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C - 33 City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/25 <br />APPENDIX C <br />COLLATERALIZATION <br />Collateralization will be required on active and inactive deposits in accordance with Government Code <br />Section 53651, 53651.2, and 53652, which set forth the eligible securities and the required value of the <br />securities to collateralize these deposits. Whenever possible, the City shall request that U.S. Treasury and <br />Government securities be used as collateral. Repurchase agreements will be collateralized 102% with <br />securities of the U.S. Government or its Agencies, marked to market daily <br />SAFEKEEPING AND CUSTODY <br />All security transactions entered into by the City shall be conducted on a delivery-versus-payment (DVP) <br />basis. Securities purchased from brokers/dealers will be held by a third party custodian designated by the <br />Director of Finance and evidenced by safekeeping receipts. Securities do not literally have to be held in the <br />name of the City but ownership is evidenced through safekeeping or custodial receipts and/or statements. <br />TRUST AGREEMENTS <br />The City shall direct the investment activities of trustees. Such direction shall be in keeping with the terms <br />and conditions of its bond agreements, applicable law and policies set forth in this document. <br />DIVERSIFICATION <br />The City will diversify its instruments by security type and institution, meeting at least the minimum <br />requirements as outlined in Government Code Section 53601. With the exception of U.S. Treasury securities, <br />Federal Agency securities, Medium-term notes and authorized pools, no more than 30% of the total portfolio, <br />and less where stated, will be invested in a single security type with no more than 5 percent invested with a <br />single issuer.