City of Plymouth Proposed 2022-2023 Budget - Flipbook - Page 269
4.9
2.
Certificates of deposits, savings accounts, deposit accounts or depository receipts
of a bank or savings and loan association which is a member of the Federal
Deposit Insurance Corporation or a credit union which is insured by the National
Credit Union Administration; but only if the financial institution complies with
subsection 129.91 (2), (5), or (6) of Public Act 20, as amended.
3.
Commercial paper rated at the time of purchase within the top two (2) highest
classifications established by not less than two (2) standard rating services, and
which matures not more than 270 days after the date of purchase. Not more than
50% of City funds may be invested in commercial paper at any time.
4.
United State government or federal agency obligation repurchase agreements.
Repurchase agreements shall be negotiated only with dealers or financial
institutions with whom the City has negotiated a Master Repurchase Agreement
or with the City's primary financial institutions. Repurchase agreements must be
signed with the bank or dealer and must contain certain provisions similar to those
outlined in the Public Security Association's model Master Repurchase
Agreement.
5.
Banker's acceptances of United States banks.
6.
Mutual Funds composed of investment vehicles which are legal in the State of
Michigan for direct investment by local units of government. For further
clarification, this authorization is limited to securities whose intention is to
maintain a net asset value of $1.00 per share.
7.
Obligations of the State of Michigan or any of its political subdivisions that at the time
of purchase are rated as investment grade by not less than one standard rating service.
8.
Investments described in 4.8.a through 4.8.g above, if purchased through an interlocal agreement under the urban Cooperative Act of 1967, (EX SESS) PA 7, MCL
124.501 to 124.512.
9.
Investment Pools organized under the surplus funds investment pool act 1982 PA
367, MCL 129.111 to 129.118 and the local government investment pool act 1985
PA 121, MCL 129.141 to 129.150. A due diligence standard must apply prior to
investing in all bank sponsored or money market investment pools.
Money Market Mutual Funds. Investments in money market mutual funds registered under
the Investment Company Act of 1940 composed of investment vehicles that are legal for
direct investment by local governments in Michigan and which are "no-load" (i.e., no
commission or fee shall be charged on purchases or sales of shares); have a constant net
asset value per share of $1.00; and have a maximum stated maturity and weighted average
maturity in accordance with Rule 2a-7 of the Investment Company Act of 1940.
INVPOL22
2
Page 4 of 7
