Loading...
HomeMy Public PortalAbout14294ORDINANCE NO. 14294 AN ORDINANCE repealing Ordinance No. 13806, adopted February 13, 2014, and enacting a new Ordinance in lieu thereof, to update The District’s Investment Policy, to revise the list of Securities Dealers to invest with, and to revise the list of acceptable Commercial Paper to invest in; and WHEREAS, the revised Securities Dealer list and revised list of acceptable Commercial Paper are within the parameters set by the District’s Investment Policy. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: Section One. Investment Policy The Secretary-Treasurer shall prepare, maintain and adhere to a written investment policy which shall include an asset allocation plan which limits the total amount of District funds which may be invested in any particular investment authorized by law. The Secretary-Treasurer shall present a copy of such policy to the Board of Directors annually or at any time the written investment policy is amended, attached hereto as Exhibit "A" Section Two. Time and Demand Deposits – Approved Depositary Banks/Contracts A. The Secretary-Treasurer shall maintain a list of banks or trust companies, situated in the District, approved for deposit of District funds ("Approved Depositary Banks"). The list of Approved Depositary Banks, attached hereto as Exhibit "B", is hereby approved; provided that such list may be modified from time to time by resolution of the Board of Trustees of the District. B. The Secretary-Treasurer shall determine, by the exercise of his best judgment, the amount of District funds that are not immediately needed for the purpose to which such funds are applicable, and shall keep on demand deposit in Approved Depositary Banks the amount of District funds which he has so determined are needed for current operating expenses of the District and disburse the same as authorized by state law and the District's Plan. C. Within the parameters of the Secretary-Treasurer's written investment policy, the Secretary-Treasurer shall place the District funds which he has determined are not immediately needed for the purpose to which said funds are applicable, on time deposit drawing interest in Approved Depositary Banks, or place them outright or by repurchase agreement in Authorized Investments described in Section 3 of this Ordinance, as he in the exercise of his best judgment determines to be in the best overall interest of the District, giving due consideration to: (1) The preservation of such moneys; (2) The liquidity needs of the District; (3) The comparative yield to be derived therefrom; (4) The effect upon the economy and welfare of the people of Missouri of the removal or withholding from banking institutions in the District of all or some such District funds and investing same in obligations authorized in section 15, article IV of the Missouri Constitution; and (5) All other factors which to him/her as a prudent Secretary-Treasurer seem to be relevant to the welfare of the District in the light of the circumstances at the time prevailing. In making such deposits or investments, the Secretary-Treasurer shall follow the applicable investment strategy submitted to the Board of Trustees of the District as a part of his monthly report as required by Section 4 of this Ordinance; provided that the Secretary-Treasurer may make investments or deposits, which are not consistent with such investment strategy, when such action is, in the judgment of the Secretary-Treasurer, in the best interest of the District, taking into consideration the factors set forth in this Section, provided the Secretary-Treasurer will note such action in his next monthly report to the Board of Trustees of the District. D. In placing moneys on demand or time deposit, the Secretary-Treasurer shall use his best efforts to obtain three quotes from Approved Depositary Banks and shall place such funds with the Approved Depositary Bank selected by him/her, taking into consideration the quote of such Approved Depositary Bank and the factors set forth in Section C above. The Secretary-Treasurer shall maintain a record of all quotes received. The Secretary-Treasurer may place such funds with an Approved Depositary Bank, without obtaining quotes, when such action is, in the judgment of the Secretary-Treasurer, in the best interest of the District taking into consideration the factors set forth in Section C above, provided that the Secretary-Treasurer shall note such action in his next monthly report to the Board of Trustees of the District. E. The Executive Director and Secretary-Treasurer of the District are authorized and directed to execute a contract with each Approved Depositary Bank holding funds of the District. The contract shall be in substantially the form of Exhibit "C" attached hereto with such changes therein as shall be approved by the Executive Director, Secretary- Treasurer and General Counsel of the District, provided that such officers' signatures on such contract shall constitute conclusive evidence of the approval thereof. Section Three. Authorized Investments – Approved Securities Dealers - Contracts A. The Secretary-Treasurer may subscribe for or purchase outright or by repurchase agreement securities which are lawful for investment of the District's funds under state law and the District's Investment Policy ("Authorized Investments") which he, in the exercise of his best judgment, believes to be the best for investment of District funds at the time and in payment therefor may withdraw moneys from any bank account, demand or time, maintained by him/her. The Secretary-Treasurer may bid on subscriptions for such Authorized Investments in accordance with his best judgment. Such Authorized Investments must be purchased in accordance with applicable law and the District’s Investment Policy. The Secretary- Treasurer shall maintain a list of Approved Securities Dealers. The list of such Approved Securities Dealers, attached hereto as Exhibit "D", is hereby approved; provided that such list is in accordance with the District’s Investment Policy and may be modified from time to time by resolution of the Board of Trustees of the District. The Secretary-Treasurer shall maintain a list of Approved Commercial Paper. The list of such Approved Commercial Paper, attached hereto as Exhibit "F", is hereby approved; provided that such list is in accordance with the District’s Investment Policy and may be modified from time to time by resolution of the Board of Trustees of the District. B. The Executive Director and Secretary-Treasurer of the District are authorized and directed to execute a contract with each Approved Depositary Bank or each Approved Securities Dealer with whom the District enters into a repurchase agreement. The contract shall be in substantially the form of Exhibit "C" attached hereto with such changes therein as shall be approved by the Executive Director, Secretary-Treasurer, and General Counsel of the District, provided that such officers' signatures on such contract shall constitute conclusive evidence of the approval thereof. Section Four. Secretary-Treasurer's Report The Secretary-Treasurer shall prepare a monthly report to the Board of Trustees of the District relating to the deposit and investment of District funds pursuant to this Ordinance. The Secretary-Treasurer's monthly report shall include a prospective overview of the Secretary- Treasurer's investment strategy for the deposit and investment of District funds for the next succeeding monthly period and a report regarding the deposit and investment of District funds for the preceding monthly period including the performance of such funds for the reporting period. The District reports all holdings of Securities by portfolio on the web page daily for review as well as monthly (CFR) comprehensive financial reporting of asset allocation and compliance with Investment Policy. Section Five. Security for Safekeeping of District Funds For the security of the funds deposited by the Secretary-Treasurer under the provisions of this Ordinance, the Secretary-Treasurer shall, from time to time, submit a list of acceptable securities to be approved by resolution of the Board of Trustees of the District and the Secretary-Treasurer shall require of the Approved Depositary Banks as security for the safekeeping and payment of deposits, securities from the list provided for in this section, which list may include only securities of the kind and character permitted by state law and the District's Plan ("Approved Collateral"). The list of Approved Collateral, attached hereto as Exhibit "E" is hereby approved; provided that such list may be modified from time to time by resolution of the Board of Trustees of the District. Such securities shall be delivered to the Secretary-Treasurer or to a disinterested banking institution or safe depositary, as escrow agent or trustee, as directed by the Secretary-Treasurer. All securities will be held by third-party custodian designated by the Secretary-Treasurer and evidenced by safekeeping receipts. All trades where applicable will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an approved financial institution prior to the release of funds. Section Six. Authorized District Representatives All requests for transfers of funds from District accounts to other accounts of the District maintained at the same Approved Depositary Bank, other than transfers by check, may be authorized by telephonic, telegraphic, oral or written request received from an Authorized Representative of the District. A transfer of funds from District accounts in favor of third parties shall be authorized only at the request of any two Authorized Representatives of the District. All checks drawn on any accounts of the District shall be signed, either manually or by means of a check-signing machine, by any Authorized Representative of the District; provided that checks of $50,000 or more may not be signed by means of a check signing machine or other facsimile and must be signed by the manual signatures of two Authorized Representatives of the District. The Authorized Representatives of the District, which include the Secretary-Treasurer, Assistant Secretary-Treasurer, General Counsel, Attorney III, and Director of Information Services, and of the District are hereby approved; provided that the Board of Trustees may, from time to time, by resolution change such Authorized Representatives of the District. Section Seven. Official Bonds The Secretary-Treasurer of the District shall, before entering upon the discharge of his duties hereunder, give bond in the sum of not less than $1,000,000 to the District and any other Authorized Representative of the District shall give bond in the sum of not less than $500,000; provided that the District may purchase such bond in additional amounts which the Executive Director deems in the best interest of the District, taking into consideration the security of District funds as well as the cost of such bond. The bond shall be furnished with a surety company authorized to do business in the State of Missouri and shall be in such form as may be prescribed by the General Counsel of the District. The bond shall be filed in accordance with Section 7.070 of the District Plan. Section Eight. Prior Ordinances The provisions contained in this ordinance shall take the place of and supersede the provisions of all prior ordinances or resolutions relating to the same subject matter which are herewith inconsistent, including but not limited to Ordinance Nos. 7879, adopted August 9, 1989 and 10908, adopted February 8, 2001, and such ordinances are hereby repealed. Section Nine. FDIC Limits Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor. Section Ten. Check 21 Act The District follows the law related to the Check 21 Act. The Check 21 was enacted on October 28, 2004. The law allows the recipient of the original paper check to create a digital version of the original check, into an electronic format thereby eliminating the need for further handling of the physical document. Section Eleven. Electronic Payments The District issues payments using the EFT Electronic Funds Transfer process and adheres to the same approvals and guide lines as the issuance of checks. This is the District’s preferred method of payment. EXHIBIT B LIST OF APPROVED DEPOSITARY BANKS Bancorp South Bank of America, N.A. BMO Harris Bank Boulevard Bank Bremen Bank & Trust Company Carrollton Bank Cass Commercial Bank Citizens National Bank Commerce Bank of St. Louis Commerce Trust Commercial Bank of Westport Eagle Bank and Trust Company of Missouri Enterprise Bank & Trust EverBank FCB South County Bank Fifth Third Bank First Financial Bank First National Bank of St. Louis (Central Bancompany) Founders Bank Heartland Savings Bank Lindell Bank & Trust Company Main Street Bank & Trust (Lock-Box /Firstech Pay Station Pass Through) Montgomery 1st National Bank Northern Trust Bank PNC Bank Pulaski Bank Regions Bank, N.A. Reliance Bank Rockwood Bank Royal Banks Saint John’s Bank & Trust Company St. Louis Bank Southern Commercial Bank The Bank of New York* The Business Bank of St. Louis The Private Bank UMB Trust US Bank *Paying Agent Institutions Only EXHIBIT C DEPOSITARY CONTRACT FOR DEPOSITS OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT THIS CONTRACT, made the _____ day of_________________, 20___, between the Secretary-Treasurer of The Metropolitan St. Louis Sewer District (hereinafter the "District") and ___________ ______________ (hereinafter the "Depositary"); WITNESSETH: Pursuant to the provisions of Section 7.080 of the District's Plan and Ordinance No.__________ of the District, Depositary has been selected as a depositary of moneys of the District; and it is hereby agreed as follows: 1. Demand Accounts. The Secretary-Treasurer of the District will from time to time deposit moneys with Depositary on demand deposit. The District agrees to establish and maintain with Depositary the following demand deposit accounts:___________ _______________________________________________. Depositary agrees to safely keep the demand deposits made hereunder, to promptly collect all checks, drafts and other instruments of exchange deposited with it under this contract, and to pay out such sums as the District may draw by check or other transfer as hereinafter provided. 2. Certification of Deposit. The Secretary-Treasurer of the District will from time to time purchase certificates of deposit from the Depositary. The rates of interest, basis of calculation of interest, time of payment of interest and maturity of each such certificate of deposit shall be as agreed to by the District and the Depositary at the time of purchase. 3. Collateral for Deposits. The Secretary-Treasurer shall from time to time provide the Depositary a list of approved securities ("Securities"), which may be provided as collateral for District deposits. The current list of Securities is attached hereto as Addendum A. To secure the safekeeping of the moneys deposited under this contract, Depositary will deliver Securities, in an amount at least equal in market value to the amount of deposits of District and its sub districts in the Depositary hereunder, as directed by the Secretary-Treasurer. Such Securities shall be delivered to the Secretary-Treasurer or to a disinterested banking institution or safe depositary, as escrow agent or trustee (the "Custodian") as directed by the Secretary-Treasurer in writing. The current written direction of the Secretary-Treasurer as to the Custodian for such Securities is attached hereto as Addendum B. Depositary does hereby grant, bargain, convey and pledge a security interest in any and all Securities deposited with the Secretary-Treasurer of the District or the Custodian in accordance with the terms of this contract. Upon an increase in the deposits of the District in the Depositary, the Depositary will make additional deposits of Securities with the Secretary-Treasurer or Custodian, equal in market value to the amount by which such deposits have increased. Upon a decrease in the deposits of the District in the Depositary, the Secretary-Treasurer of the District shall consent to a withdrawal of deposits of Securities in such amounts as will insure that all deposits are fully collateralized in the amount required hereunder. 4. Accounting and Safekeeping of Securities. The Secretary-Treasurer of the District may from time to time inspect or request an accounting of the securities to determine that they are kept and maintained as required in paragraph 3. Any expenses charged by the Custodian for the deposit, safekeeping and inspection of said securities shall be paid by Depositary. If in any case, or at any time, the Secretary-Treasurer of the District determines that the Securities given by Depositary do not satisfactorily secure the deposits made or to be made hereunder, the District may require additional or substitute security to be given and Depositary shall furnish additional or substitute security as is satisfactory to the Secretary-Treasurer of the District. 5. Substitution of Securities. The Depositary may, at any time with the consent of the Secretary-Treasurer, withdraw any of the Securities deposited to secure the safekeeping of the moneys deposited hereunder upon depositing in lieu thereof other Securities of like kind and character and at least equal in market value to the Securities withdrawn. Securities so deposited will be pledged to secure payment by the Depositary of District funds as directed by the District pursuant to the provisions hereof, and such Securities shall be released and delivered to the District on its sole demand made to the Custodian, in the event that the Depositary should fail to pay such secured funds, or any part thereof, as directed by the District pursuant to the provisions hereof, and that securities so released and delivered to the District shall be converted into money and the District shall use the same in lieu of such secured funds. 6. Statement of Accounts. Depositary shall, at times specified in writing by the Secretary-Treasurer of the District, render a statement showing the daily balance, or amount of money, held by it under this contract and shall include with such statement all cancelled checks drawn on any accounts of the District covered by such statement. 7. Conversion of Securities. In the event that Depositary defaults in any manner in performing any of the terms and conditions of this contract between the parties or fails to keep safely the moneys deposited with it, or to pay any demand ordered by the Secretary- Treasurer of the District, the Secretary-Treasurer of the District shall be authorized forthwith without notice, advertisement or demand and at public or private sale to convert into money the Securities deposited by Depositary or as many of them as may be necessary to pay the whole amount of the moneys deposited; and District may purchase at the then market value any or all of the Securities sold at any such sale. 8. Charges for Services. The District will be responsible for all charges for services provided by Depositary, as mutually agreed in the attached Pricing Schedule, Addendum C. The Depositary agrees to give the District 60 days advance written notice prior to the effective date of any changes in Pricing Schedule, Addendum C. The Depositary will bill the District monthly for charges for services and will not automatically debit any account of the District maintained with the Depositary for such charges. The Depositary retains its right to set off against any such account for charges which remain unpaid 30 days from date of billing, provided that if the District disputes any charge within such 30 day period the Depositary's right to set off with respect to such disputed charge may only be exercised for such charges which remain unpaid 30 days following notice by the District to the Depositary that such charge is in dispute. 9. Transfer of Funds. The Depositary is authorized to honor, execute and charge to the District's account at the Depositary all telephonic, telegraphic, oral or written requests received from an Authorized Representative of the District for transfers of funds from District accounts to other accounts of the District maintained with Depositary, provided that a transfer of funds from District Accounts in favor of third parties, other than a transfer by check, shall be made by the Depositary at the request of any two Authorized Representatives of the District. The names, offices, manual signatures and facsimile signatures of individuals presently serving as Authorized Representatives of the District are set forth on Addendum D. The Executive Director and Secretary-Treasurer of the District shall notify the Depositary in writing of any changes in such Authorized Representatives of the District. 10. Checks of the District. The Depositary is authorized to honor, execute and charge to the District's accounts at the Depositary all checks drawn on any such accounts, signed either manually or by means of a check signing machine, by any Authorized Representative of the District as set forth in Addendum D; provided that checks of $50,000 or more may not be signed by means of a check signing machine or other facsimile but only by manual signature and checks of $50,000 or more must be signed by the manual signatures of two Authorized Representatives of the District. Check 21 Act. The District follows the law related to the Check 21 Act. The Check 21 was enacted on October 28, 2004. The law allows the recipient of the original paper check to create a digital version of the original check, into an electronic format thereby eliminating the need for further handling of the physical document. Section 11. Electronic Payments. The District issues payments using the EFT Electronic Funds Transfer process and adheres to the same approvals and guide lines as the issuance of checks. This is the District’s preferred method of payment. 11. Assignment. Depositary shall not transfer by assignment, subcontract or otherwise any interest in this contract without the prior written consent of the Secretary- Treasurer of the District. 12. Access. Depositary shall permit reasonable access by the Secretary- Treasurer of the District for purposes of performing audit procedures relating to any aspect of services provided by Depositary to District in connection with this contract. 13. Records. Depositary shall maintain complete records relating to deposits made hereunder in accordance with state and federal laws, rules and regulations. No listing, report or other material generated from date covered by this contract may be disclosed or transferred by Depositary to any other person, except as required by state and federal laws, rules and regulations, and then only after notice to the Secretary-Treasurer of the District. 14. Term. This contract shall continue in force and effect until ________________, provided that such contract shall automatically renew on each June 30 for an additional one-year period unless Depositary is notified by the Secretary-Treasurer of the District that this contract will terminate on such June 30; provided, however, that each party reserves the right to terminate this contract at any time on giving sixty (60) days written notice to the other party of its intention to do so, and this contract shall continue in effect until so terminated. 15. Depositary Resolution. There is attached hereto a certified copy of the resolution adopted by the Board of Directors of Depositary authorizing the execution and delivery of this contract by the officers of Depositary, whose names are affixed on behalf of Depositary. 16. Modification. This Agreement and Addendum may be modified or amended only in writing and agreed to by both parties. 17. Applicable Law. This Agreement and all sections thereof shall be governed by the laws of the State of Missouri. 18. Additional Services. The Depositary and the District mutually agree that the Depositary shall perform certain additional banking services as described in Addendum E under the terms and conditions as described in Addendum E, which is incorporated herein by reference; provided that in the event of conflicts between this contract and Addendum E, as to the services described in Addendum E the provisions of such Addendum shall control.] IN TESTIMONY WHEREOF, the parties have executed this contract in duplicate and hereunto subscribed their names and affixed their seals as of the date first above written. THE METROPOLITAN ST. LOUIS SEWER DISTRICT By ______________________________ Executive Director of The Metropolitan St. Louis Sewer District ATTEST: _____________________________ Secretary-Treasurer ATTEST: _____________________________ Secretary or Assistant Secretary Approved as to form: _____________________________ General Counsel EXHIBIT D LIST OF APPROVED SECURITIES DEALERS Primary Government Securities Dealers* Bank of Nova Scotia, New York Agency BMO Capital Markets Corp. BNP Paribas Securities Corp. Barclays Capital Inc. Cantor Fitzgerald & Co. Citigroup Global Markets Inc. Credit Suisse Securities (USA) LLC Daiwa Capital Markets America Inc. Deutsche Bank Securities Inc. Goldman, Sachs & Co. HSBC Securities (USA) Inc. Jefferies LLC J.P. Morgan Securities LLC Merrill Lynch, Pierce, Fenner & Smith Incorporated Mizuho Securities USA Inc. Morgan Stanley & Co. LLC Nomura Securities International, Inc. RBC Capital Markets, LLC RBS Securities Inc. SG Americas Securities, LLC TD Securities (USA) LLC UBS Securities LLC. * Such Primary Government Securities Dealers shall be those certified as such, from time to time, by the New York Federal Reserve Bank. Current list dated February 11, 2014 District Approved Securities Dealers Blaylock Robert Van, LLC Comerica Securities, Inc. Edward D. Jones First Bankers Bane Securities, Inc. FTN Financial Capital Markets Great Pacific Securities Piper Jaffray & Co Raymond James/Morgan Keegan Siebert Branford Shanks & Co., LLC Stifel Nicolaus & Co., Inc. Sterling Investments Stem Brothers & Co. Wells Fargo Institutional Brokerage Multi-Bank Securities, Inc. District Authorized Depositary Banks EXHIBIT E LIST OF APPROVED COLLATERAL The securities described below are hereby designated as acceptable collateral for state funds on deposit, as required by Section 30.270 RSMo (as amended). The State Treasurer reserves the right to refuse to accept as collateral any security or securities on this list, or to request the submission of an alternate acceptable security or securities, if, in the sole discretion of the State Treasurer, the State Treasurer determines that such action will provide greater security for the deposit of state funds. The securities described below are designated as acceptable collateral for the deposit of state funds. The listing is not intended to serve as, and should not be considered as a listing of legally authorized investment instruments. 1. Marketable Treasury securities of the United States. 2. Bonds or certificates of participation (COP’s) issued by the State of Missouri with an investment grade long-term rating from one of the Nationally Recognized Statistical Ratings Organizations (NRSRO’s) or are secured by a federal agency guarantee (directly or through guaranteed loans), to include the following: a. General obligation debt securities issued by the State of Missouri. b. Revenue bonds issued by the Missouri Board of Public Buildings or Department of Natural Resources. c. Revenue bonds of the Missouri Housing Development Commission, Missouri Health and Education Facilities Authority, Missouri Higher Education Loan Authority, Missouri Environmental Improvement and Energy Resources Authority, Missouri Agricultural and Small Business Development Authority, Missouri Industrial Development Board, or State-owned educational institutions. d. Certificates of Participation issued by the Missouri Board of Public Buildings or Public Fund Commissioners. 3. Bonds or certificates of participation with an investment grade long-term rating from one of the NRSRO’s issued by of any of the following agencies: a. Any city in this state having a population of not less than two thousand b. Any county of this state c. Any school district situated in this state d. Any special road district in this state e. Bonds of any political subdivision established under the provision of Article VI, Section 30 of the Constitution of Missouri (City and County of St. Louis) f. Any of the fifty states within the United States of America 4. Debt securities guaranteed by the United States or its agencies or instrumentalities, as follows: a. Debt securities of the Federal Farm Credit System b. Debt securities of the Federal Home Loan Banks c. Debt securities of the Federal National Mortgage Association (“Fannie Mae”) d. Debt securities of the Student Loan Marketing Association e. Debt securities of the Tennessee Valley Authority (TVA) f. Debt securities of the Federal Agricultural Mortgage Corporation (“Farmer Mac”) g. Debt securities of the Government National Mortgage Association (“Ginnie Mae”). h. Debt securities of the Federal Home Loan Mortgage Corporation (“Freddie Mac”) i. Guaranteed Loan Pool Certificates of the Small Business Administration (SBA) j. Federal Home Administration insured notes (CBOs). k. Public housing notes and bonds (“project notes and bonds”) issued by public housing agencies, guaranteed as to the payment of principal and interest by the government of the United States of any agency or instrumentality thereof. l. Debt securities of the Resolution Funding Corporation (REFCORP). Collateralization margins for pass-through mortgage-backed securities, SBA pool certificates and collateralized mortgage obligations shall differ from debentures issued by such agencies. The only type of Collateralized Mortgage Obligations (CMO) that the Treasurer’s Office will accept is Planned Amortization Classes (PAC’s), Targeted Amortization Classes (TAC’s) and sequential pay classes. Furthermore, Collateralized Mortgage Obligations must have a weighted average life not to exceed five years and pass the FFIEC High Risk Stress Test. No Strips, Z bonds, Mortgage Derivatives or Zeros are acceptable. 5. Tax anticipation notes issued by any county of class one in Missouri with an investment grade short-term rating from one of the Nationally Recognized Statistical Ratings Organizations (NRSRO’s) 6. Surety bonds issued by an insurance company licensed under the laws of the State of Missouri whose claims-paying ability is rated in the highest category by Duff & Phelps, A.M. Best, Standard & Poor’s, or Moody’s. The face amount of such surety bond shall be at least equal to the portion of the deposit to be secured by the surety bond. 7. Irrevocable standby Letter of Credit issued by a Federal Home Loan Band possessing the highest rating issued by at least one NRSRO. 8. Bonds or certificates of participation issued by local government agencies within the fifty states provided such instruments are rated in the highest category by at least one NRSRO. The State Treasurer shall determine the collateralization margin (or “haircut”) for each security type listed above, which may change from time to time subject to market conditions and other factors, but in no event shall be greater than the maximum limits allowed by law. The current collateralization requirements by security type are provided on Attachment “A”. The total market value of collateral must be equal to or greater than the collateralization margin set by the State Treasurer of the total amount of state time deposits (including accrued interest to maturity) plus demand deposits with the depository, less the amount, if any, which is insured by the Federal Deposit Insurance Corporation, or the National Credit Unions Share Insurance Fund. All securities pledged as collateral by the depository will be held by the Missouri State Treasurer, in a segregated account. All collateral pledged must be delivered in bearer for, book-entry form, or in the case of fully registered certificates, placed into the nominee name of the custodian. COLLATERALIZATION REQUIREMENTS FOR DISTRICT DEPOSITS No. Security Collateralization Margin (“Haircut”) 1. United States Treasuries 102% 2. State of Missouri Bonds/Debt 102% 3. Local/State Debt a. Any city in this state having a population of not less than two thousand 102% b. Any county of this state 102% c. Any school district situated in this state 102% d. Any special road district in this state 102% e. Bonds and COP’s of any political subdivision established under the provision of Article VI, Section 30 of the Constitution of Missouri (City and County of St. Louis) 102% f. Any of the fifty state within the United States of America 102% 4. U.S. Agency Securities Agency Debentures 102% SBA Loan Pools 105% Agency Mortgage-Backed Securities 105% Agency CMO’s (PACs, TACs, and SEq. Bonds only) 105% 5. Tax anticipation notes issued by any county of class one in Missouri 102% 6. Surety bonds 100% 7. FHLB Letter of Credit 100% 8. Out-of-state Municipal Bonds/COP’s 102% The foregoing ordinance was approved on December 10, 2015