69C-2.007. Eligible Collateral Criteria and Restrictions

(1) Collateralized Mortgage Obligations (CMOs) and Real Estate Mortgage Investment Conduits (REMICs):

(a) Must be a direct obligation of a U.S. Agency.

(b) Must be in book entry form.

(c) Shall not include private label issues.

(d) Shall not include the following classes:

1. Interest Only;

2. Principal Only;

3. Residual; or

4. Zero.

(e) Prior to pledging or substituting these instruments, a tranche or deal summary describing the instrument must be submitted to the Chief Financial for his review and approval.

(2) Certificates of Deposit:

(a) The depository institution issuing the certificate of deposit must be rated AA or higher by either Moody’s or Standard and Poor’s rating service.

(b) Must be in U.S. Dollars.

(c) Must be negotiable.

(d) Must have a maturity of ninety (90) days or longer at the time of pledging.

(e) Prior to the pledge or substitution of a certificate of deposit, a copy of the certificate or other information about the depository issuing the certificate must be submitted to the Chief Financial Officer for his review and approval.

(3) Securities of, or other interests in, any open-end management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended from time to time. The Qualified Public Depository, prior to pledging or substituting these instruments, must submit a copy of the prospectus to the Chief Financial Officer for his review and approval.

(4) To the extent necessary to protect the integrity of the program, the Chief Financial Officer may at his discretion limit the pledging of the instruments set out in subsections (1), (2), and (3), to a percentage of the total collateral pledged by the Qualified Public Depository.

(5) The Chief Financial Officer may, at any time when in his judgment it is desirable to do so, refuse to accept certain securities or refuse to accept the reported market value of certain securities offered pursuant to Section 280.04, F.S., in order to ensure that sufficient collateral is on hand to meet the purposes of chapter 280, F.S. Guidelines the Chief Financial Officer may use to refuse securities or reported market value include, but are not limited to, whether the market value of the securities can be readily ascertained and whether the securities are illiquid.

(6) The following instruments or securities are excluded by action of the Chief Financial Officer and shall not be acceptable as collateral:

(a) Loans of any type.

(b) Repurchase and Reverse Repurchase Agreements (REPO).

(c) Any securities not approved by the Chief Financial Officer.

Rulemaking Authority 280.13(2), (5), 280.19, 280.041(7) FS. Law Implemented 280.04(1), 280.05, 280.13 FS. History–New 2-25-82, Amended 11-29-84, Formerly 4C-2.07, Amended 4-10-86, 6-28-88, 1-23-91, 7-12-92, Formerly 4C-2.007.