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F -1 <br />Not more than 10 percent of the City's investment portfolio shall be invested in <br />certificates of deposit with any one institution. CD's will not be placed for a <br />period of longer than one year. Further, an institution must meet the following <br />criteria to be considered by the City: <br />1. The institution must maintain at least $1 billion in assets ($100 million for <br />fully insured CD's of $100,000 or less). <br />2. The institution must have been in business at least three years. <br />3. The institution must have a net worth to asset ratio of at least 6 percent. <br />4. The institution must place and maintain on file with the City an audited <br />financial statement not more than one year old. <br />5. Interest shall be paid to the City on a monthly basis. <br />B. Negotiable Certificates of Deposit <br />As a matter of policy, the City invests in Negotiable Certificates of Deposit only <br />with U.S. Banks whose underlying securities are rated A -1 or P -1 by one of the <br />top two rating agencies and having assets in excess of $10 billion, so as to insure <br />security and a large, well - established secondary market. Ease of subsequent <br />marketability is further ascertained prior to initial investment by examining <br />currently quoted bids by primary dealers and the acceptability of the issuer by <br />these dealers. No one issuer shall exceed more than 10 percent of the portfolio, <br />and maturity shall not exceed one year. The California Government Code <br />Section 53601 limits investment in negotiable certificates of deposit to 30 percent <br />of the portfolio. <br />C. Bankers Acceptances <br />The City may invest only in Bankers Acceptances issued by the 100 largest banks <br />in the world, which are eligible for purchase by the Federal Reserve System, the <br />short term paper of which is rated at the highest category by Moody's and <br />Standard & Poor's. In the case of foreign banks, the Bankers Acceptances must <br />be written by their U.S. branches. Maximum maturity shall be 180 days. No <br />more than 30 percent of the City's overall investment portfolio shall be placed in <br />9 3