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A. Borough moneys shall be invested only in the following instruments:

1. U.S. Treasury securities with maturities not exceeding five years from the date of purchase;

2. Other obligations guaranteed by the U.S. government or its agencies and instrumentalities with maturities not exceeding five years from the date of purchase;

3. Repurchase agreements with financial institutions for the sale and repurchase of securities specified in subsections (A)(1) and (2) of this section, which meet the collateralization margin requirements for such securities specified in FNSBC 7.16.050 and with maturities not exceeding five years from the date of purchase;

4. Certificates of deposit and other deposits at banks, credit unions, or savings and loan associations collateralized as provided in FNSBC 7.16.050 with maturities not exceeding five years from the date of purchase;

5. Uncollateralized deposits at banks, credit unions, and savings and loan associations, to the extent that the deposits are insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration, or the Federal Savings and Loan Insurance Corporation with maturities not exceeding five years from the date of purchase;

6. Bonds and notes which are issued by any state or political subdivision thereof, and which are graded A or higher by Moody’s Investors Service, Inc., or Standard and Poor’s Corporation with maturities not exceeding five years from the date of purchase;

7. Prime commercial paper graded A1 or higher by Moody’s Investors Service, Inc., or P1 or higher by Standard and Poor’s Corporation with maturities not to exceed 270 days from the date of purchase;

8. Prime bankers acceptances offered by the 50 largest international banks with maturities not to exceed 180 days from the date of purchase;

9. Money market mutual funds whose portfolios consist entirely of instruments specified in subsections (A)(1), (2) and (3) of this section, maturity date not applicable;

10. The Alaska Municipal League Investment Pool, Inc., whose investments are made in accordance with Alaska Statutes, the terms of Pool’s common investment agreement, and the Pool regulations and procedures. Provisions of this chapter which conflict with those regulations and procedures shall not apply to the Borough’s investments in the Alaska Municipal League Investment Pool.

B. No person shall invest any Borough moneys in any instrument which is not listed in subsection (A) of this section. This prohibition includes, but is not limited to, investment of Borough moneys in any mutual fund, except as otherwise provided in subsection (A)(9) of this section, common or preferred stock, precious metal, zero coupon bond, corporate bond, option contract, futures contract or negotiable instrument with a variable interest rate.

C. The Mayor may enter into a short-term repurchase agreement, certificate of deposit or other authorized investment with the bank or credit union in which the Borough’s daily operating moneys are deposited, for the purpose of investing any excess operating moneys which will be needed in the immediate future to fund Borough operations. This investment may be continuing in nature, such that excess Borough operating moneys are continually invested. This short-term investment shall be governed by the provisions of this chapter relating to similar long-term investments, except that the Mayor may alter the margin requirements of FNSBC 7.16.050 with respect to this short-term investment, if they determine that such action is reasonably necessary to obtain and secure the investment.

D. All securities purchased by the Borough, and all other Borough investments, must mature such that the average maturity of the Borough’s portfolio does not exceed three years. Further, at the time of purchasing an investment, not more than 30 percent of the prior 12-month moving average value of the portfolio, excluding amounts held in on-demand accounts, may be in the three- to five-year range.

E. Subject to the limitations imposed by FNSBC 7.16.100, Borough moneys may be invested in any financial institution, as defined in FNSBC 7.16.010, except that moneys may be invested with a bank which does not maintain a business office in the United States on a regular and permanent basis only when investment with an “international bank” is expressly authorized by this chapter. (Ord. 2019-09 § 2, 2019; Ord. 99-007 § 3, 1999; Ord. 92-071 § 2, 1992; Ord. 87-069 § 4, 1988. 2004 Code § 3.04.030.)