Policy No..: MDTA 7010 Effective: August 16, 2005
a. No person may engage in an investment transaction except as provided under the terms of this policy and procedures established by the CFO. 2. To the extent not covered by this policy, procedures shall include reference to: a. Safekeeping
b. Repurchase Agreements c. Wire Transfer Agreements d. Collateral Depository Agreements e. Banking Service Agreements f. Competitive Bidding Procedures g. Cash Flow Requirements
IV. Finance Committee a. Policy Statement 4. The MDTA’s Finance Committee will serve in an advisory capacity to the CFO in its periodic review of the MDTA’s Investment Policy, investment strategy, practices and portfolio performance. The Finance Committee is responsible for: i. Reviewing and updating the Investment Policy at least annually. ii. Monitoring the investment transactions to assure that adequate controls are in place. iii. Assuring that the MDTA is in compliance with the Investment Policy. iv. Meeting periodically to deliberate economic outlook, portfolio diversification and maturity structure, cash flow forecasts, potential risks and the interest rate outlook. V. Allowable Investments a. Policy Statement 5. Permitted investments include the following instruments: i. U.S. Treasury Obligations - Securities issued or backed by the full faith and credit of the United States Treasury. ii. Federal Agency Obligation - Securities issued by or backed by the full faith and credit of any United States Government agency or government sponsored enterprise with credit ratings in the highest category assigned to that obligor, but in no event less than the double-A category. Includes, but is not limited to:
1. Fannie Mae 2. Freddie Mac
3. Federal Home Loan Bank 4. Federal Farm Credit Bank 5. Federal Intermediate Credit Banks 6. Federal Land Banks 7. Federal Bank of Cooperatives 8. Export-Import Bank of the United States 9. Federal Financing Bank
10. Federal Housing Administration 11. Farmers Home Administration
iii. Repurchase Agreements - The MDTA may purchase U.S. Treasury Obligations or Federal Agency Obligations under a repurchase agreement provided that the following conditions are met:
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