Happy Y2K to all. I am updating our Investment Policy and have been
spinning my wheels on the amount which we need to be collateralized for
negotiable Certificates of Deposits. Our current policy says 102%. My
reading of Government Code section 53652 (a) says 110%. I have read a
number of different cities' policies (some of which I got off the CSMFO
site), and the issue is still not clear to me; some cities use 102%,
some use 110%, some just say "in accordance with code section 53652".
My questions are: 1)What is the correct interpretation - 102% or 110%?
2) Where did the 102% come from? I don't see it anywhere in 56301 et
al, and 3) does the collateralization apply to more than just negotiable
CD's, like for example checking accounts, money market or passbook
accounts with banks, non-negotiable CD's, etc?
Your assistance is appreciated. Please respond by Monday, 1/10, since
my Finance Commission meeting is that evening.
Mary Jo Walker
City of Saratoga
[EMAIL PROTECTED]
Phone (408) 868-1212
Fax (408) 868-1280
