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1982-15 Amending the Investment Policy of KIBKODIAK ISLAND BOROUGH ORDINANCE NO. 82- 15 -O(A) AN ORDINANCE OF THE KODIAK ISLAND BOROUGH, KODIAK, ALASKA, AMENDING THE INVESTMENT POLICY OF KODIAK ISLAND BOROUGH. WHEREAS, it is the desire of the Kodiak Island Borough Assembly to modify the existing ordinance on Permissible Investments, and WHEREAS, it is the further desire of the Kodiak Island Borough Assembly that all investments of Borough funds be collateralized. NOW, THEREFORE, BE IT ORDAINED that Title 3 of the Kodiak Island Borough Code be revised as follows: j Sections: 2 PUBLIC FINANCE. -- MANAGEMENT AND ACCOUNTING* 3.04.020 Permissible Investments 3.04.021 Terms Defined 3.04.022 Collateral Requirements 3.04.023 Collateral Safekeeping 3.04.020 Permissible Investments. The treasurer shall invest money only in the following types of investments security instruments. A. Bonds, notes or other obligations, direct or otherwise, of the United States; B. Bonds and other evidence of indebtedness of the State of Alaska, or any municipality, or political subdivision of the State of Alaska; C. Savings accounts, er certificates of deposit, bankers acceptancesA repurchase agreements and such other legal security instruments. to -any £inaneisk- institution- euthe to - business -in- the - St 3.04.021 Terms Defined. In so far as specific wording is used in this code, the following definitions shall apply; A. Banker's Acceptance. An instrument utilized in the financing of foreign trade, making possible the payment of cash to an exporter covering all or a part of the amount of a shipment made by him. B. Bond. A bond is a certificate of indebtedness, in writing, and often under seal. C. Bill of Exchange. An unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pav on demand or at a fixed or determinable future time a sum certain in money to order or to bearer (Uniform Negotiable Instruments Law); synonymous with a draft or acceptance when referring to a domestic transaction. D. Collateralize. To secure a debt in part or in full by a pledge. A note is said to be collateralized if the debtor has deposited property with his creditor as part of full security for the payment of principal or interest. E. Repurchase Agreement. A repurchase agreement, commonly referred to as a "repo ", is a short -term sale of securities by a dealer in government securities whereby the dealer agrees to repurchase the securities from the investor at a fixed or open maturity date. The underlying instrument is a U.S. government security; therefore, there is little risk of default. The holding period is tailored to the needs of the investor and can be established for very short periods, even a few days. Interest rates on repurchase agreements are tied to the rate on treasury bills, federal funds, and loans to government security dealers by commercial banks. nn z1 :� 3.04.022 Collateral Requirements. All investments of public funds will be collateralized and /or insured. Collateral will be required to the extent that the investment amount exceeds the limits of FDIC or other applicable insurance. The following collateral shall apply: ATTEST: STATE AND MUNICIPAL BONDS AND NOTES 1. Alaskan issues 2. Federally Guaranteed Project Notes Alaska issues 3. Other states (Baa rating or better) U.S. GOVERNMENT OBLIGATIONS 1. Direct obligations 2. Federal Agency issues 3. Federally Guaranteed Project Notes -Other 3.04.023 Collateral Safekeeping. All items of deposited for safekeeping with a third party. This party bank. PASSED AND APPROVED this 6th day of May Kodiak Island Borough Assembly. By Borough Cler First Reading, Approval Date: March 4, 1982 Second Reading, Public Hearing: April 1, 1982 Passage Date: May 6. 1982 Effective Date: May 6. 1982 Recommended By: Borough Assembly Ordinance No. 82 -15-0 (A) Page 2 KODIAK ISLAND BOROUGH By Borough Mayor Required for 100% of Deposit 100% of market 100% of market 120% of market 100% of market 100% of market 100% of market collateral will be will be another , 1982, by the