07 - Laserfiche WebLink

"Permitted Investments" means any of the following to the extent permitted by the laws of the State (the Trustee is entitled to rely on any Written Request of the Authority directing investments as a certification to the Trustee that such investments are so permitted). (1) Federal Securities and any investment fund, including money market funds or other investment policy arrangement which purchases and holds exclusively Federal Securities, (2) Obligations issued by federal land banks or federal home loan banks, or obligations, participations, or other instruments issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association, or obligations, participations, or other instruments issued by a federal agency or a United States government-sponsored enterprise, (3) Investments in repurchase agreements under the terms of which the underlying collateral is transferred to the possession of the Trustee of any securities authorized by paragraphs (1) and (2) above which have a fair market value (valued at cost) at least equal to 103% of the amount invested in the repurchase agreement and are free of third party claims, (4) Nonnegotiable certificates of deposit issued by a nationally chartered bank, a bank chartered by the State of California or a foreign banking corporation, authorized pursuant to Section 1756 of the California Financial Code to transact business in the State of California by accepting deposits, or a State of California or federal savings and loan association, provided that such certificates of deposit are fully collateralized in the manner required for collateralization of trust funds, and (5) Any investment agreement, guarantee or other investment vehicle or security issued by, secured by or otherwise representing the general obligations of a financial institution whose long-term unsecured, uninsured and unguaranteed obligation or claims-paying ability is rated AA or better by any Rating Agency at the time of its issuance, provided that (a) the agreement is not subordinated to any other obligations of such financial institution, and(b) if the financial institution fails to maintain a rating of AA or better(without regard to gradations), the City shall have the right to demand collateral in the form of securities authorized by paragraphs (1) and (2) above pledged to secure the investment agreement Such collateral shall be pledged through the Trustee and shall have a fair market value (valued at cost) of at least 103% of the value of funds remaining in the investment agreement Further, the City shall have the nght to withdraw all funds without penalty should the financial institution fail to provide collateral as required under this paragraph, (6) Investments otherwise defined in Section 53601 of the California Government Code, as amended from time to time, provided that the Trustee is obligated to invest in any form of investment pursuant to this subparagraph (6) except upon receipt of a certificate of an Authorized Officer of the City that any directed investment to be made pursuant to this subparagraph (6) meets this definition as set forth in this subparagraph (6) "Principal Trust Office" means the corporate trust office of the Trustee located in Pleasanton, California or such other office or offices as the Trustee shall designate from time to time -5- 2762680 2