Sarasota County Investment Policy 2018

Sarasota County Investment Policy 10 d. Safekeeping of Securities To protect against potential fraud and embezzlement, the investment securities of the County shall be secured through third-party custody and safekeeping procedures. Investments held in custody and safekeeping by the Federal Reserve Bank of Jacksonville or any other Reserve Bank will qualify as third-party safekeeping. Other banks may qualify as third-party banks for safekeeping provided the securities are held in the Trust Department of the bank, and the total assets of the bank are in excess of $4 billion. Certificates of deposits and other time deposits do not need to be placed with a third- party custodian, since they are collateralized through Chapter 280 of the Florida Statutes. Prior to any transfer of securities to a third-party custodian bank, a custodian/safekeeping agreement will be executed by the custodian bank and the Comptroller on behalf of the County and filed for record. e. Delivery vs. Payment Securities transactions between a broker/dealer and the custodian involving purchase or sale of securities by transfer of money or securities must be made on a “delivery vs. payment” basis, if applicable, to insure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. Delivery in or out of safekeeping with a Federal Reserve Bank will not be done simultaneously. f. Collateralization Collateral for public deposits is controlled by the State of Florida through Chapter 280 of the Florida Statutes. The County shall not be under any obligation to secure additional collateral beyond the provisions set forth in Chapter 280, except in the case of Repurchase Agreements. Collateral requirements for Repurchase Agreements will be contained in the Master Repurchase Agreement, executed between the Comptroller on behalf of the County and the broker/dealer or bank. The actual collateral requirements will be based on economic and financial conditions existing at the time of execution, as well as the credit risk of the particular broker/dealer or financial institution which enters into the repurchase agreement with the County. At no time will the collateral (margin ratios) be less than the following provisions: i. Margin Ratios For purposes of calculating the margin amount, the following ratios shall be applied to the market value of the purchased securities, depending on their maturity: Maturity of U.S. Treasury Purchased Securities & Securities Agencies Under 1 Year 101% Over 1 Year 102%