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J. Limitation on Dezivatives: <br />The Finance Director will not invest City funds in "det'ivatives." <br />2, Credit Ratings -Securities may be purchased if at the time of purchase <br />the securities meet the following credit quality criteria: <br />A. United States Treasury and Ageney securities -Ratings are hat <br />required for U,S. Treasury securities. Agencies backed by the full faith <br />and credit of the United States govet•tzment, such as Government National <br />Mortgage Association (GNMA), must have at least two AAA/Aaa/AAA <br />longterm credit ratings from Standard & Poor's, Moody's or Fitcb. <br />respectively. Neither Standard & PQOr's, Moody's nor Fitch may rate this <br />security below AAA/AaaJAAA zespectively otherwise any security below <br />this rating shall for the purposes of this Policy be treated as Corporate debt <br />sttbj ect to the restrictions of sections 2.4 of this Part ~V. <br />B. Govermnent Spotzsored Ezzterprises (GSE) -Authorization of the <br />listed GSE in paragraph B of Section ~ is predicated upon these <br />institutions maintaining at least two AAA/AaaIAAA long-term credit <br />zatings from Standard & Poor's, Moody's ar Fitch respectively. <br />C. State & Local Governments - At the time of purchase, such <br />securities must carry at least two long-term credit z'ating of <br />AAA/Aaa/AAA from Standard & Poor's, Moody's or Fitch respectively <br />and neither Standard & Poar's, Maody's nor Fitch may rate this security <br />below AAA/Aaa/AAA respectively. If the AAA/Aaa/AAA credit rating <br />was achieved via some form of thit°d patty credit ezzlzatzcemetzt, then the <br />underlying issttez• must have two long-tez•zzt cz•edit rating none of which <br />may be below AA-/Aa3/AA- from Standard & Poot''s, Moody's or Fitch <br />respectively. These criteria will not apply to the purchase of the <br />outstanding debt of the City, <br />D° Corporate Debt Instrmnezrts and Commercial Patter - At the time of <br />purchase, all non-money market instruments must carry at least two long <br />tez•zn credit rating from Standard & Paor's, Maady's or Fitclz respectively <br />and neither Standard & Poor's, Moody's nor Fitch nzay zate this <br />instrument below AA-/Aa3/AA- respectively. For money market <br />instruments, which comply with rule 2a7 at the time of purchase, such <br />securities must carry at least two short-term credit ratings of AI+ from <br />Standard & Poor's, P1 from Moody's, or F1+ from Fitch. <br />Should a security's credit rating drop below these standards after <br />purchase, the City's authorized persotuiel shall act as Prudent Persons, in <br />managing the risks associated with this security, and shall immediately <br />notify the City Commission of such an event. <br />E. Banlc Deuosits or Certificates of Deposit - At the tithe of purchase, <br />the qualified public depositories (QPD) must comply with Chapter 2$Q,16 <br />7 <br />