1. Quick - What Do I Need To Know 2011 Quadrennial

2.  US Government Treasuries and Agencies  Insured CDs or in Colorado Only PDPA  Short term corporate bonds - < 3 years  Bankers Acceptances  Commercial Paper  Repurchase agreements  Guaranteed Investment Contract (GICs)  Local government pools John Lefebvre - Weld County Treasurer

3.  Safety ◦ Return of principle ahead of return on principle  Liquidity ◦ Is the issue large enough to trade if necessary  Yield ◦ Nice if you can get it John Lefebvre - Weld County Treasurer

4.  § 24-75-601 Legal investments of public funds definitions  § 24-75-601.1 Legal Investments  § 24-75-601.3 Remedial Actions – investments not made in conformance with statute  § 24-75-601.4 Liability of officials of public entities John Lefebvre - Weld County Treasurer

5.  § 24-75-601.5 Liability for sale of unlawful investments to the public entity  § 24-75-602 Bonds of Public Housing Authorities as legal investments  § 24-75-603 Depositories John Lefebvre - Weld County Treasurer

6.  § 24-75-701 Local Government Pooling  § 24-75-702 Local Government authority to pool funds  § 24-75-703 Trust method  § 24-75-704 Investment Limitations  § 24-75-705 Board of Trustees  § 24-75-706 Custodian John Lefebvre - Weld County Treasurer

7.  Must be rated by two rating agencies if it is regularly rated by two rating agencies  Must be in the two highest rating categories AA or AAA John Lefebvre - Weld County Treasurer

8.  If AAA then period from the date of settlement of this type of security to its maturity date shall be no more than five years unless the governing body of the public entity authorizes investment for a period in excess of five years.  If AA then <3 years John Lefebvre - Weld County Treasurer

9.  (II) Cash must be received by the investing public entity or a custodian acting on behalf of the investing public entity in a deliver versus payment settlement  The period from the date of settlement of a repurchase agreement to its maturity date shall be no more than five years unless the governing body of the public entity authorizes investment for a period in excess of five years.  John Lefebvre - Weld County Treasurer

10.  Must be rated AA or better  If AA must be 3 years or less in duration John Lefebvre - Weld County Treasurer

11.  This is what forced the large pooled investment funds to break the buck  Risk of a single issuer i.e. Lehman Brothers John Lefebvre - Weld County Treasurer

12.  Spread the risk  Gain the wisdom  Wisdom in the counsel of many John Lefebvre - Weld County Treasurer

13.  Make the approved broker dealers, etc sign that they have read the current policy with a specific date  Wrap the Colorado State law by reference  May further restrict but not expand current law John Lefebvre - Weld County Treasurer

14.  Known as PDPA  Specific to Colorado Department of Regulatory Agencies – DORA ◦ State Banking Commissioner ◦ Inspects banks in the program ◦ They must pledge 102% of public funds in government securities ◦ They may not want money above the FDIC limit on an account as a result  http://www.dora.state.co.us/BANKING/PDPAI NFORMATION/PDPAINDEX.HTM http://www.dora.state.co.us/BANKING/PDPAI NFORMATION/PDPAINDEX.HTM John Lefebvre - Weld County Treasurer

15.  The purpose of The Public Deposit Protection Act (PDPA) is to ensure that public funds held on deposit in banks are protected in the event that the bank holding the public deposits becomes insolvent. Not all public funds held by banks are protected under the PDPA. The PDPA protects only public funds placed in bank deposit accounts, which include checking, savings, bank money-market, and certificate of deposit (CD) accounts. John Lefebvre - Weld County Treasurer

16.  Out of State  Free Lunches  New Brokers  U-4s, FINRA John Lefebvre - Weld County Treasurer