§ 70-609. Authorized and suitable investments.

The assets of the City of New Orleans shall be invested, as provided in R.S. 33:2955, as amended, in the following:

(1)

Direct United States Treasury obligations, the principal and interest of which are fully guaranteed by the government of the United States.

(2)

Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by federal agencies and provided such obligations are backed by the full faith and credit of the United States of America, which obligations include but are not limited to:

a.

U.S. Export-Import Bank;

b.

Farmers Home Administration;

c.

Federal Financing Bank;

d.

Federal Housing Administration Debentures;

e.

General Services Administration;

f.

Government National Mortgage Association-guaranteed mortgage-backed bonds and guaranteed pass-through obligations;

g.

U.S. Maritime Administration-guaranteed title XI financing; and

h.

U.S. Department of Housing and Urban Development.

(3)

Bonds, debentures, notes, or other evidence of indebtedness issued or guaranteed by U.S. government instrumentalities, which are federally sponsored, and such obligations include but are not limited to:

a.

Federal Home Loan Bank System;

b.

Federal Home Loan Mortgage Corporation;

c.

Federal National Mortgage Association;

d.

Student Loan Marketing Association; and

e.

Resolution Funding Corporation.

Notwithstanding the foregoing list of investments, in no instance shall the city invest in obligations described in items (1), (2) and (3) of this section which are collateralized mortgage obligations that have been stripped into interest only or principal only obligations, inverse floaters, or structured notes. For the purposes of this item, "structured notes" shall mean securities of U.S. government agencies, instrumentalities, or government sponsored enterprises which have been restructured, modified, and/or reissued by private entities.

(4)

Direct security repurchase agreements of any federal book entry only securities enumerated in paragraphs (1), (2), and (3) above. "Direct security repurchase agreement" means an agreement under which the city buys, holds for a specified time, and then sells back those securities and obligations enumerated in paragraphs (1), (2), and (3).

(5)

Time certificates of deposit of state banks organized under the laws of Louisiana, or national banks having their principal offices in the State of Louisiana, savings accounts or shares of savings and loan associations and savings banks, as defined by R.S. 6:703(15) and (16), or share accounts and share certificate accounts of federally or state chartered credit unions issuing time certificates of deposit.

(6)

Mutual or trust fund institutions which are registered with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Act of 1940, and which have underlying investments consisting solely of and limited to securities enumerated in paragraphs (1), (2), and (3) of this section. Investment of funds in such mutual or trust fund institutions shall be limited to 25 percent of the monies considered available for investment as provided by R.S. 33:2955(A)(2). The attorney general has determined that only mutual funds created as a Massachusetts business trust are acceptable investments (Op. Atty. Gen. 88-546(A)).

(M.C.S., Ord. No. 18,621, §§ 1, 2, 2-5-98)