Resolution No. 502-01 Investment Policy

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or from securities dealers that are members of the National Association of Securities Dealers (NASD) and the Securities Investors Protection Corporation (SIPC) with a physical presence in Florida and having minimum net capital as required by Rule 15c3-1 of the Securities and Exchange Commission (SEC) of $10 million ($10,000,000) or primary securities dealers as designated by the Federal Reserve Bank of New York. Repurchase agreements shall only be entered into with primary securities dealers and financial institutions that are state -qualified public depositories. M. THIRD PARTY CUSTODIAL AGREEMENTS The Finance Director, with prior City Manager approval, may execute a Third - Party Custodial Safekeeping Agreement with a commercial bank having trust powers or a trust company chartered by the United States Government or the State of Florida. All securities purchased and/or collateral obtained by the City shall be properly designated as an asset of the City and held in safekeeping by the trust department or trust company and no withdrawal of such securities, in whole or in part, shall be made from safekeeping except by an authorized City staff member. The Third -Party Custodial Safekeeping Agreement shall include letters of authority from the City, details of each party's responsibilities, notification of security purchases, sales, delivery, repurchase agreements, wire transfers, safe- keeping and transaction costs, procedures in care of wire failure, or other unforeseen mishaps including liability of each party. XII. MASTER REPURCHASE AGREEMENT The Finance Director will require all approved institutions and dealers transacting repurchase agreements to execute and perform as stated in the Master Repurchase Agreement. All repurchase agreement transactions will adhere to requirements of the Master Repurchase Agreement. XIII. INTERNAL CONTROLS The Finance Director shall establish and monitor a set of internal controls designed to protect the City's funds and ensure proper accounting and reporting of the securities transactions. Such internal controls shall include, but not be limited to the following: A. All securities purchased or sold will be transferred only under the "deliver versus payment" (D.V.P.) method to insure that funds or securities are not released until all criteria relation to the specific transaction are met. B. The Finance Director is authorized to accept on behalf of and in the name of the City of Zephyrhills bank trust receipts or confirmation as evidence of actual delivery of the obligations or securities in return for investment of funds. C. Trust receipts or confirmations shall fully describe the various obligations or securities held. The receipt or confirmation shall state that the investment is held in the name of the City of Zephyrhills. D. The actual obligations or securities, whether in book -entry or physical form, on which trust receipts or confirmations are issued may be held by a third - party custodial bank and/or institution or by designated correspondent bank with a correspondent relationship to the City's third -party custodian. E. Other internal controls such as: 1. Written documentation of telephone conversations. 2. Adequate separation of duties. 3. Custodial safekeeping 4. Supervisory control of employee actions and operations review.