Policy No..: MDTA 7010 Effective: August 16, 2005
and Exchanges Commission Rule 15C3-1 (uniform net capital rule). 2. Net capital of no less than $25 million. 3. Registered as a dealer under the Securities Exchange Act of 1934. 4. Member of the Financial Industry Regulatory Authority (FINRA). 5. Registered to sell securities in Maryland. 6. Engaged in the business of effecting transactions in U.S. government and agency obligations for at least five (5) consecutive years.
b. Policy Statement 13. Qualified Institutions shall be provided with the MDTA’s Investment Policy. The MDTA shall maintain on file current audited financial statements for each Qualified Institution with which the MDTA transacts business. XII. Competitive Selection of Investment Instruments a. Policy Statement 14. Whenever practical, securities shall be purchased and sold through a formal competitive process requiring the solicitation and evaluation of a least three (3) bids/offers from Qualified Institutions. i. Supporting records of the competitive process must be retained including the name of the financial institutions solicited, rate quoted, description of the security, investment selected, and any special considerations that had an impact on the decision. ii. If the highest yielding security was not selected for purchase or if three bids/offers from Qualified Institutions are not obtained, an explanation describing the rationale will be included in this record. XIII. Investment of Bond Proceeds a. Policy Statement 15. The MDTA shall comply with all applicable sections of the Internal Revenue Code of 1986, Arbitrage Rebate Regulations (as amended) and bond trust covenants with regard to the investment of bond proceeds. The MDTA will consult with bond counsel to ensure that non-compliance is remediated in accordance with income tax regulations. Accounting records shall be maintained in a form and for a period of time sufficient to document compliance with these regulations and covenants. XIV. Reporting a. Policy Statement 16. MDTA staff shall provide the CFO with a monthly statement of transactions and holdings priced at market. At least quarterly, a report must be prepared detailing compliance with policy constraints. The report may include, but is not limited to the following: i. Portfolio performance versus benchmarks, analyzed on a total return basis for those funds invested pursuant to a strategy that may result in the sale of securities that are not intended to be held until maturity. ii. Percentage of total portfolio by investment class and comparison to diversification limits in Policy Statement 8. iii. Holding by institution/issuer/pool and comparison to diversification limits in Policy Statement 8. iv. An investment plan for the next quarter-describing the target maturity
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