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.
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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