HomeMy WebLinkAboutRESOLUTION 1978-037 ~7 _ - ~ _'_ _ _ _ _ _ _ ~1 '. -r .. '~
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WHER]?AS, the 1976-7? ~anaQement Letter recommended the estAblishment of
collateralization requirements for public funds invested by the rite of Kenai, and
WHEREAS, the purpose of collateralization requirements is to assure maximum aer•urity
for the investment of public funds, and to provide the greatest interest revemie
consistent with safety.
NOW, TFTF.RT?F11R1?, RF 1'~' RFSnT,VFn by the reuncil of the amity of Kenai, Atasks
as follows:
Rection l: collateral will be required to secure one hundred nerrent f1Ans1
of ail-'investments of the City of Kenai on any sum in excess of the amount
insured by the F.n.1.C,. or F.~.T,.t,r., insurance.
Section 2: The City of Kenai will accept various amounts of the basic tunes
of al listed below. Any one or a coml'ination of collateral tvpea may
be pledged as security with the following nercenta¢es of per value.
Required for
State and Municipal Aonds and Notes 100 of neposit
1. Alaska Issues ~ 100~k of par
2. Federally Guaranteed Project Notes-
Alaska issues 100~k of par
3. Ather States (Rsa rating or better) 120~k of par
4. City of Renai Issues 50$ of per
t `„
U.S. Government obligations
1. Direct Obligations
100iC of par
2. Federal Aq-eney issues l00# of par
, = 3. Federally Guaranteed Project
Notes -ether 100~k of par
Loans
l . Federally insured or ¢uaranteed
loans (FT;A, RRA a vq) 1f104 of par
- 2. Private insured loans
(a) Uninsured portion of private
insured loans 133-1/3~ of par
' 3. Secured loans up to three-fourths
~ of the total collateral required 133-1/3~ of par
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Resolution "!~. 78-3 . PnQ~ 2
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Loan Restrictions
i. All loans must be secured by nrenPrty in 41ARka.
2. Private mert¢a~-e insurance companies muRt hAVP in AxcpRR eP
S4 billion of morta-a¢e insurance in force and must i;^ sul+iPCt to
State regulatory authority.
3. Secured loans (loans secured by reel estate) must:
(a) have an eri~-inal balance of not less than ~i0,000 nor more
than X500, 000 except that the minimum should not apply to
mobile home loans. 'rho arf¢re¢ate of loans to env borrower
shall not exceed 8500, 000.
(b) not be: mere then 90 clays delinquent, extended at anv time,
classified by internal or external auditors. much leans must
be immediately replaced with eli¢ible collateral . -
4. For those banks pledging loans to serurP rite of sepal investments,
a Certified lisNns* of loans pledged by type must he received by the
City of Renal no later than the 10th day of the fellowin¢ month .
$ection 3: Any change in pledged collateral , P.XCP.Dt for par Value, su'~-stitutiens,
wi» require a release from the city of Kenai
Section 4: The City of Kenai reserves the ri¢ht to change collateral requirements
at any time.
PASSED BY THE COUNCIL t'1F THF. CITY f-F KFNAI, ALASKA, this 4th day of.TanuarY,
19?8.
ATTEST:
%~ZUiL
Sue .Peter, City Clerk
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