§ 3.10.090. Safekeeping of Securities.  


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  • 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.

( Res. No. 2015-2-7, (Policy No. 8.4, § IX), 2-10-2015 ; Res. No. 2016-2-3, (Policy No. 8.4, § IX), 2-23-2016 ; Res. No. 2019-2-4 , § 1(Policy No. 1.4, § 9), 2-12-2019)