date one year or less from the date of the City’s investment transaction. |
102% |
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|
b. |
Maturity date between one and four years from the date of City’s investment transaction. |
107% |
|
|
c. |
FDIC and FSLIC Insurance. |
100% |
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(b) A financial institution shall not release, assign, sell, mortgage, lease, transfer, pledge, or grant a security interest in, encumber, substitute, or otherwise dispose of or abandon, all or any part of pledged collateral without prior written authorization of the City. [Code 1979 § 6.05.07.]