To protect against potential losses by the collapse of individual securities dealers,
all trades will be executed on a delivered versus payment (DVP) basis with the securities
to be held in safekeeping by a third party custodian, acting as agent for the District
under the terms of a custody agreement or a Master Repurchase Agreement. The only
exception to the foregoing shall be depository accounts and securities purchases made
with: (i) LAIF and local government investment pools (LGIPs); (ii) placement certificates
of deposit; and, (iii) money market mutual funds, since the purchased securities are
not deliverable. Evidence of each these investments will be held by the AGM.
No outside broker-dealer or advisor may have access to the District's funds, accounts
or investments. Any transfer of funds handled through a broker-dealer must be approved
by persons identified in the "Delegation of Authority" section of this Policy.