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City of Ramsey <br />Investment Policy <br /> <br />2. .Reputation and Experience <br /> <br />The qualifying bank or dealer must have demonstrated over a significant <br />period of time, a successful, profitable, and reliable operation. <br /> <br />3. Management and Professionalism <br /> <br />The qualifying bank or dealer must have an established managerial <br />component and knowledgeable professional staff capable of ensuring the <br />continued success of the enterprises. <br /> <br />C. Local Investments <br /> <br />In order to provide an opportunity for small local banks and Savings and Loans to <br />compete in the bidding, efforts will be made to offer smaller dollar amounts for <br />bid. <br /> <br />The City of Ramsey will purchase short-term and medium-term certificates of <br />deposit from vendors based on the following criteria: <br /> <br />a. The rate should match or exceed other investment options. <br /> <br />The collateral shall be government securities in excess of FDIC/FSLIC <br />maximum insurance [$100,000 under current law]. <br /> <br />D. Certificates of Deposit from QuaIifying Banks <br /> <br />The City of Ramsey will follow lVfinnesota Statutes 118.01 and 118.005. [Exhibit <br />21. <br /> <br />E. Bankers Acceptances and Commercial Paper <br /> <br />Although authorized by Minnesota Law, bankers acceptances and commercial <br />paper are more risky than instruments of the Federal Government or Federal <br />Agencies. Because of the credit risk, the City of Ramsey will follow these <br />guidelines: <br /> <br />I. Bankers Acceptances <br /> <br />Bankers Acceptances shall be restricted to the top 40 banks in the <br />United States [as measured by deposits], Investments in Bankers <br />Acceptances shall not be made if news leads offer concerns over the <br />financial condition of these banks. <br /> <br />The broker, dealer, or banker shall verify that the Bankers <br />Acceptance is eligible for purchase by the Federal Reserve system. <br /> <br /> <br />