§ 5.10.070. Collateralization.

A.

If borough moneys are invested in certificates of deposit or other deposits, the entire amount of principal and interest which will be payable to the borough 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 5 years or less from the date of the borough'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 borough's investment transaction ..... 103%

b.

Maturity date between 1 and 5 years from the date of the borough's investment transaction ..... 107%

3.

Government National Mortgage Association mortgage pass-through securities ..... 120%

4.

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

a.

Maturity date 1 year or less from the date of the borough's investment transaction ..... 102%

b.

Maturity date between 1 and 5 years from the date of borough's investment transaction ..... 107%

5.

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 borough.

(Ord. No. 89-7, § 1(part), 1989)