§ 2-506. Authorized instruments of investment.

The city shall purchase or sell investment securities at prevailing market rates. Authorized instruments are as follows:

(1) The Florida Local Government Surplus Funds Trust Fund (SBA).

(2) Negotiable direct obligations, or obligations the principal and interest of which are unconditionally guaranteed by the United States government. Such securities will include, but not be limited to, the following:

a. Cash management bills.

b. Treasury securities—State and local government series (SLGS).

c. Treasury bills.

d. Treasury notes.

e. Treasury bonds.

f. Treasury strips.

(3) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by United States agencies, provided such obligations are backed by the full faith and credit of the United States Government. Such securities will include, but not be limited to, the following:

a. United States Export-Import Bank Direct obligations or fully guaranteed certificates of beneficial ownership.

b. Farmers Home Administration Certificates of beneficial ownership.

c. Federal Financing Bank Discount notes, notes and bonds.

d. Federal Housing Administration Debentures.

e. General Service Administration Participation Certificates.

f. Government National Mortgage Association (GNMA).

Guaranteed mortgage-backed bonds.

Guaranteed pass-through obligations.

g. United States Maritime Administration Guaranteed Title XI.

h. New Communities Debentures United States Government guaranteed debentures.

i. United States Government Guaranteed Public Housing Notes and Bonds.

j. United States Department of Housing and Urban Development Project notes and local authority bonds.

(4) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by United States government agencies (federal instrumentalities) which are nonfull faith and credit agencies limited to the following:

a. Federal Farm Credit Bank (FFCB).

b. Federal Home Loan Bank or its district banks (FHLB).

c. Federal National Mortgage Association (FNMA).

d. Federal Home Loan Mortgage Corporation (Freddie-Macs) including Federal Home Loan Mortgage Corporation participation certificates.

e. Student Loan Marketing Association (Sallie-Mae).

(5) Nonnegotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state and/or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, F.S. ch. 280, and provided that the bank is not listed with any recognized credit watch information service.

(6) Repurchase agreements comprised of only those investments as authorized in paragraphs (b) and (d) above.

(7) Bankers' Acceptances which are inventory-based and issued by a domestic bank which has an unsecured, uninsured and unguaranteed obligation rating of at least "Prime-1" and "A" by Moody's Investors Service and "A-1" and "A" by Standard & Poor's Corporation and ranked in the top fifty (50) United States banks in terms of total assets by the American Banker's yearly report.

(8) Commercial Paper of any United States company which are rated, at the time of purchase, "Prime-1" by Moody's and "A-1" by Standard & and Poor's (prime commercial paper); if backed by a letter of credit (LOC), the long-term debt of the LOC provider must be rated at least "A" by at least two (2) nationally recognized rating agencies, and the LOC provider must be ranked in the top fifty (50) United States banks in terms of total assets by the American Banker's yearly report.

(9) State and/or local government taxable and tax-exempt debt, general obligation and/or revenue bonds rated at least "Aa" by Moody's and "AA" by Standard & Poor's for long-term debt, or rated at least MIG-1 by Moody's and SP-2 by Standard & Poor's for short-term debt.

(10) Fixed income mutual funds comprised of only those investment instruments as authorized in paragraphs (2), (3), (4), and (9) above.

(Ord. No. 95-44, § 1, 12-19-95)