§ 1-10. Investment of surplus public funds  


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  • (a) Definitions.

    (1) Surplus public funds. For purposes of this section, the term "surplus public funds" means any funds in any general or special amount or fund of the county held or controlled by the governing body of the county, which funds are not reasonably contemplated to be needed for the purposes intended within a reasonable time from the date of such investment.

    (2) Controlled. For purposes of this section, the term "controlled" includes the power to direct the investment or disposition of moneys held by another party.

    (b) Authorized Investments. In addition to authorized investments under §§ 125.31, 166.261, F.S., the board hereby authorizes the investment and reinvestment of any surplus public funds in any of the following, unless the same are specifically disallowed by Florida law at the time of investment:

    (1) Direct obligations of, or obligations the principal interest of which are unconditionally guaranteed by, the United States Government, including bonds, notes and other obligations.

    (2) Obligations of any of the following federal agencies which obligations represent the full faith and credit of the United States of America, including:

    a. Export-Import Bank.

    b. Farm Credit System Financial Assistance Corporation.

    c. Farmers Home Administration—(Certificates of beneficial ownership).

    d. Federal Financing Bank.

    e. Federal Housing Administration.

    f. General Service Administration—Participation certificates.

    g. Government National Mortgage Association (GNMA or "Ginnie Mae").

    GNMA—guaranteed mortgage-backed bonds or

    GNMA—guaranteed pass-through obligations.

    h. U.S. Maritime Administration—Guaranteed Title XI financing.

    i. Small Business Administration.

    j. U.S. Department of Housing & Urban Development (HUD).

    Project Notes,

    Local Authority Bonds,

    New Communities Debentures—U.S. government guaranteed debentures.

    U.S. Public Housing Notes and Bonds—U.S. government guaranteed public housing notes and bonds.

    (3) Obligations of any of the following (non-full faith and credit) U.S. federal agencies, including:

    a. Federal Home Loan Bank System—Senior debt obligations.

    b. Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac").

    Participation certificates.

    Senior debt obligations.

    c. Federal National Mortgage Corporation (FNMA or "Fannie Mae").

    Mortgage-backed securities.

    Senior debt obligations.

    d. Student Loan Marketing Association (SLMA or "Sallie Mae").

    e. Resolution Funding Corp. (REFCORP).

    f. Farm Credit System.

    (4) The Local Government Surplus Trust Fund.

    (5) One (1) or more funding agreements, investment agreements, or guaranteed investment contracts to be issued pursuant to applicable state insurance regulations by an insurance company rated by Best Insurance Reports in one (1) of the two (2) highest category(ies), or whose claims paying ability is rated one (1) of the two (2) highest general rating category(ies) by Moody's Investor Service or Standard and Poor's Corporation or by a bank rated AA or better, or their respective successors and assigns, which agreements or contracts shall be issued out of the general account of such insurance company or issued out of a separate account guaranteed by the general account of such insurance company.

    (6) Any repurchase agreements with any bank, savings institution, or trust company which is insured by the Federal Deposit Insurance Corporation, or the Federal Savings and Loan Insurance Corporation, or with any broker/dealer with retail customers which is a member of the Securities Investors Protection Corporation provided such agreements are i) in writing; and ii) fully secured by securities unconditionally guaranteed by the United States of America, and provided further that (1) such collateral is held by the County or any agent acting solely for the county during the full term of such agreement; (2) such collateral is not subject to liens or claims of third parties; (3) such collateral has a market value (determined at least every fourteen (14) days) at least equal to one hundred two (102) percent of the amount invested in such agreement; (4) the County has a perfected first security interest in such collateral; and (5) such agreement shall provide that the failure to maintain such collateral at the level acquired by clause (3) above will require the County or its agents to liquidate the investments. Master repurchase agreements shall be executed with all dealers and brokers doing repurchase agreements with the County.

    (7) Commercial paper rated in one (1) of the two (2) highest rating categories by at least two (2) nationally recognized rating agencies or commercial paper backed by a letter of credit or line of credit rated in one (1) of the two (2) highest rating categories.

    (8) Bonds, notes, or obligations of the State of Florida, any municipality, or political subdivision, or any agency, or authority of this state, if such obligations are rated by at least two (2) nationally recognized rating services in any one (1) of the two (2) highest classifications.

    (9) Collateralized Mortgage Obligations (CMOs) which are bank eligible and pass the Federal Financial Institution Examination Council (FFIEC) Codes for CMO safety.

    (10) World Bank Notes, Bonds and Discount Notes and Notes, rated AAA or equivalent by Moody's Investor Service and or Standard and Poor's Corporation.

    (11) Interest-bearing time deposits or saving accounts in banks organized under the laws of this state, in national banks organized under the laws of the United States and doing business and situated in this state, in savings and loan associations which are under state supervision, or in federal savings and loan associations located in this state and organized under federal law and federal supervision, provided such deposits are secured by collateral as may be prescribed by law.

    (12) Bank time deposits evidenced by certificates of deposit issued by any bank, savings and loan association, trust company, or national banking association, which are (A) fully insured by the Federal Deposit Insurance Corporation and are governed by Florida Statutes and (B) to the extent not so insured, secured by government obligations provided (i) such obligations shall be in the physical possession of the County or a bank or trust of its choosing which is not the county of such certificate of deposit or banker's acceptance, of a first lien perfected interest in such obligations is created for the benefit of the issuer as fiduciary for the holders of the bonds, and (ii) such obligations must continuously have a market value at least equal to the amount so invested.

    (13) Bills of exchange or time drafts drawn on and accepted by a commercial bank (commonly referred to as a banker's acceptance) and eligible for use as collateral by member banks in borrowing from a Federal Reserve Bank, provided that the accepting bank or its holding company is rated in one (1) of the two (2) highest rating categories by Moody's Investor Service and Standard & Poor's Corporation.

    (14) Securities of, or other interests in, any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. section 80a-1 et seq., as amended from time to time, provided the portfolio of such investment company or investment trust is limited to United States Government obligations and to repurchase agreements fully collateralized by such United States Government obligations, and provided such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian.

    (15) In shares of the government fund or any other investment fund established by the Florida Counties Investment Trust, the assets of which are restricted to investment instrument's authorized by § 125.31, F.S. or by this section, as they may be amended from time to time.

    (16) Obligations of the Tennessee Valley Authority.

    (17) Reverse repurchase agreements which shall be used only for liquidity purposes and cannot be for a period longer than thirty (30) days in duration.

    (c) Existing Contracts; Agreement. Any surplus public funds subject to a contract or agreement on the date of the enactment of this section [December 8, 1987] shall not be invested contrary to such contract agreement.

(Ord. No. 87-82, §§ 1—3, 12-8-87; Ord. No. 92-31, § 1, 9-8-92; Ord. No. 95-40, §§ 1—9, 10-10-95)

refeditor

Ord. No. 87-82, adopted Dec. 8, 1987, effective Dec. 16, 1987, amended this code by adding provisions designated by the editor as § 1-10.