When used in this chapter, the following words and phrases shall have the meanings set forth in this section:
“Actively traded” means a security which is frequently bought or sold on a liquid market.
“Financial institution” means a bank, savings and loan association, or securities dealer.
“Margin requirement” means the amount by which the market value of the securities collateralizing a transaction exceeds the amount lent.
“Money market mutual funds” means a mutual fund which maintains a constant share price regardless of market fluctuations and which has an average maturity for its entire portfolio of one year or less.
“Nationally recognized statistical rating organization” means a credit rating agency (CRA) that issues credit ratings that the U.S. Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes. As of November 2011, nine organizations were designated as NRSROs to include: Kroll Bond Rating Agency; Moody’s Investor Service; Standard & Poor’s; Fitch Ratings; M. Best Company; Dominion Bond Rating Service, Ltd; Japan Credit Rating Agency, Ltd.; Egan-Jones Rating Company; and Morningstar, Inc.
“Pledged” means specific securities set aside as collateral which are identified to a specific account.
“Prime bankers’ acceptances” means an order to pay a certain amount of money on a certain date and bearing an unconditional promise of a bank to pay the draft at maturity. Bankers acceptances are secured by the creditworthiness of the bank and a U.S. corporation as well as goods underlying the transaction.
“Prime commercial paper” means an unsecured promissory note of a corporation backed by a line of credit with a bank, issued for a specific amount and maturing on a specific day.
“Repurchase agreements” means short-term transactions consisting of the purchase of a security with the promise to return it at a later date.
“U.S. government agency or instrumentality securities” means obligations of the U.S. government issued on behalf of U.S. government departments through the Federal Financing Bank and securities issued by U.S. government-sponsored enterprises or quasi-public corporations.
“U.S. Treasury securities” means a security that is backed by the full faith and credit of the U.S. government. (Ord. 14-21 § 3, 2014; Ord. 12-08 § 2, 2012)