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7.0 AUTHORIZED FINANCIAL INSTITUTIONS AND QUALIFIED BROKER-DEALERS <br /> 7.1 if the City utilizes a SEC registered external investment advisor, the advisor shall <br /> maintain a list of authorized broker-dealers and complete the appropriate due diligence <br /> required by the SEC. The external investment advisor may use its own list of approved <br /> brokerldealers and financial institutions for investment purposes on behalf of the City. <br /> The investment advisor shall submit the list of approved broker/dealers to the City's <br /> FMSA investment staff on an annual basis.The Executive Finance Director may restrict <br /> the use of a broker/dealer which may be deemed unsuitable. <br /> 8.0 AUTHORIZED AND SUITABLE INVESTMENTS <br /> 8.1 Allowable Investment Instruments—State Law <br /> California Government Code Section 53601 establishes allowable investment <br /> instruments applicable to all local agencies along with maximum maturities, <br /> maximum specified percentages of total portfolio, and minimum quality requirements. <br /> Section 53601 .1 authorizes local agencies to invest in financial futures or financial <br /> option contracts in any of the allowable investment categories enumerated in section <br /> 53601. <br /> 8.2 Authorized Investments <br /> City of Santa Ana further restricts permitted investments to those listed below and <br /> where applicable, the Investment Advisory Committee may reduce maximum <br /> maturities, or maximum specified percentages of total portfolio (concentration limits), <br /> and may increase minimum quality requirements. Within this scope, the City <br /> diversifies its investments by types of investments, maturity dates, concentration <br /> limits, and quality requirements. <br /> A. United States Treasury Bills Notes and Bonds for which the full faith and credit <br /> of the United States are pledged forpayment of principal and interest. Purchases <br /> of this category shall not exceed five years to maturity. There is no percentage <br /> limit in this category. <br /> B. Obligations issued by a Federal Agency or a United States Government <br /> Sponsored Enterprise. Federal Agency Issues include, but are not limited to <br /> GNMA (Government National Mortgage Association), FFCB (Federal Farm <br /> Credit Bank), FHLB (Federal Home Loan Bank), FHLMC (Federal Home Loan <br /> Mortgage Corporation), FNMA (Federal National Mortgage Association), FHA <br /> (Federal Housing Administration), and TVA (Tennessee Valley Authority). <br /> Although there is no percentage limitation on these issues, purchases of this <br /> category shall not exceed five years to maturity and the "prudent investor" rule <br /> shall apply for a single agency name as U.S. Government backing is implied <br /> rather than guaranteed. <br /> Cijy of Santa-Annual Page 8 July 1.202.5 - <br /> Statement of Investment Policy June 30,2026 <br /> Resolution No. 2025-019 <br /> Page 12 of 24 <br />