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A. If city moneys are invested in certificates of deposit or other deposits, the entire amount of principal and interest which will be payable to the city upon maturity of the investment must be collateralized by any combination of the following securities, at the following margin requirements and maturities:

Collateral Type

Margin Requirement

1. U.S. Treasury Securities with a maturity date five years or less from the date of the city’s investment transaction

102%

2. Actively traded U.S. Government Agency or Instrumentality Securities, except mortgage pass-through securities with a:

a. Maturity date one year or less from the date of the city’s investment transaction

103%

b. Maturity date between one and five years from the date of the city’s investment transaction

107%

3. Obligations of the state of Alaska and its political subdivisions secured by the full faith, credit and taxing power thereof:

a. Maturity date one year or less from the date of the city’s investment transaction

102%

b. Maturity date between one and five years from the date of city’s investment transaction

107%

4. FDIC and FSLIC Insurance

100%

B. A financial institution shall not release, assign, sell, mortgage, lease, transfer, pledge or grant a security interest in, encumber, substitute or otherwise dispose of or abandon all or any part of pledged collateral without prior written authorization of the city. (Ord. 12-08 § 2, 2012)