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Collateralized Public Deposits (Certificated of Deposits). Instruments <br />issued by financial institutions which state that specified sums have been <br />deposited for specified periods are required to be backed by acceptable <br />collateral securities as dictated by State statute. <br /> <br />Banker's Acceptances. Time drafts drawn on and accepted by a <br />commercial bank, otherwise known as bankers' acceptances. The City of <br />University City/General Fund may invest in bankers' acceptances issued <br />by domestic con'unercial banks possessing the highest rating issued by <br />Moody's Investor Services, Inc. or standard and Poor's Corporation. <br /> <br />Commercial Paper. The City of University City/General Fund may invest <br />in conm~ercial paper issued by domestic corporations, which has received <br />the highesfrating issued by Moody's Investor Services, Inc. or Standard <br />and Poor's Corporation. Eligible paper is further limited to issuing <br />corporations that have total assets in excess of five hundred million dollars <br />($500,000,000). <br /> <br />Security Selection <br />The following list represents the entire range of United States Agency Securities <br />that the City of University City/General Fund will consider and which shall be <br />authorized for the investment of funds by the City of University City/General <br />Fund. Additionally, the following definitions and guidelines should be used in <br />purchasing the instruments: <br /> <br />ao <br /> <br />U.S. Govt. Agency Coupon and Zero Coupon Securities. Bullet coupon <br />bonds with no embedded options. <br /> <br />b~ <br /> <br />U.S. Govt. Agency Discount Notes. Purchased at a discount with <br />maximum maturities of one (1) year. <br /> <br />U.S. Govt. Agency ..Callable Securities. Restricted to securities callable <br />with final maturities of five (5) years. <br /> <br />U.S. Govt. Agency Step-Up Securities. The coupon rate is fixed for an <br />initial tenn. At coupon date, the coupon rate rises to a new higher fixed <br />term. Restricted to securities with final maturities of five (5) years. <br /> <br />Investment Restrictions and Prohibited Transactions <br />To provide for the safety m'~d liquidity of the City of University City/General <br />Fund's funds, the investment portfolio will be subject to the following <br />restrictions: <br /> <br />a. Borrowing for investment purposes ("Leverage") is prohibited. <br /> <br /> <br />