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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1991 Note 2. CASH AND INVESTMENTS (Continued) A Depn4ts (continued) Authorized collateral includes the legal investments described below, as well as certain first mortgage notes and certain other State or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. Deposit balances at December 31, 1991, are as follows: Bank Deposits (checking and savings accounts) B. Tnvestmprts Bank Carrying Balance Amount 604,074 $ 356,468 At December 31, 1991, all deposits were insured or collateralized by securities held by the City's agent in the City's name. The City may also invest idle funds as authorized by Minnesota Statutes, as follows: * Direct obligations or obligations guaranteed by the United States or its agencies. * Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described above. * General obligations of the State of Minnesota or any of its municipalities. * Bankers' acceptances of United States' banks eligible for purchase by the Federal Reserve System. * Commercial paper issued by United States' corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. * Repurchase or reverse purchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. * Futures contracts sold under authority of Minnesota Statutes Section 471.56, Subdivision 5. -19-