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2002 05 08 IABP.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 May 8, 2002 - 5:30 P.M. Board Member Felice ( Video Conference Location) Cisco Systems 170 West Tasman Dr., Bldg. 17, San Jose, California, 95135 I CALL TO ORDER a. Pledge of Allegiance b. Roll Call (760) 7 7 7 - 7 0 0 0 FAX (760) 777-7101 II PUBLIC COMMENT- IThis is the time set aside for public comment on any matter not scheduled on the agenda.) III CONFIRMATION OF AGENDA IV CONSENT CALENDAR A. Approval of Minutes of Meeting on April 10, 2002 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for March 2002 B. Consideration of Fiscal Year 2001 /02 Investment Policies VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report and other selected Financial Data - April 2002 B. Pooled Money Investment Board Reports - January 2002 and February 2002 VII BOARD MEMBER ITEMS VIII ADJOURNMENT La INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: May 8, 2002 ITEM TITI F- Transmittal of Treasury Report for March 2002 BACKGROUND: Attached please find the Treasury Report March 2002 RECOMMENDATION: Review, Receive and File the Treasury Report for March 2002 Finance Director T4t!t 4 aCP Q" MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for March 31, 2002 DATE: April 30, 2002 Attached is the Treasurer's Report for the month ending March 31, 2002. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Dept. The following table summarizes the changes in investment types for the month: Investment Beginning Purchased Notes Sold/Matured Other Ending Change Cash $4,924,312 (1) ($3,908,994) $1,015,318 ($3,908,994) LAI F $17,462,411 435,000 17,897,411 435,000 US Treasuries (2) $57,920,660 82,037 58,002,697 82,037 US Gov't Agencies (2) $12,977,185 3,024 12,980,209 3,024 Commercial Paper (2) $8,997,556 7,997,251 (9,000,000) 2,444 7,997,251 (1,000,305) Mutual Funds $8,464,067 1 205,144 8,258,923 205,144 Total 1$110,746,191 8 432 251 13 114 138 87 505 1 $106151 809 4 594 382 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. the City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. 3 0� Da e rvvu w« (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The amount reported in the other column represents the amortization of premium/discount for the month on US Treasury, Commercial Paper and Agency investments. 002 Z ! ! Z z z W A d c a CL ¢ E d gQ�U k mN 0 LL LL 0 g a y o` d o E E c E. m 22 N N N N $ IN cq V ? (� �F. 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N M C C c N LL 7 7 75 C C C m LL Q Qrn �_ �Q��ag 0 .� CITY OF LA OUINTA BALANCE SHEET OY31102 ASSETS: POOLED CASH LQRP INVESTMENT IN POOLED CASH INVESTMENT T-BILL/NOTEQ 3 OTHER AUTO MALL CASH LORP CASH BOND REDEMPTION CASH BOND RESERVE CASH BOND PROJECT CASH BOND ESCROW CASH PETTY CASH CASH R INVESTMENT TOTAL INVESTMENT IN LAND HELD FOR RESALE CRY CITY RDA RDA FA FD(FD LONG TERM FD(ED LONG TERM FINANCING LONG TERM GRAND CRY ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL 8,742,306.01 9,365,112.79 98,403.42 18,205,822.22 670,000.00 670,000.00 41,980,000.00 41,980,000.00 35,907.17 35,907. 17 4,300.74 1,933.67 6,234.41 44,862,133.68 551,554.71 45,413,688.39 1,000.00 1.000.00 50,723,306.01 54,937,454.38 651,891.80 106,312,652.19 ACCOUNTS RECEIVABLE 46.194.40 60,900.00 (106,218.14) 107,094.40 (160,842.83) PREMIUM/DISCOUNT ON INVESTMENT (54,624.69) 46,280.30 ,125,00 LQRP-ACCOUNTS RECEIVABLE 28,25.00 28 INTEREST RECEIVABLE 28,125.00 13,489,453.89 13, LOANINOTES RECEIVABLE 820.898.899 DUE FROM OTHER AGENCIES 820,898.89 99,,69 2,299,096 DUE FROM OTHER AGENCIES - CVAG 2,299,096.69 (2,299,09, 69) CVAG ALLOWANCE (2,299,096.69) 037 DUE FROM OTHER GOVERNMENTS 0.37 8,04 DUE FROM OTHER FUNDS 551,038.04 49 ,550.20 DUE FROM RDA 8,497,550.20 3.739,748.13 INTEREST ADVANCE -DUE FROM RDA 3,739,748.13 2,689,218.06 2,745,701,28 2,745,701.28 ADVANCES TO OTHER FUNDS 56,483.22 4, NSF CHECKS RECEIVABLE 4,706.86 633.40 33.40 83340 ACCRUED REVENUE 20,711,. 00 FIXED ASSETS 20,711,742.00 711,534534.4848 ACCUMULATED DEPRECIATION 711,534.48 4,155,00 TRAVEL ADVANCES 4,155.00 EMPLOYEE ADVANCES 15,496.25 PREPAID EXPENSES RECEIVABLE TOTAL 15 496.25 13,870,268.11 20,711,742.00 16.731.505.35 51,313,515.46 WORKER COMPENSATION DEPOSIT RENT DEPOSITS 75.00 UTILITY DEPOSITS 75.00 21.00 MISC. DEPOSITS 2,100.00 2.175.00 DEPOSITS TOTAL 2,175.00 9,988,279.05 9,988,279.05 GENERAL FIXED ASSETS ACCUMULATED DEPRECIATION AMOUNT AVAILABLE TO RETIRE L/T DEBT 0,866,860.97 851,847.65 80,866,860.97 9,568,708 62 7,750,000.00 89,568,708.62 AMOUNT TO BE PROVIDED FOR L/T DEBT 9,968,279.05 84,261,978.00 7,750,000.00 102,952,104.70 TOTAL OTHER ASSETS 951.847.65 TOTAL ASSETS LIABILITIES: ACCOUNTS PAYABLE DUE TO OTHER AGENCIES DUE TO OTHER FUNDS INTEREST ADVANCE -DUE TO CITY ACCRUED EXPENSES PAYROLL LIABILITIES STRONG MOTION INSTRUMENTS FRINGE TOED LIZARD FEES SUSPENSE DUE TO THE CITY OF LA QUINTA PAYABLES TOTAL ENGINEERING TRUST DEPOSITS SO. COAST AIR QUALITY DEPOSITS LORP DEPOSITS DEVELOPER DEPOSITS MISC. DEPOSITS AGENCY FUND DEPOSITS TOTAL DEPOSITS 64 595 74912 20,711,742.00 951 047 65 71 668 959 73 9,980,272.05 84 261,978.00 651 891 80 7.750,000 00 260.580.447.35 13.591.33 1,385,220.07 2,689,218.06 55,136.08 3,812.28 78,982.28 901.79 1,404,802.79 11,383,537.00 16,468.50 13,591.33 1,385,220.07 1,404,802.79 14,072,755.06 16,468.50 55,136.08 3,812.28 78,982.28 901.79 4,226,861.89 12,804,808.29 17.031,670,18 14,853.00 14,853.00 896,773.19 896,773.19 439,448.65 439,448.65 1,539 729.68 1,539,729.68 2,890,804.52 2,875,951.52 14,853.00 DEFERRED REVENUE 934.698.89 11,378,904.00 12 313 602.89 12,313,602.89 OTHER LWBILRIESTOTAL 934,698.89 11,378,904.00 COMPENSATED ABSENCES PAYABLE 373,536.65 189,725.50 373.536.65 768,036.50 DUE TO THE CITY OF LA QUANTA 578.311.00 18,747,405.50 18,747,405.50 DUE TO COUNTY OF RIVERSIDE 8,747,405.50 8,747,405.50 DUE TO C.V. UNIFIED SCHOOL DIST. DUE TO DESERT SANDS SCHOOL DIST. 64,335 000 DO 7,750,000.00 72,085 000.00 BONDS PAYABLE 951,847.65 84281978.00 84,261,978.00 7,750,OD0.00 92,963,825.65 TOTAL LONG TERM DEBT 8,037,512.30 951,847.65 24,198,565.29 84,261,978.00 7,750,000.00 125,199,903.24 TOTAL LIABILITIES EQUITY -FUND BALANCE 56,515,668.98 20,711,742.00 47,415,514.44 9,988,279.05 651.891.80 135.283.096.27 TOTAL LIABILITY 6 EQUITY 64 553 181 28 20 711 742 00 951847.65 71 614 079 73 9,988,279.95 84,261,78.00 651 891 80 7 750,000 00 260 482 992.51 42,567.84 54,880.00 97,447.84 CASH & INVESTMENT TOTAL 106,312,652.19 PREMIUMIDISCOUNT ON INVESTMENT (Lim TOTAL 106,151,809.36 INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: May 8, 2002 TITLE: Month End Cash Report - April 2002 and Other selected Financial Data BACKGROUND: This cash report is not a complete Treasury Report (exclude petty cash, deferred compensation and fiscal agent balances, but would report in a timely fashion selected cash balances. RECOMMENDATION: Information item only. �t� - JA-h-ItFalconer, Finance Director F .0. O c 00 LL N 0 r- O a m m L C N 07 CCU v0 J W N o 0 t_ co T C O p, U2¢ 00 P, coNmMQ (0000 co001�00O O_ �N0 000 �7 0)�pppp 1N p�00`'0 N(D O pp OO O pQppn �R(pp OOO OV 00� Opmj�000 S ON 0)O pp (n(VO m OO 0) 000 _T N0 In OOO V) U7 - v ((.� O) V V e- O )-- O V O N V O (D )- 00 (n m (f) to N m m m y M M M 0 M vIM N �((DD. CCo. amp U') E(o15 m (o vo�rnorno (" W a00 000 0 N C (n (D N c �0r-0D(VO 00 LO co m m co LL CO M 0 l00 () (D (D (D M N co N Cl Cl O to (D (D 0) V 0 Z, LL O O (O n O O^ 0 O) Ugo O o lVD O) 0 LQ O Of tm C M M (h LL U) O) 0 0 pOj O M W M M M 000 000 co 0 MO co O OCL O LL y If) (O O O 0 N 3 N 0) mN N N(LD n (MO 0) cq C M F M ): O^ co 00 00 Ono LL (Yi��O)t00)�(O (M7 Cl)M 4l a)(D (")NN V N 0 C 0 j V N V� V ��.. 0) (D (O co N `-' � N N N CN 0) 7 O N Y Y AU ` /0 M N f0 O (Y) O U U a) (D (D ¢ 01 c v aTi a^o O 0) N d C to U U y C m " C 0 w y am a) a) m C D N Y C` m U •p a) d C - C)C �/0 0: � m y N L N` N O) omU 00)) 0 (`0 a) 0 aaD_ C ui ''0 ¢ � ¢ IA j 7 N U O 0 N (D l0 d C', LU —) < w o z 0 ALLB �v¢ 0 L tD p c g 00 (f) to 0 M � ((j o r4 O N N LO m n (O M 1Q In N 0) 00 � n C .0.. O1 w � 10 Q. N N L_ a) O N N C O N N N On C 0 10 0) N L � ~ U C 0 O Op_ C W N L O v U� O T a d a) EL v, CO) b 0 m X w y U O N O C 3. E N U c m% C 0) m 0 E d 0 0 0* N N al � '° � r 3 C w a) nod�rnnt 0 n 0 m N 0 0 d N¢ O. V.L-I rn N CLv >•¢ p0 c 0 0 0 C .2 v = C 0 C O N 0 O W C L O C ° m E -° H a LL m N d � O n C o° c v v� O d 07 w C y a) � G a) L y0) T yj 0.- U nC C W M O E y O O L (0 C E w sL+ U C C O 0 N d O a) ml0 w E N C N .L.. a) a7 `°n .0 c E a c ° a7 � E 10 7 N C �Em aEy C C � — o n ie O 10 U U c 0 c 0u2 FRB: H.15--Selected Interested Rates, Web -Only Daily Update --May 2, 2002 http://www.federalreserve.gov/Releases/H15/update/ Federal Reserve Statistical Release H.1 S Selected Interest Rates (Daily) Release Date: May 2, 2002 Weekly release dates and announcements I Historical data I About Daily update Other formats: Screen reader I ASCII The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday throu H.15 DAILY UPDATE: WEB RELEASE ONLY SELECTED INTEREST RATES Yields in percent per annum Instruments Federal funds (effective) 1 2 3 Commercial paper 3 4 5 6 Nonfinancial 1-month 2-month 3-month Financial 1-month 2-month 3-month CDs (secondary market) 3 7 1-month 3-month 6-month Eurodollar deposits (London) 3 8 1-month 3-month 6-month Bank prime loan 2 3 9 Discount window borrowing 2 10 U.S. government securities Treasury bills (secondary market) 3 4 4-week 3-month 6-month Treasury constant maturities 11 1-month 3-month 6-month 1-year 2-year 3-year 5-year 7-year 10-year 20-year Treasury long-term average (25 years and above) 12 13 For immediate release May 2, 2002 2002 2002 2002 Apr Apr May 29 30 1 1.81 1.82 1.88 1.73 1.73 1.72 1.71 1.74 1.75 1.75 1.77 1.76 1.76 1.75 1.76 1.76 1.76 1.78 1.79 1.78 1.80 1.80 1.80 1.80 1.80 1.80 1.80 1.81 1.81 1.81 1.77 1.78 1.78 1.83 1.84 1.82 2.00 2.04 2.05 4.75 4.75 4.75 1.25 1.25 1.25 1.70 1.74 1.73 1.75 1.74 1.74 1.89 1.87 1.86 1.73 1.77 1.76 1.78 1.77 1.77 1.93 1.91 1.91 2.36 2.35 2.33 3.26 3.24 3.21 3.85 3.83 3.78 4.55 4.53 4.49 4.91 4.88 4.86 5.13 5.11 5.08 5.77 5.74 5.71 5.76 5.73 5.70 2002 May 2 1 of 3 UU3 05/03/2002 9:06 AM FRB: H. 15--Selected Interested Rates, Web -Only Daily Update --May 2, 2002 http://www.federalreserve.gov/Releases/HI5/update, Interest rate swaps 14 1-year 2.65 2.66 2.62 2-year 3.65 3.65 3.58 3-year 4.26 4.25 4.19 4-year 4.66 4.65 4.59 5-year 4.94 4.94 4.88 7-year 5.35 5.33 5.27 10-year 5.67 5.64 5.51 30-year 5.67 6.10 6.05 Corporate bonds Moody's seasoned Aaa 15 6.73 6.71 6.71 Baa 7.95 7.95 7.94 State & local bonds 16 Conventional mortgages 17 See overleaf for footnotes FOOTNOTES 1. The daily effective federal funds rate is a weighted average of rates on brokered trades. 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 4. On a discount basis. 5. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company. The trades represent sales of commercial paper by dealers or direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages (http://www.federalreserve.gov/releases/cp) for more information. 6. The 1-, 2-, and 3-month rates are equivalent to the 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page. 7. An average of dealer offering rates on nationally traded certificates of deposit. 8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 9. Rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-chartered commercial banks. Prime is one of several base rates used by banks to price short-term business loans. 10. Rate for the Federal Reserve Bank of New York. 11. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Treasury. 12. Based on the unweighted average of the bid yields for all Treasury fixed -coupon securities with remaining terms to maturity of 25 years and over. 13. A factor for adjusting the daily long-term average in order to estimate a 30-year rate can be found at http://www.treas.gov/domfin/statistics.htm. 14. International Swaps and Derivatives Association (ISDA) mid -market par swap rates. Rates are for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates collected at 11:00 a.m. by Garban Intercapital plc and published on Reuters Page ISDAFIXI. Source: Reuters Limited. 15. Moody's Aaa rates through December 6, 2001 are averages of Aaa utility and Aaa industrial bond rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only. 16. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 17. Contract interest rates on commitments for fixed-rate first mortgages. Source: FHLMC. Ov 4 2 of 3 05/03/2002 9:06 AM FRB: H.15--Selected Interested Rates, Web -Only Daily Update --May 2, 2002 http://www.federalreserve.gov/Releases/H 15/update/ DESCRIPTION OF THE TREASURY CONSTANT MATURITY SERIES Yields on Treasury securities at "constant maturity" are interpolated by the U.S. Treasury from the daily yield curve. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. These market yields are calculated from composites of quotations obtained by the Federal Reserve Bank of New York. The constant maturity yield values are read from the yield curve at fixed maturities, currently 1, 3 and 6 months and 1, 2, 3, 5, 7, 10 and 20 years. This method provides a yield for a 10-year maturity, for example, even if no outstanding security has exactly 10 years remaining to maturity. Weekly release dates and announcements I Historical data I About Daily update Other formats: Screen reader I ASCII Home I Statistical releases Accessibility To comment on this site, please fill out our feedback form. Last update: May 2, 2002 M 3 of 3 05/03/2002 9:06 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP, Federal Reserve .Release Commercial Paper Release I About I Outstanding I Historical discount rates I Historical outstandings Data as of May 2, 2002 Commercial Paper Rates and Outstandings Derived from data supplied by The Depository Trust Company Posted May 3, 2002 Yield curve Monev market basis 1 7 15 30 60 Daya to Maturity Financial --- Nonfinandal ••••. A2/P2 Percent 2.20 2.15 2.10 2.05 2,00 1.95 1.90 1.85 1.80 1.75 1.70 M 0:;6 1 of 3 05/03/2002 9:07 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve-gov/Releases/CP; Discount rate spread Thirtv-day A2/P2 less AA nonfinancial commercial naner (dailv) O1JAN98 01JAN99 01aANOO 016AN01 01t.1AN02 A2/P2 spread, 5—day moving average Discount rate history Thirtv-dav commercial naner (dailv) 01JAN98 01JAN99 01JANOO 01JAN01 — Financial — — — Nonfinancial •.... A2/P2 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars 2 of 3 Basis points 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 01JAN03 Percent 8 7 6 5 4 3 2 1 01JAN02 01JAN03 Billions of dollars r'v( 05/03/2002 9:07 AM FRB:Commercial Paper Rates and Outstandings http://www.federaireserve.gov/Releases/CP/ 130C 120C 110C 00C. 90C 800 360 350 340 330 320 310 300 290 280 270 260 250 240 230 220 210 200 190 180 01JAN98 01JAN99 01JAN00 01JAN01 01JAN02 01AN03 — Financial — — — Nonfinandal The daily commercial paper release will usually be available before 11:00am EST. However, the Federal Reserve makes no guarantee regarding the timing of the daily commercial paper release. When the Federal Reserve is closed on a business day, yields for the previous business day will appear in the historical discount rates table. This policy is subject to change at any time without notice. Commercial paper outstanding Commercial paper outstanding,, miscellaneous categories Volume Statistics 2002:Q1 Release I About I Outstanding I Historical discount rates I Historical outstandings Home I Statistical releases Accessibility To comment on this site, please fill out our feedback form. Last update: May 3, 2002 �v0 3 of 3 05/03/2002 9:07 AM LAIF Performance Report http://www.treasurer.ca.gov/laif/performance.htm Philip Angelides, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund LAIF Performance Report Reporting Date: 04/30/02 Effective Date: 04/30/02 Quarter Yield: 2.85% Daily: 2.76% Year: 3.59% Life: 185 Quarter Ending 03/31/02 Apportionment Rate: 2.96% Earnings Ratio: .00008101846104215 Fair Value Factor: 1.000783911 (updated) Monthly Average For April: 2.845% Pooled Money Irwestrnent Account Portfolio Composition $47.1 Billion 3137/02 Reverses Loans -2.12% 8.19% Treasuries 1439% ages Agencies 29.75% 11.03% CUs/BNs 13.70% Adobe PDF version of LAIF Performance. Help with Adobe Acrobat PDF. ■ Tre asuries ❑ Nbrtgages p Agencies ■ CD'srB his o Time Deposits ® Bankers Acceptances ■ Repo ■ Commercial Paper p Corporate Bonds p Loans ■ Reverses G.U9 1 of 2 05/03/2002 9:08 AM LAIF Performance Report http://www.treasurer.ca.gov/laif/perfortnance.htm Home Back 010 2 of 2 05/03/2002 9:08 AM CO C Np C) Q N c000� J[z },M O L U L cU U m m m �a Cr0 0 Cl) z 6 o z UQ O CF)T-CMONo00Cc CDO(o L~ Lr)� I-- � r- Cli LQ Cl cli NM r-CNMvi OOa)M 00��OCAqe N� N > M M r- CO 00 M Cv0 LO Ul) It N ti ti NN-�MLn00 �MNMMO M q1t M Ln QMCD N�Mr-L3 �NN(D� �OLC)CY) Mf�CDOONL� c) N C:)f-0) (DMqqt00CD �- O NN �C) 5CD V)o0~OMORIC NCO p)� ��p) o��Lpr- N NCDccoo M�-�co NLO qe N L M O L Cn N c0 d cn N E O c w cxu C c0 C C U C CD a) m C M d k N U v to U C ~ O LL E C .O U d CL 7 X> o d od 0 O_ d Z o X k d > N 'CO—n c~n C > W d O X w LO d U f9 .L+ ca N t6 O p Q CL cn0W. wcnC�0001— Z C O E d 0 It CM co co a) O O co N E wCD C Q 0 Lx a) (n �� e- r- N 00 U f- N M ►2ti00LNC'' MLn�N-00 -OOcMM 0OccM0000 lf�-1-- CM�NNCDNM�� D Z Z w w w w n' w W U Z )-00 Q}Q > I—w J0 J Ww LLaOd WY > rn QOQf0U U o�SF-OZ=m o<L) LU 2V1Wa wZV �UO2.:j F-Z ZQ J2m5O�- wzt00505OLLM OiGUQ-Mumw?Q r-I NI 00 CA 76 O 0.11 INVESTMENT ADVISORY BOARD Meeting Date: TITLE: May 8, 2002 Pooled Money Investment Board Report for January 2002 and February 2002 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for January 2002 and February 2002 is included in the agenda packet. RECOMMENDATION: Receive & File 4k4-� Joh . Falconer, Finance ffirector �� Philip Angelides January 2002 STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT JAN UARY 2002 TABLE OF CONTENTS SUMMARY................................................................. 1 SELECTED INVESTMENT DATA .................................... 2 PORTFOLIO COMPOSITION ........................................ 3 INVESTMENT TRANSACTIONS ..................................... 4 TIME DEPOSITS........................................................ 19 BANK DEMAND DEPOSITS .......................................... 33 POOLED MONEY INVESTMENT BOARD DESIGNATION... 34 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF JANUARY 2002 WITH JANUARY 2001 (DOLLARS IN THOUSANDS) JANUARY 2002 JANUARY 2001 CHANGE Average Daily Portfolio $ 51,386,227 $ 46,355,104 +5,031,123 Accrued Earnings $ 133,884 $ 250,852 -116,968 Effective Yield 3.068 6.372 -3.304 Average Life -Month End (In Days) 183 190 -7 1 Total Security Transactions Amount $ 23,466,004 $ 27,984,863 -4,518,859 Number 503 601 -98 Total Time Deposit Transactions Amount $ 1,951,700 $ 1,587,290 +364,410 Number 152 164 -12 Average Workday Investment Activity $ 1,210,367 $ 1,408,198 -197,831 Prescribed Demand Account Balances For Services $ 607,025 $ 161,287 +445,738 For Uncollected Funds $ 66,399 $ 241,225 -174,826 1 PHILIP ANGELIDES TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) January 31, 2002 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH Government Bills $ 1,435,750 2.74 +.45 Bonds 0 0.00 0.00 Notes 5,294,650 10.11 +1.43 Strips 0 0.00 0.00 Total Government $ 6,730,400 12.85 +1.88 Federal Agency Coupons $ 5,003,780 9.55 -.91 Certificates of Deposit 6,155,102 11.75 +1.22 Bank Notes 1,115,006 2.13 -.11 Bankers' Acceptances 17,877 0.03 0.00 Repurchases 0 0.00 0.00 Federal Agency Discount Notes 11,757,729 22.45 +.49 Time Deposits 5,151,795 9.83 -.37 GNMAs . 854 0.00 0.00 Commercial Paper 11,157,604 21.30 -1.83 FHLMC 8,384 0.02 0.00 Corporate Bonds 2,436,065 4.65 -.40 Pooled Loans 3,138,466 5.99 -.02 GF Loans 0 0.00 0.00 Reversed Repurchases -289,437 -.55 -.05 Total (All Types) $ 52,383,625 100.00 INVESTMENT ACTIVITY Pooled Money Other Time Deposits Totals PMIA Monthly Average Effective Yield Year to Date Yield Last Day of Month JANUARY 2002 NUMBER AMOUNT 503 $ 23,466,004 4 1,042 152 1,951,700 659 $ 25,418,746 3.068 3.867 DECEMBER 2001 NUMBER AMOUNT 477 $ 22,084,111 34 76,425 113 1,563,750 624 $ 23,724,286 3.261 4.005 Commercial Paper 21.30% Bankers Acceptance; 0.03% Time C 9.8 Pooled Money Investment Account Portfolio Composition $52.3 Billion Reverses Loans -0.55% Corporate 5 99% Treasuries 17 Ar°% CD's/BN's 13.88% 3 )ges Agencies 32.00% 1 /31 /02 B Treasuries B Mortgages Agencies 15 CD's/BN's ■ Time Deposits El Bankers Acceptances ■ Repo Commercial Paper ® Corporate Bonds ❑ Loans Reverses POOLED MONEY INVESTMENT ACCOUNT; a s'�' alb _.. W MATURITY _ TRANS'-, RANS PAR `� DAYS AMOUNT EFFECTIVE 29IE �_T1'PE DESCRIPTION_YIELD _ 14941 liE1� a.. EARNED �y YIELD 01/02/02 REDEMPTIONS CP SALOMON 01/02/02 1.860 $ 5,863 9 $2,726.29 1.886 CP SALOMON 01/02/02 1.860 50,000 9 23,250.00 1.886 CP SALOMON 01/02/02 1.860 50,000 9 23,250.00 1.886 CP SALOMON 01/02/02 1.860 50,000 9 23,250.00 1.886 CP SALOMON 01/02/02 1.860 50,000 9 23,250.00 1.886 CP BEAR 01/02/02 1.880 50,000 13 33,944.44 1.907 CP BEAR 01/02/02 1.880 50,000 13 33,944.44 1.907 CP CITICORP 01/02/02 1.870 50,000 15 38,958.33 1.897 CP CITICORP 01/02/02 1.870 50,000 15 38,958.33 1.897 CP CITICORP 01/02/02 1.870 50,000 15 38,958.33 1.897 CP CITICORP 01/02/02 1.870 50,000 15 38,958.33 1.897 CP SAFEWAY 01/02/02 2.280 50,000 16 50,666.67 2.314 CP SALOMON 01/02/02 1.900 50,000 16 42,222.22 1.928 CP SALOMON 01/02/02 1.900 50,000 16 42,222.22 1.928 CP SALOMON 01/02/02 1.900 50,000 16 42,222.22 1.928 CP SALOMON 01/02/02 1.900 50,000 16 42,222.22 1.928 CP SAFEWAY 01/02/02 2.250 26,500 19 31,468.75 2.283 CP SALOMON 01/02/02 1.800 10,000 20 10,000.00 1.826 CP SALOMON 01/02/02 1.800 50,000 20 50,000.00 1.826 CP SALOMON 01/02/02 1.800 50,000 20 50,000.00 1.826 CP GMAC 01/02/02 2.790 50,000 28 108,500.00 2.834 CP BEAR 01/02/02 2.320 50,000 85 273,888.89 2.365 CP BEAR 01/02/02 2.320 50,000 85 273,888.89 2.365 CP SAFEWAY 01/02/02 2.750 30,000 89 203,958.33 2.807 CP GECC 01/02/02 2.780 50,000 106 409,277.78 2.841 CP GECC 01/02/02 2.780 50,000 106 409,277.78 2.841 CP GECC 01/02/02 2.780 50,000 106 409,277.78 2.841 CP GECC 01/02/02 2.780 50,000 106 409,277.78 2.841 CP NCAT 01/02/02 2.810 50,000 106 413,694.44 2.872 CP NCAT 01/02/02 2.810 50,000 106 413,694.44 2.872 PURCHASES CP COUNTRY 01/29/02 1.830 50,000 CP GMAC 01/29/02 2.200 25,000 CP GMAC 01/29/02 2.200 50,000 01/03/02 REDEMPTIONS DISC NOTES FHLMC 01/03/02 4.810 50,000 360 2,405,000.00 5.123 DISC NOTES FHLMC 01/03/02 4.900 50,000 363 2,470,416.67 5.226 DISC NOTES FHLMC 01/03/02 4.900 50,000 363 2,470,416.67 5.226 DISC NOTES FHLMC 01/03/02 4.900 50,000 363 2,470,416.67 5.226 DISC NOTES FHLMC 01/03/02 4.900 50,000 363 2,470,416.67 5.226 DISC NOTES FHLMC 01/03/02 4.900 50,000 363 2,470,416.67 5.226 4 POOLED MONEY INVESTMENT ACCOUNT al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DESCRIPTION DATE YIELD MW BLEEP EARNEjQ ; YIELD 01/03/02 PURCHASES CD NOVA SCOT 1.810% 06/28/02 1.810 50,000 CD NOVA SCOT 1.810% 06/28/02 1.810 50,000 CD NOVA SCOT 1.810% 06/28/02 1.810 50,000 CD NOVA SCOT 1.810% 06/28/02 1.810 50,000 CD DEUTSCHE 1.840% 06/28/02 1.840 50,000 CD DEUTSCHE 1.840% 06/28/02 1.840 50,000 CD ANZ 1.840% 06/28/02 1.830 50,000 CD ANZ 1.840% 06/28/02 1.830 50,000 CD SVENSKA 1.820% 06/28/02 1.810 50,000 CD SVENSKA 1.820% 06/28/02 1.810 50,000 CD BAYER LNDS 1.830% 06/28/02 1.820 50,000 CD BAYER LNDS 1.830% 06/28/02 1.820 50,000 CD WESTPAC 1.860% 06/28/02 1.850 50,000 CD WESTPAC 1.860% 06/28/02 1.850 50,000 CP SALOMON 01/29/02 1.760 50,000 CP SALOMON 01/29/02 1.760 50,000 CP SALOMON 01/29/02 1.760 50,000 CP SALOMON 01/29/02 1.760 50,000 CP COUNTRY 01/29/02 1.840 50,000 CP COUNTRY 01/29/02 1.840 50,000 CP COUNTRY 01/29/02 1.840 50,000 CP COUNTRY 01/29/02 1.840 50,000 CP BEAR 02/28/02 1.770 50,000 CP BEAR 02/28/02 1.770 50,000 CP BEAR 02/28/02 1.770 50,000 CP BEAR 02/28/02 1.770 50,000 CP GECC 05/01/02 1.770 50,000 CP GECC 05/01/02 1.770 50,000 CP GECC 05/06/02 1.810 50,000 CP GECC 05/06/02 1.810 50,000 CP GECC 05/13/02 1.810 50,000 CP GECC 05/13/02 1.810 50,000 01/04/02 NO SALES PURCHASES DISC NOTES FHLMC 06/28/02 1.750 50,000 DISC NOTES FHLMC 06/28/02 1.750 50,000 DISC NOTES FHLMC 06/28/02 1.750 50,000 DISC NOTES FHLMC 06/28/02 1.750 50,000 DISC NOTES FHLMC 06/28/02 1.750 50,000 DISC NOTES FHLMC 06/28/02 1.750 50,000 01/07/02 NO SALES 5 POOLED MONEY INVESTMENT ACCOUNT"-," sv Al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION- DATE YIELD f0001 HELD EARNEQ YIELD 01/07/02 PURCHASES CP COUNTRY 01/29/02 1.830 25,000 CP COUNTRY 01/29/02 1.830 50,000 01/08/02 NO SALES PURCHASES CP SALOMON 01/14/02 1.720 50,000 CP SALOMON 01/14/02 1.720 50,000 CP MERRILL 01/14/02 1.700 50,000 CP MERRILL 01/14/02 1.700 50,000 CP MERRILL 01/14/02 1.700 50,000 CP MERRILL 01/14/02 1.700 50,000 CP CITICORP 01/17/02 1.760 50,000 CP CITICORP 01/17/02 1.760 50,000 CP CITICORP 01/17/02 1.760 50,000 CP CITICORP 01/17/02 1.760 50,000 CP SALOMON 01/28/02 1.760 50,000 CP GECC 01/29/02 1.750 50,000 CP GECC 01/29/02 1.750 50,000 CP GECC 01/29/02 1.750 50,000 CP GECC 01/29/02 1.750 50,000 DISC NOTES FNMA 04/03/02 1.670 50,000 DISC NOTES FNMA 05/31/02 1.700 50,000 DISC NOTES FNMA 05/31/02 1.700 50,000 PURCHASES c/ STRIP COUPONS 08/15/03 1.670 30,000 STRIP COUPONS 02/15/04 1.670 50,000 STRIP COUPONS 02/15/05 1.670 29,846 01/09/02 REDEMPTIONS CP GECC 01/09/02 1.870 50,000 20 51,944.44 1.897 CP GECC 01/09/02 1.870 50,000 20 51,944.44 1.897 CP CONAGRA 01/09/02 2.660 10,000 35 25,861.11 2.703 CP AMER EXP 01/09/02 2.300 50,000 84 268,333.33 2.344 CP AMER EXP 01/09/02 2.300 50,000 84 268,333.33 2.344 SALES c/ STRIP COUPONS 08/15/03 1.670 30,000 1 1,307.29 1.693 STRIP COUPONS 02/15/04 1.670 50,000 1 2,127.67 1.693 STRIP COUPONS 02/15/05 1.670 29,846 1 1,203.93 1.693 1, POOLED., MONEY INVESTMENT ACCOUNTsv al MATURITY TRANS PAR ` DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD (0001 HELD EA12 YIELD 01/09/02 PURCHASES CP SALOMON 01/10/02 1.650 50,000 CP SALOMON 01/10/02 1.650 50,000 01/10/02 REDEMPTIONS CD BAYER LNDS 1.980% 01/10/02 1.970 50,000 58 158,696.99 1.997 CD BAYER LNDS 1.980% 01/10/02 1.970 50,000 58 158,696.99 1.997 CP SALOMON 01/10/02 1.650 50,000 1 2,291.67 1.672 CP SALOMON 01/10/02 1.650 50,000 1 2,291.67 1.672 CP CITICORP 01/10/02 1.880 50,000 17 44,388.89 1.907 CP CITICORP 01/10/02 1.880 50,000 17 44,388.89 1.907 CP GECC 01/10/02 1.840 50,000 21 53,666.67 1.867 CP GECC 01/10/02 1.840 50,000 21 53,666.67 1.867 CP AMER EXP 01/10/02 2.300 50,000 85 271,527.78 2.344 CP AMER EXP 01/10/02 2.300 50,000 85 271,527.78 2.344 MTN FR GMAC 01/10/02 6.726 5,000 430 402,021.46 6.832 PURCHASES FHLB 3.260% 12/19/03 3.224 10,000 CP GECC 05/16/02 1.720 40,000 CP GECC 05/16/02 1.720 50,000 CP GECC 05/20/02 1.720 50,000 CP GECC 05/20/02 1.720 50,000 01/11/02 REDEMPTIONS CP GECC 01/11/02 2.040 50,000 44 124,666.67 2.073 CP GECC 01/11/02 2.040 50,000 44 124,666.67 2.073 CP GECC 01/11/02 2.040 50,000 44 124,666.67 2.073 MTN FR JP MORGAN 6.110% 01/11/02 6.110 50,000 731 5,464,807.28 5.457 MTN FR JP MORGAN 6.110% 01/11/02 6.110 50,000 731 5,464,807.28 5.457 PURCHASES CD CR AGRIC 1.780% 06/28/02 1.780 50,000 CD CR AGRIC 1.780% 06/28/02 1.780 50,000 CD UBS 1.760% 06/28/02 1.750 50,000 CD UBS 1.760% 06/28/02 1.750 50,000 CD BAYER LNDS 1.750% 06/28/02 1.750 50,000 CD BAYER LNDS 1.750% 06/28/02 1.750 50,000 CD CIBC 1.730% 06/28/02 1.730 50,000 CD CIBC 1.730% 06/28/02 1.730 50,000 CP COUNTRY 01/29/02 1.800 50,000 CP W/F 01/15/02 1.690 50,000 CP W/F 01/15/02 1.690 50,000 CP W/F 01/15/02 1.690 50,000 CP W/F 01/15/02 1.690 50,000 7 POOLED MONEY INVESTMENT ACCOUNT MATURITY TRANS PAR DAYS AMOUNT, EFFECTIVE DATE TYPE.,. DESCRIPTION DATE YIELD iM,., 4112 EARNEQ ,, YIELD 01/11/02 PURCHASES (continued) CID CITICORP 01/29/02 1.730 25,000 CID CITICORP 01/29/02 1.730 50,000 CID ASCC 02/11/02 1.740 50,000 CID ASCC 02/11/02 1.740 25,600 PURCHASES c/ TREAS NOTES 6.125% 08/31/02 1.720 44,000 TREAS NOTES 5.125% 12/31/02 1.720 17,995 TREAS NOTES 6.250% 02/15/03 1.720 40,000 TREAS NOTES 6.250% 02/15/03 1.720 50,000 TREAS NOTES 5.500% 02/28/03 1.720 40,886 01/14/02 REDEMPTIONS CID MERRILL 01/14/02 1.700 50,000 6 14,166.67 1.724 CID MERRILL 01/14/02 1.700 50,000 6 14,166.67 1.724 CID MERRILL 01/14/02 1.700 50,000 6 14,166.67 1.724 CID MERRILL 01/14/02 1.700 50,000 6 14,166.67 1.724 CID SALOMON 01/14/02 1.720 50,000 6 14,333.33 1.744 CID SALOMON 01/14/02 1.720 50,000 6 14,333.33 1.744 CID NCAT 01/14/02 1.920 50,000 17 45,333.33 1.948 CID NCAT 01/14/02 1.920 50,000 17 45,333.33 1.948 CID NCAT 01/14/02 1.920 50,000 17 45,333.33 1.948 CID MORG STAN 01/14/02 1.820 50,000 28 70,777.80 1.847 CID MORG STAN 01/14/02 1.820 50,000 28 70,777.80 1.847 CID CONAGRA 01/14/02 2.760 35,000 42 112,700.00 2.807 CID CONAGRA 01/14/02 2.760 25,000 66 126,500.00 2.812 CID SRAC 01/14/02 3.100 50,000 77 331,527.78 3.164 CID HERTZ 01/14/02 3.000 30,000 80 200,000.00 3.062 CID CONAGRA 01/14/02 3.010 24,000 89 178,593.33 3.074 PURCHASES CID CONAGRA 02/01/02 1.850 25,000 CID AMER EXP 04/02/02 1.620 25,000 CID AMER EXP 04/02/02 1.620 50,000 CP AMER EXP 04/02/02 1.620 50,000 CID SRAC 05/13/02 2.100 50,000 01/15/02 REDEMPTIONS CID W/F 01/15/02 1.690 50,000 4 9,388.89 1.713 CID W/F 01/15/02 1.690 50,000 4 9,388.89 1.713 CID W/F 01/15/02 1.690 50,000 4 9,388.89 1.713 CID W/F 01/15/02 1.690 50,000 4 9,388.89 1.713 DISC NOTES FNMA 01/15/02 4.300 50,000 274 1,636,388.89 4.507 DISC NOTES FNMA 01/15/02 4.300 50,000 274 1,636,388.89 4.507 POOLED MONEY INVESTMENT ACCOUNT - MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD : ' ; LQ441 : '' iiEL>z EARNS YIELD 01/15/02 REDEMPTIONS (continued) FNMA 6.625% 01/15/02 5.316 50,000 364 2,676,005.11 5.300 FNMA 6.625% 01/15/02 5.316 50,000 364 2,676,005.11 5.300 FNMA 6.625% 01/15/02 6.705 50,000 732 6,708,201.39 6.718 SALES c/ TREAS NOTES 6.125% 08/31 /02 1.720 44,000 4 8,640.52 1.743 TREAS NOTES 5.125% 12/31/02 1.720 17,995 4 3,474.78 1.743 TREAS NOTES 6.250% 02/15/03 1.720 40,000 4 8,004.89 1.743 TREAS NOTES 6.250% 02/15/03 1.720 50,000 4 10,006.00 1.743 TREAS NOTES 5.500% 02/28/03 1.720 40,886 4 8,096.04 1.743 PURCHASES CD RB CANADA 1.675% 07/31/02 1.670 50,000 CD RB CANADA 1.675% 07/31/02 1.670 50,000 CD RB CANADA 1.675% 07/31/02 1.670 50,000 CD RB CANADA 1.675% 07/31/02 1.670 50,000 CD CIBC 1.690% 07/31/02 1.690 50,000 CD CIBC 1.690% 07/31/02 1.690 50,000 CID AMER EXP 01/18/02 1.750 25,000 CID W/F 01/18/02 1.700 50,000 CID W/F 01/18/02 1.700 50,000 CID W/F 01/18/02 1.700 50,000 CID W/F 01/18/02 1.700 50,000 CID AMER EXP 01/18/02 1.750 50,000 CID HOUSEHOLD 04/02/02 1.610 25,000 CID FCAR 04/02/02 1.600 50,000 CID FCAR 04/02/02 1.600 50,000 TREAS BILLS 07/11/02 1.580 50,000 TREAS BILLS 07/11/02 1.580 50,000 TREAS BILLS 07/11/02 1.575 50,000 TREAS BILLS 07/11/02 1.575 50,000 TREAS BILLS 07/11/02 1.575 50,000 TREAS BILLS 07/11/02 1.575 50,000 01/16/02 NO SALES PURCHASES CD CIBC 1.660% 06/28/02 1.660 50,000 CD CIBC 1.660% 06/28/02 1.660 50,000 CID FCAR 02/08/02 1.670 50,000 CID FCAR 02/08/02 1.670 50,000 01/17/02 SALES CID FMCC 04/01/02 2.700 50,000 105 393,750.00 2.774 {r7 POOLED MONEY INVESTMENT ACCOUNT MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE' DESCRIPTION ; 2TE YIELD ,.f - LQ22 UM EARNED YIELD 01/17/02 SALES (continued) CP FMCC 04/01/02 2.700 50,000 105 393,750.00 2.774 CP FMCC 04/01/02 2.700 50,000 105 393,750.00 2.774 CP FMCC 04/01/02 2.700 50,000 105 393,750.00 2.774 TREAS NOTES 6.625% 03/31/02 1.610 50,000 510 4,352,653.91 6.038 TREAS NOTES 6.625% 03/31/02 1.610 50,000 510 4,352,653.91 6.038 REDEMPTIONS CP CITICORP 01/17/02 1.760 50,000 9 22,000.00 1.785 CP CITICORP 01/17/02 1.760 50,000 9 22,000.00 1.785 CP CITICORP 01/17/02 1.760 50,000 9 22,000.00 1.785 CP CITICORP 01/17/02 1.760 50,000 9 22,000.00 1.785 PURCHASES CD BN PARIS 1.700% 06/28/02 1.700 50,000 CD BN PARIS 1.700% 06/28/02 1.700 50,000 CP FCAR 02/01/02 1.670 25,000 CP FCAR 02/01/02 1.670 50,000 CP FMCC 04/02/02 2.700 50,000 CP FMCC 04/02/02 2.700 50,000 CP FMCC 04/02/02 2.700 50,000 CP FMCC 04/02/02 2.700 50,000 DISC NOTES FHLMC 06/28/02 1.630 25,746 01/18/02 REDEMPTIONS CP AMER EXP 01/18/02 1.750 25,000 3 3,645.83 1.774 CP AMER EXP 01/18/02 1.750 50,000 3 7,291.67 1.774 CP W/F 01/18/02 1.700 50,000 3 7,083.33 1.723 CP W/F 01/18/02 1.700 50,000 3 7,083.33 1.723 CP W/F 01/18/02 1.700 50,000 3 7,083.33 1.723 CP W/F 01/18/02 1.700 50,000 3 7,083.33 1.723 DISC NOTES FHLMC 01/18/02 3.570 50,000 217 1,075,958.33 3.699 PURCHASES CP SALOMON 02/01/02 1.710 50,000 CP SALOMON 02/01/02 1.710 50,000 CP MORG STAN 05/20/02 1.690 50,000 CP MORG STAN 05/20/02 1.690 50,000 CP MORG STAN 05/20/02 1.690 50,000 CP MORG STAN 05/20/02 1.690 50,000 CP GECC 06/28/02 1.660 20,000 DISC NOTES FHLMC 06/28/02 1.660 23,560 DISC NOTES FNMA 06/28/02 1.640 50,000 DISC NOTES FNMA 06/28/02 1.640 50,000 DISC NOTES FNMA 06/28/02 1.640 50,000 10 POOL, MONEY INVESTMENT ACCOUNT ' Al MATURITY TRAN S PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION PAR YIELD im HELD EARNEQ YIELD 01/18/02 PURCHASES (continued) DISC NOTES FNMA 06/28/02 1.640 50,000 DISC NOTES FNMA 06/28/02 1.640 50,000 DISC NOTES FNMA 06/28/02 1.640 50,000 MTN COUNTRY 6.770% 08/11/04 4.400 9,500 01/22/02 REDEMPTIONS CD U/B CALIF 2.570% 01/22/02 2.570 50,000 125 446,180.56 2.605 CD U/B CALIF 2.570% 01/22/02 2.570 50,000 125 446,180.56 2.605 CID CITICORP 01/22/02 1.850 50,000 29 74,513.89 1.878 CID CITICORP 01/22/02 1.850 50,000 29 74,513.89 1.878 CID CITICORP 01/22/02 1.850 50,000 29 74,513.89 1.878 CID CITICORP 01/22/02 1.850 50,000 29 74,513.89 1.878 CID GMAC 01/22/02 2.930 50,000 64 260,444.44 2.986 CID GMAC 01/22/02 2.930 50,000 64 260,444.44 2.986 CID SRAC 01/22/02 3.000 50,000 70 291,666.67 3.059 CID GOLDMAN 01/22/02 2.500 50,000 125 434,027.78 2.556 CID GOLDMAN 01/22/02 2.500 50,000 125 434,027.78 2.556 PURCHASES CD U/B CALIF 1.750% 06/28/02 1.750 40,000 CD U/B CALIF 1.750% 06/28/02 1.750 50,000 CID GECC 03/20/02 1.680 50,000 CID GECC 03/20/02 1.680 50,000 CID HOUSEHOLD 04/02/02 1.670 50,000 CID SRAC 04/02/02 2.110 50,000 DISC NOTES FHLMC 06/28/02 1.680 12,478 DISC NOTES FHLMC 06/28/02 1.680 50,000 DISC NOTES FNMA 06/28/02 1.670 50,000 DISC NOTES FNMA 06/28/02 1.670 50,000 DISC NOTES FNMA 06/28/02 1.670 50,000 DISC NOTES FNMA 06/28/02 1.670 50,000 DISC NOTES FNMA 06/28/02 1.670 50,000 DISC NOTES FNMA 06/28/02 1.670 50,000 TREAS NOTES 5.250% 05/15/04 3.206 50,000 TREAS NOTES 5.250% 05/15/04 3.206 50,000 TREAS NOTES 5.250% 05/15/04 3.206 50,000 TREAS NOTES 5.250% 05/15/04 3.206 50,000 01/23/02 NO SALES PURCHASES MTN FMCC 6.550% 09/10/02 3.501 13,290 MTN FMCC 6.000% 01/14/03 3.900 15,750 MTN JP MORGAN 5.750% 02/25/04 3.600 21,430 MTN GECC 4.250% 01/28/05 4.020 44,700 11 POOLED MONEY INVESTMENT ACCOUNT sv Al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD L09Q1 tiELlz EARNED YIELD 01/24/02 SALES TREAS NOTES 6.500% 03/31/02 1.710 50,000 639 5,611,991.86 6.403 TREAS NOTES 6.500% 03/31/02 1.710 50,000 639 5,611,991.86 6.403 PURCHASES CID SAFEWAY' 01/25/02 2.000 50,000 CID CONAGRA 02/05/02 1.880 50,000 CID GMAC 03/08/02 2.100 50,000 CID AMER EXP 04/26/02 1.750 25,000 CID MORG STAN 04/26/02 1.720 50,000 CID MORG STAN 04/26/02 1.720 50,000 CID MORG STAN 04/26/02 1.720 50,000 CID MORG STAN 04/26/02 1.720 50,000 CID AMER EXP 04/26/02 1.750 50,000 TREAS NOTES 4.750% 02/15/04 3.008 50,000 TREAS NOTES 4.750% 02/15/04 3.008 50,000 TREAS NOTES 5.250% 05/15/04 3.188 50,000 TREAS NOTES 5.250% 05/15/04 3.188 50,000 TREAS NOTES 5.250% 05/15/04 3.267 50,000 TREAS NOTES 5.250% 05/15/04 3.267 50,000 TREAS NOTES 5.250% 05/15/04 3.270 50,000 TREAS NOTES 5.250% 05/15/04 3.270 50,000 01/25/02 REDEMPTIONS CID SAFEWAY 01/25/02 2.000 50,000 1 2,777.78 2.027 CID GECC 01/25/02 1.750 20,000 25 24,305.56 1.776 CID FCAR 01/25/02 1.760 34,000 25 41,555.56 1.786 CID FCAR 01/25/02 1.760 50,000 25 61,111.11 1.786 CID GECC 01/25/02 1.750 50,000 25 60,763.89 1.776 CID GECC 01/25/02 1.750 50,000 25 60,763.89 1.776 CID BEAR 01/25/02 1.770 50,000 43 105,708.33 1.798 CID AMER EXP 01/25/02 1.760 50,000 43 105,111.11 1.788 DISC NOTES FNMA 01/25/02 3.670 25,000 226 575,986.11 3.808 DISC NOTES FNMA 01/25/02 3.670 50,000 226 1,151,972.22 3.808 MTN FR JP MORGAN 6.120% 01/25/02 6.120 50,000 731 5,387,925.34 5.380 MTN FR CHASE 6.423% 01/25/02 6.969 47,500 736 5,156,466.42 6.044 PURCHASES CP TEXT FIN 01/28/02 2.000 15,000 CID SAFEWAY 01/28/02 1.950 35,000 CID SAFEWAY 01/28/02 1.950 50,000 01/28/02 REDEMPTIONS CID TEXT FIN 01/28/02 2.000 15,000 3 2,500.00 2.028 CID SAFEWAY 01/28/02 1.950 35,000 3 5,687.50 1.977 12 POOLED MONEY INVESTMENT ACCOUNT MATURITY TRANS- PAR `` "DAYS AMOUNT EFFECTIVE DATE TYPE ;., DESCRIPTION • 2&U YIELD .. _ jQQQl , 12 . EARNED YIELD 01/28/02 REDEMPTIONS (continued) CID SAFEWAY CID SALOMON PURCHASES 01/28/02 1.950 50,000 01/28/02 1.760 50,000 CP BEAR 01/31/02 1.770 50,000 CP BEAR 01/31/02 1.770 50,000 CP SALOMON 01/31/02 1.780 50,000 CP SALOMON 01/31/02 1.780 50,000 CP TEXT FIN 02/05/02 2.050 40,000 CID COUNTRY 02/20/02 1.810 35,000 CID COUNTRY 02/20/02 1.810 50,000 MTN W/F 6.625% 07/15/04 3.830 20,000 01/29/02 REDEMPTIONS 3 8,125.00 1.977 20 48,888.89 1.786 CD U/B CALIF 2.120% 01/29/02 2.120 50,000 91 267,944.44 2.149 CD HYPO 2.120% 01/29/02 2.120 50,000 92 270,888.89 2.149 CD HYPO 2.120% 01/29/02 2.120 50,000 92 270,888.89 2.149 CD SOC GEN 2.140% 01/29/02 2.140 50,000 92 273,444.44 2.170 CD SOC GEN 2.140% 01/29/02 2.140 50,000 92 273,444.44 2.170 CD CR AGRIC 2.150% 01/29/02 2.150 50,000 92 274,722.22 2.179 CD CR AGRIC 2.150% 01/29/02 2.150 50,000 92 274,722.22 2.179 CD DEUTSCHE 2.150% 01/29/02 2.150 50,000 92 274,722.22 2.179 CD DEUTSCHE 2.150% 01/29/02 2.150 50,000 92 274,722.22 2.179 CD DEUTSCHE 2.150% 01/29/02 2.150 50,000 92 274,722.22 2.179 CD DEUTSCHE 2.150% 01/29/02 2.150 50,000 92 274,722.22 2.179 CD HELABA 2.410% 01/29/02 2.410 50,000 124 415,055.56 2.443 CD HELABA 2.410% 01/29/02 2.410 50,000 124 415,055.56 2.443 CD RABO 2.430% 01/29/02 2.420 50,000 126 423,514.70 2.453 CD RABO 2.430% 01/29/02 2.420 50,000 126 423,514.70 2.453 CID CITICORP 01/29/02 1.730 25,000 18 21,625.00 1.755 CID COUNTRY 01/29/02 1.830 25,000 22 27,958.33 1.857 CID GMAC 01/29/02 2.200 25,000 27 41,250.00 2.234 CID CAMPBELL 01/29/02 2.050 25,000 83 118,159.72 2.088 CID CITICORP 01/29/02 1.730 50,000 18 43,250.00 1.755 CP COUNTRY 01/29/02 1.800 50,000 18 45,000.00 1.826 CID GECC 01/29/02 1.750 50,000 21 51,041.67 1.776 CID GECC 01/29/02 1.750 50,000 21 51,041.67 1.776 CID GECC 01/29/02 1.750 50,000 21 51,041.67 1.776 CID GECC 01/29/02 1.750 50,000 21 51,041.67 1.776 CID COUNTRY 01/29/02 1.830 50,000 22 55,916.67 1.857 CID SALOMON 01/29/02 1.760 50,000 26 63,555.56 1.786 CID SALOMON 01/29/02 1.760 50,000 26 63,555.56 1.786 CID SALOMON 01/29/02 1.760 50,000 26 63,555.56 1.786 CID SALOMON 01/29/02 1.760 50,000 26 63,555.56 1.786 CID COUNTRY 01/29/02 1.840 50,000 26 66,444.44 1.868 CID COUNTRY 01/29/02 1.840 50,000 26 66,444.44 1.868 13 POOLED MONEY INVESTMENT ACCOUNT al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE _ TYPE DESCRIPTION �, . '- D$IF : ilEL�:_r ..I= _` M!<L!1 D YIELD 01/29/02 REDEMPTIONS (continued) CP COUNTRY 01/29/02 1.840 50,000 26 66,444.44 1.868 CP COUNTRY 01/29/02 1.840 50,000 26 66,444.44 1.868 CP GMAC 01/29/02 2.200 50,000 27 82,500.00 2.234 CP COUNTRY 01/29/02 1.830 50,000 27 68,625.00 1.857 CP GECC 01/29/02 1.750 50,000 29 70,486.11 1.776 CP GECC 01/29/02 1.750 50,000 29 70,486.11 1.776 CP GECC 01/29/02 1.750 50,000 29 70,486.11 1.776 CP GECC 01/29/02 1.750 50,000 29 70,486.11 1.776 CP GECC 01/29/02 1.750 50,000 29 70,486.11 1.776 CP GECC 01/29/02 1.750 50,000 29 70,486.11 1.776 CP SALOMON 01/29/02 1.750 50,000 29 70,486.11 1.776 CP SALOMON 01/29/02 1.750 50,000 29 70,486.11 1.776 CP NCAT 01/29/02 1.750 50,000 29 70,486.11 1.776 CP NCAT 01/29/02 1.750 50,000 29 70,486.11 1.776 CP NCAT 01/29/02 1.750 50,000 29 70,486.11 1.776 CP NCAT 01/29/02 1.750 50,000 29 70,486.11 1.776 CP SALOMON 01/29/02 1.830 50,000 32 81,333.33 1.858 CP SALOMON 01/29/02 1.830 50,000 32 81,333.33 1.858 CP SALOMON 01/29/02 1.830 50,000 32 81,333.33 1.858 CP SALOMON 01/29/02 1.830 50,000 32 81,333.33 1.858 CP SRAC 01/29/02 2.850 50,000 54 213,750.00 2.901 CP BEAR 01/29/02 2.110 50,000 91 266,680.56 2.150 CP BEAR 01/29/02 2.110 50,000 91 266,680.56 2.150 CP AMER EXP 01/29/02 2.130 50,000 92 272,166.67 2.171 CP GECC 01/29/02 2.130 50,000 92 272,166.67 2.171 CP GECC 01/29/02 2.130 50,000 92 272,166.67 2.171 CP HOUSEHOLD 01/29/02 2.130 50,000 95 281,041.67 2.171 CP FCAR 01/29/02 2.180 50,000 92 278,555.56 2.222 CP AMER EXP 01/29/02 2.350 50,000 117 381,875.00 2.400 CP AMER EXP 01/29/02 2.350 50,000 117 381,875.00 2.400 CP AMER EXP 01/29/02 2.350 50,000 117 381,875.00 2.400 CP AMER EXP 01/29/02 2.350 50,000 117 381,875.00 2.400 CP GOLDMAN 01/29/02 2.480 50,000 123 423,666.67 2.535 CP GOLDMAN 01/29/02 2.480 50,000 123 423,666.67 2.535 PURCHASES CP TEXT FIN 02/05/02 2.050 50,000 CP SALOMON 02/05/02 1.810 50,000 CP COUNTRY 02/13/02 1.850 50,000 CP COUNTRY 02/13/02 1.850 50,000 CP SALOMON 02/13/02 1.790 50,000 CP SALOMON 02/13/02 1.790 50,000 CP NCAT 02/13/02 1.780 50,000 CP NCAT 02/13/02 1.780 50,000 CP NCAT 02/13/02 1.780 50,000 CP NCAT 02/13/02 1.780 50,000 CP AMER EXP 02/13/02 1.730 50,000 14 POOLED MONEY INVESTMENT ACCOUNT ;l Al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION - DATE YIELD LQ441 HELD 1:BRNE YIELD 01/29/02 PURCHASES (continued) CP AMER EXP 02/13/02 1.730 50,000 CP FCAR 02/13/02 1.800 50,000 CP FCAR 02/13/02 1.800 50,000 CP AMER EXP 02/19/02 1.730 50,000 CP AMER EXP 02/19/02 1.730 50,000 CP FCAR 02/20/02 1.800 50,000 CP SRAC 02/20/02 2.130 50,000 CP CAMPBELL 02/28/02 1.830 25,000 CP COUNTRY 02/28/02 1.830 50,000 CP COUNTRY 02/28/02 1.830 50,000 CP COUNTRY 02/28/02 1.830 50,000 CP COUNTRY 02/28/02 1.830 50,000 CP COUNTRY 02/28/02 1.830 50,000 CP COUNTRY 02/28/02 1.830 50,000 CP COUNTRY 02/28/02 1.830 50,000 CP COUNTRY 02/28/02 1.830 50,000 DISC NOTES FHLMC 06/28/02 1.760 25,000 DISC NOTES FNMA 06/28/02 1.760 50,000 01/30/02 RRS TREAS NOTES 5.250% 05/15/04 1.300 25,000 TREAS NOTES 5.250% 05/15/04 1.250 50,000 TREAS NOTES 5.250% 05/15/04 1.250 50,000 TREAS NOTES 5.250% 05/15/04 1.300 50,000 TREAS NOTES 5.250% 05/15/04 1.300 50,000 TREAS NOTES 5.250% 05/15/04 1.300 50,000 PURCHASES_/ CD TORONTO 1.780% 04/29/02 1.770 25,000 CD TORONTO 1.780% 04/29/02 1.770 50,000 CD TORONTO 1.780% 04/29/02 1.770 50,000 CD TORONTO 1.780% 04/29/02 1.770 50,000 DISC NOTES FHLB 02/13/02 1.680 5,318 DISC NOTES FHLB 02/13/02 1.680 50,000 DISC NOTES FHLB 02/13/02 1.680 50,000 PURCHASES CP JP MORGAN 01/31/02 1.800 25,000 CP JP MORGAN 01/31/02 1.800 50,000 CP SALOMON 01/31/02 1.750 50,000 CP SALOMON 01/31/02 1.750 50,000 CP SALOMON 01/31/02 1.750 50,000 CP SALOMON 01/31/02 1.750 50,000 CP SALOMON 02/04/02 1.820 50,000 CP SALOMON 02/04/02 1.820 50,000 15 POOLED MONEY INVESTMENT ACCOUNT ;! Al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE 2AM LYP@ , DESCRIPTION w 2&M YIELD LQQ41 liELp EARNS YIELD 01/30/02 PURCHASES (continued) CP GECC 02/13/02 1.770 50,000 CP GECC 02/13/02 1.770 50,000 CP DOW 02/20/02 1.830 5,000 CP CONAGRA 02/20/02 1.980 29,950 CP DOW 02/20/02 1.830 50,000 CP DOW 02/20/02 1.830 50,000 CP GECC 02/20/02 1.770 50,000 CP GECC 02/20/02 1.770 50,000 CP W/F 02/20/02 1.760 50,000 CP W/F 02/20/02 1.760 50,000 CP W/F 02/20/02 1.760 50,000 CP W/F 02/20/02 1.760 50,000 CP W/F 02/20/02 1.760 50,000 CP W/F 02/20/02 1.760 50,000 CP CONAGRA 03/08/02 2.010 20,000 CP AMER EXP 04/02/02 1.770 50,000 CP AMER EXP 04/02/02 1.770 50,000 CP JP MORGAN 04/02/02 1.770 50,000 CP JP MORGAN 04/02/02 1.770 50,000 CP JP MORGAN 04/02/02 1.770 50,000 CP JP MORGAN 04/02/02 1.770 50,000 01/31/02 REDEMPTIONS CP JP.MORGAN 01/31/02 1.800 25,000 1 1,250.00 1.825 CP JP MORGAN 01/31/02 1.800 50,000 1 2,500.00 1.825 CP SALOMON 01/31/02 1.750 50,000 1 2,430.56 1.774 CP SALOMON 01/31/02 1.750 50,000 1 2,430.56 1.774 CP SALOMON 01/31/02 1.750 50,000 1 2,430.56 1.774 CP SALOMON 01/31/02 1.750 50,000 1 2,430.56 1.774 CP BEAR 01/31/02 1.770 50,000 3 7,375.00 1.794 CP BEAR 01/31/02 1.770 50,000 3 7,375.00 1.794 CP SALOMON 01/31/02 1.780 50,000 3 7,416.67 1.804 CP SALOMON 01/31/02 1.780 50,000 3 7,416.67 1.804 CP GOLDMAN 01/31/02 1.720 50,000 49 117,055.56 1.747 CP GOLDMAN 01/31/02 1.720 50,000 49 117,055.56 1.747 CP GOLDMAN 01/31/02 1.720 50,000 49 117,055.56 1.747 CP GOLDMAN 01/31/02 1.720 50,000 49 117,055.56 1.747 CP GOLDMAN 01/31/02 1.720 50,000 49 117,055.56 1.747 CP GOLDMAN 01/31/02 1.720 50,000 49 117,055.56 1.747 RRP TREAS NOTES 3.000% 11/30/03 1.050 50,000 49 (71,547.66) -1.064 TREAS NOTES 3.000% 11/30/03 1.050 50,000 49 (71,547.66) -1.064 TREAS NOTES 3.000% 11/30/03 1.050 50,000 49 (71,547.66) -1.064 TREAS NOTES 3.000% 11/30/03 1.050 50,000 49 (71,547.66) -1.064 TREAS NOTES 3.000% 11/30/03 1.050 50,000 49 (71,547.66) -1.064 16 POOLED MONEY INVESTMENT ACCOUNT ;l MATURITY TRANS PAR DAYS DATE I= DESCRIPTION DATE YIELD im - HELD 01/31/02 RRP (continued) TREAS NOTES 3.000% 11/30/03 1.050 50,000 49 PURCHASES TREAS NOTES 3.000% 01/31/04 3.015 50,000 TREAS NOTES 3.000% 01/31/04 3.015 50,000 TREAS NOTES 3.000% 01/31/04 3.015 50,000 TREAS NOTES 3.000% 01/31/04 3.015 50,000 TREAS NOTES 3.000% 01/31/04 3.020 50,000 TREAS NOTES 3.000% 01/31/04 3.020 50,000 TREAS NOTES 3.000% 01/31/04 3.060 50,000 TREAS NOTES 3.000% 01/31/04 3.060 50,000 TREAS NOTES 3.000% 01/31/04 3.150 50,000 TREAS NOTES 3.000% 01/31/04 3.158 50,000 TREAS NOTES 3.000% 01/31/04 3.158 50,000 `A AMOUNT EFFECTIVE EARNED YIELD (71,547.66) -1.064 a/ The abbreviations indicate the type of security purchased or sold; I.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes and Participation Certificates: Federal National Mortgage Association (FNMA), Farmers Home Administration Notes (FHA), Student Loan Marketing Association (SLMA), Small Business Association (SBA), Negotiable Certificates of Deposit (CD), Negotiable Certificates of Deposit Floating Rate (CD FR), Export Import Notes (EXIM), Bankers Acceptances (BA), Commercial Paper (CP), Government National Mortgage Association (GNMA), Federal Home Loan Bank Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC), Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount Notes (FFC), Corporate Securities (CB), US Ship Financing Bonds (TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee Valley Authority (TVA), Medium Term Notes (MTN), Real Estate Mortgage Investment Conduit (REMIC). b/ Purchase or sold yield based on 360 day calculation for discount obligations and Repurchase Agreements. c/ Repurchase Agreement. d/ Par amount of securities purchased, sold or redeemed. e/ Securities were purchased and sold as of the same date. f/ Repurchase Agreement against Reverse Repurchase Agreement. 2/ Outright purchase against Reverse Repurchase Agreement. h/ Security "SWAP" transactions. i/ Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. 18 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE ALHAMBRA Grand National Bank 11/27/01 2.060 3,000,000.00 05/17/02 Grand National Bank 05/17/01 3.700 3,000,000.00 05/17/02 Grand National Bank 07/13/01 3.520 3,095,000.00 07/12/02 Grand National Bank 01/07/02 1.840 1,000,000.00 08/13/02 Grand National Bank 01/09/02 1.840 2,000,000.00 08/13/02 Omni Bank 08/31/01 3.340 3,000,000.00 02/27/02 Omni Bank 10/25/01 2.190 1,300,000.00 04/23/02 Omni Bank 11/21/01 2.040 2,000,000.00 05/20/02 Omni Bank 11/30/01 1.870 3,000,000.00 06/03/02 ARROYO GRANDE Mid -State Bank 08/15/01 3.400 5,000,000.00 02/14/02 Mid -State Bank 09/14/01 3.230 5,000,000.00 03/13/02 Mid -State Bank 10/15/01 2.250 5,000,000.00 04/15/02 Mid -State Bank 11/20/01 2.040 5,000,000.00 05/17/02 Mid -State Bank 12/18/01 1.870 5,000,000.00 06/14/02 Mid -State Bank 01/16/02 1.660 5,000,000.00 07/16/02 BEVERLY HILLS City National Bank 08/20/01 3.380 25,000,000.00 02/15/02 City National Bank 09/05/01 3.330 40,000,000.00 03/07/02 City National Bank 04/16/01 4.170 25,000,000.00 04/16/02 City National Bank 12/03/01 1.820 25,000,000.00 06/03/02 BREA Jackson Federal Bank 11/14/01 1.900 10,000,000.00 05/13/02 Jackson Federal Bank 01/22/02 1.740 10,000,000.00 07/22/02 Pacific Western National Bank 11/20/01 2.060 1,000,000.00 05/20/02 CALABASAS First Bank of Beverly Hills FSB 11/27/01 2.040 10,000,000.00 02/27/02 First Bank of Beverly Hills FSB 12/07/01 1.820 10,000,000.00 03/20/02 CAMARILLO First California Bank 12/28/01 1.750 3,000,000.00 03/29/02 First California Bank 11/02/01 1.980 2,000,000.00 04/30/02 First California Bank 01/29/02 1.860 2,000,000.00 07/29/02 19 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE CAMERON PARK Western Sierra National Bank 01/16/02 1.680 3,000,000.00 07/16/02 Western Sierra National Bank 01/24/02 1.810 4,000,000.00 07/16/02 CHICO North State National Bank 11/28/01 2.080 1,500,000.00 05/17/02 North State National Bank 12/07/01 1.890 1,000,000.00 06/05/02 North State National Bank 01/25/02 1.830 5,000,000.00 07/26/02 Tri Counties Bank 12/05/01 1.780 10,000,000.00 03/05/02 Tri Counties Bank 12/17/01 1.750 10,000,000.00 03/18/02 CHULA VISTA North Island Federal Credit Union 11/27/01 2.030 5,000,000.00 02/27/02 North Island Federal Credit Union 01/18/02 1.750 20,000,000.00 07/17/02 CITY OF INDUSTRY EverTrust Bank 12/12/01 1.770 6,000,000.00 06/11/02 EverTrust Bank 01/25/02 1.790 6,000,000.00 07/29/02 CONCORD CA State 9 Credit Union 11/19/01 1.960 10,000,000.00 02/19/02 DUARTE Western State Bank 12/03/01 1.840 1,000,000.00 02/25/02 Western State Bank 08/14/01 3.420 1,000,000.00 02/25/02 Western State Bank 08/27/01 3.430 2,000,000.00 02/25/02 Western State Bank 10/01/01 2.420 2,000,000.00 04/02/02 DUBLIN Operating Engineers FCU 08/08/01 3.490 5,000,000.00 02/04/02 Operating Engineers FCU 10/11/01 2.230 5,000,000.00 04/09/02 Operating Engineers FCU 12/11/01 1.790 10,000,000.00 06/12/02 EL CENTRO Valley Independent Bank 08/14/01 3.420 7,500,000.00 02/14/02 Valley Independent Bank 10/31/01 2.040 20,000,000.00 04/30/02 20 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE ELSEGUNDO Hawthorne Savings FSB 01/04/02 1.760 30,000,000.00 04/04/02 Hawthorne Savings FSB 01/04/02 1.870 30,000,000.00 07/09/02 Xerox Federal Credit Union 11/13/01 1.850 20,000,000.00 02/14/02 Xerox Federal Credit Union 09/04/01 3.350 7,000,000.00 03/04/02 FRESNO United Security Bank 07/31/01 3.510 15,000,000.00 02/06/02 United Security Bank 01/10/02 1.730 5,000,000.00 04/10/02 United Security Bank 11/15/01 1.910 10,000,000.00 05/14/02 FULLERTON Fullerton Community Bank 11/19/01 2.040 9,000,000.00 05/17/02 Fullerton Community Bank 01/25/02 1.860 8,000,000.00 07/26/02 GLENDALE Verdugo Banking Company 01/08/02 1.740 5,000,000.00 04/02/02 Verdugo Banking Company 01/08/02 1.840 5,000,000.00 07/02/02 GRANADA HILLS Bank of Granada Hills 09/18/01 2.740 2,000,000.00 03/18/02 First State Bank of California 01/23/02 1.750 3,000,000.00 04/23/02 HUNTINGTON BEACH First Bank and Trust 08/27/01 3.400 2,000,000.00 02/26/02 First Bank and Trust 09/11/01 3.240 12,000,000.00 03/11/02 First Bank and Trust 10/29/01 2.150 3,000,000.00 04/26/02 IRVINE Commercial Capital Bank 01/07/02 1.880 6,000,000.00 07/01/02 LA JOLLA Silvergate Bank 08/08/01 3.520 5,000,000.00 02/04/02 Silvergate Bank 12/13/01 1.700 3,500,000.00 03/13/02 21 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE LAKEPORT Lake Community Bank 12/28/01 1.870 2,000,000.00 06/26/02 LODI Farmers & Merchant Bk Cen CA 01/11/02 1.790 10,000,000.00 07/10/02 LOS ANGELES Broadway Federal Bank 06/13/01 3.580 3,000,000.00 03/11/02 Broadway Federal Bank 01/08/02 1.850 2,500,000.00 07/08/02 California Center Bank 01/03/02 1.730 10,000,000.00 04/03/02 California Chohung Bank 11/19/01 1.930 4,000,000.00 02/19/02 California Chohung Bank 01/07/02 1.740 1,500,000.00 04/02/02 California Chohung Bank 01/14/02 1.710 1,000,000.00 04/15/02 Cathay Bank 09/04/01 3.340 30,000,000.00 03/04/02 Cathay Bank 09/26/01 2.430 19,000,000.00 03/25/02 Cathay Bank 10/10/01 2.230 19,000,000.00 04/08/02 Cedars Bank 09/06/01 3.460 2,500,000.00 03/06/02 Cedars Bank 10/04/01 2.260 5,000,000.00 04/02/02 Cedars Bank 12/21/01 1.840 2,000,000.00 06/19/02 Cedars Bank 01/08/02 1.850 2,500,000.00 07/11/02 Eastern International Bank 11/05/01 1.980 900,000.00 05/07/02 Eastern International Bank 12/10/01 1.890 1,000,000.00 06/10/02 General Bank 08/07/01 3.490 15,000,000.00 02/08/02 General Bank 05/30/01 3.710 10,000,000.00 02/20/02 General Bank 05/22/01 3.800 20,000,000.00 02/20/02 General Bank 08/13/01 3.400 15,000,000.00 03/07/02 General Bank 06/14/01 3.570 20,000,000.00 03/18/02 General Bank 12/10/01 1.830 25,000,000.00 06/07/02 General Bank 01/18/02 1.730 15,000,000.00 07/17/02 General Bank 01/28/02 1.860 20,000,000.00 08/01/02 Hanmi Bank 11/27/01 2.000 25,000,000.00 02/26/02 Hanmi Bank 12/20/01 1.730 25,000,000.00 03/21/02 Hanmi Bank 01/14/02 1.700 25,000,000.00 04/16/02 Hanmi Bank 01/31/02 1.740 20,000,000.00 05/02/02 Manufacturers Bank 12/11/01 1.720 30,000,000.00 03/11/02 Manufacturers Bank 12/21/01 1.750 20,000,000.00 03/21/02 Manufacturers Bank 01/31/02 1.760 10,000,000.00 05/01/02 Marathon National Bank 08/06/01 3.510 2,000,000.00 02/04/02 Mellon First Business Bank 07/18/01 3.610 25,000,000.00 02/01/02 Mellon First Business Bank 12/28/01 1.740 25,000,000.00 03/20/02 Mellon First Business Bank 09/24/01 2.360 25,000,000.00 03/20/02 22 NAME LOS ANGELES (continued TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE Mellon First Business Bank 01/04/02 1.740 25,000,000.00 04/04/02 Mercantile National Bank 08/13/01 3.410 2,000,000.00 02/08/02 Nara Bank, NA 10/24/01 2.190 5,000,000.00 04/22/02 Nara Bank, NA 12/19/01 1.830 5,000,000.00 06/17/02 Pacific Union Bank 12/05/01 1.760 20,000,000.00 03/05/02 Pacific Union Bank 01/03/02 1.860 10,000,000.00 07/02/02 Preferred Bank 08/13/01 3.390 4,000,000.00 02/08/02 Preferred Bank 08/27/01 3.400 7,000,000.00 02/26/02 Preferred Bank 06/11/01 3.600 9,000,000.00 03/08/02 Preferred Bank 12/18/01 1.800 9,000,000.00 03/18/02 Preferred Bank 07/16/01 3.550 6,000,000.00 07/16/02 Sae Han Bank 01/15/02 1.620 6,000,000.00 07/15/02 State Bank of India (Calif) 08/27/01 3.380 2,000,000.00 02/25/02 State Bank of India (Calif) 06/12/01 3.600 5,500,000.00 04/02/02 State Bank of India (Calif) 07/18/01 3.510 2,000,000.00 07/18/02 Western Federal Credit Union 10/24/01 2.190 25,000,000.00 04/22/02 Wilshire State Bank 08/31/01 3.340 4,000,000.00 02/27/02 Wilshire State Bank 11/06/01 1.970 4,000,000.00 05/06/02 Wilshire State Bank 11/15/01 1.910 2,000,000.00 05/14/02 Wilshire State Bank 12/19/01 1.850 8,000,000.00 06/18/02 Wilshire State Bank 07/13/01 3.540 4,000,000.00 07/12/02 MANTECA Delta National Bank 01/04/02 1.770 1,000,000.00 04/04/02 Delta National Bank 01/18/02 1.660 1,000,000.00 04/10/02 Delta National Bank 01/10/02 1.740 1,000,000.00 04/10/02 MERCED County Bank 10/17/01 2.260 5,000,000.00 04/15/02 County Bank 12/07/01 1.910 10,000,000.00 06/06/02 County Bank 01/16/02 1.680 5,000,000.00 07/16/02 MONTEREY PARK Trust Bank FSB 01/02/02 1.760 3,000,000.00 04/02/02 Trust Bank FSB 01/02/02 1.860 3,000,000.00 07/01/02 NORTH HIGHLANDS Safe Credit Union 08/01/01 3.490 20,000,000.00 02/06/02 23 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE NORTH HIGHLANDS (continued) Safe Credit Union 01/14/02 1.750 5,000,000.00 07/15/02 OAKDALE Oak Valley Community Bank 09/05/01 3.380 500,000.00 03/22/02 Oak Valley Community Bank 03/23/01 4.140 1,500,000.00 03/22/02 Oak Valley Community Bank 10/10/01 2.210 2,500,000.00 04/08/02 Oak Valley Community Bank 06/05/01 3.640 1,500,000.00 06/05/02 OAKLAND Metropolitian Bank 09/24/01 2.390 1,000,000.00 03/25/02 Metropolitian Bank 10/31/01 2.100 1,000,000.00 04/29/02 Metropolitian Bank 11/29/01 1.960 1,000,000.00 05/28/02 ONTARIO Citizens Business Bank 03/26/01 4.150 30,000,000.00 03/26/02 Citizens Business Bank 04/05/01 4.070 25,000,000.00 04/05/02 Citizens Business Bank 05/07/01 3.800 10,000,000.00 05/07/02 Citizens Business Bank 12/03/01 1.830 25,000,000.00 06/03/02 Citizens Business Bank 08/22/01 3.480 30,000,000.00 08/22/02 PALO ALTO Bank of Petaluma 08/06/01 3.520 1,000,000.00 02/25/02 Bank of Petaluma 06/05/01 3.660 2,500,000.00 02/25/02 Bank of Petaluma 12/17/01 1.760 12,000,000.00 03/13/02 Bank of Santa Clara 06/04/01 3.630 20,000,000.00 02/25/02 Bay Area Bank 10/30/01 2.090 5,000,000.00 04/29/02 Bay Area Bank 01/14/02 1.760 5,000,000.00 07/15/02 Bay Bank of Commerce 10/30/01 2.110 5,000,000.00 04/29/02 Coast Commercial Bank 06/11/01 3.620 20,000,000.00 02/25/02 Coast Commercial Bank 01/14/02 1.780 5,000,000.00 07/15/02 Cupertino National Bank 06/01/01 3.610 20,000,000.00 02/25/02 Cupertino National Bank 12/17/01 1.740 10,000,000.00 03/13/02 Cupertino National Bank 10/30/01 2.090 35,000,000.00 04/29/02 Cupertino National Bank 01/14/02 1.760 10,000,000.00 07/15/02 Golden Gate Bank 06/01/01 3.630 9,000,000.00 02/25/02 Mid -Peninsula Bank 06/01/01 3.620 5,000,000.00 02/25/02 Mid -Peninsula Bank 09/14/01 3.000 10,000,000.00 03/13/02 Mid -Peninsula Bank 10/30/01 2.100 35,000,000.00 04/29/02 24 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE PALO ALTO (continued Mt. Diablo National Bank 12/11/01 1.730 10,000,000.00 03/13/02 Peninsula Bank of Commerce 06/11/01 3.600 15,000,000.00 02/25/02 PASADENA Community Bank 08/13/01 3.380 15,000,000.00 02/08/02 Community Bank 04/25/01 3.770 5,000,000.00 04/25/02 Community Bank 06/22/01 3.400 20,000,000.00 06/21/02 Community Bank 07/11/01 3.520 20,000,000.00 07/11/02 Community Bank 01/28/02 1.860 10,000,000.00 07/11/02 Wescom Credit Union 10/09/01 2.270 25,000,000.00 04/08/02 Wescom Credit Union 11/13/01 1.840 10,000,000.00 05/13/02 Wescom Credit Union 12/14/01 1.830 15,000,000.00 06/12/02 Wescom Credit Union 01/28/02 1.890 15,000,000.00 07/26/02 PLACERVILLE El Dorado Savings Bank 02/08/01 4.770 5,000,000.00 02/08/02 El Dorado Savings Bank 03/07/01 4.520 5,000,000.00 03/07/02 El Dorado Savings Bank 03/22/01 4.210 5,000,000.00 03/22/02 El Dorado Savings Bank 04/13/01 4.100 5,000,000.00 04/12/02 El Dorado Savings Bank 04/13/01 4.100 5,000,000.00 04/12/02 El Dorado Savings Bank 05/02/01 3.910 5,000,000.00 05/02/02 El Dorado Savings Bank 06/18/01 3.460 5,000,000.00 06/10/02 El Dorado Savings Bank 06/05/01 3.640 5,000,000.00 06/10/02 El Dorado Savings Bank 12/13/01 1.740 10,000,000.00 06/10/02 POMONA PFF Bank and Trust 08/28/01 3.420 8,000,000.00 02/28/02 PFF Bank and Trust 12/04/01 1.820 10,000,000.00 06/03/02 PFF Bank and Trust 12/06/01 1.890 10,000,000.00 06/03/02 PORTERVILLE Bank of the Sierra 01/23/02 1.750 10,000,000.00 04/22/02 UQ INCY Plumas Bank 05/23/01 3.800 2,000,000.00 02/20/02 25 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE RANCHO SANTA FE La Jolla Bank, FSB 09/24/01 2.360 10,000,000.00 02/01/02 La Jolla Bank, FSB 06/06/01 3.620 10,000,000.00 03/01/02 La Jolla Bank, FSB 11/20/01 2.060 15,000,000.00 05/23/02 La Jolla Bank, FSB 08/06/01 3.500 15,000,000.00 08/06/02 RED BLUFF Tehama Bank 07/03/01 3.620 5,000,000.00 07/03/02 REDDING North Valley Bank 12/14/01 1.810 3,000,000.00 06/12/02 REDWOOD CITY Provident Central Credit Union 11/01/01 2.020 20,000,000.00 05/01/02 RICHMOND Mechanics Bank 03/07/01 4.520 10,000,000.00 03/07/02 Mechanics Bank 04/06/01 4.000 10,000,000.00 04/05/02 Mechanics Bank 04/25/01 3.790 10,000,000.00 04/25/02 Mechanics Bank 05/07/01 3.870 10,000,000.00 05/07/02 Mechanics Bank 06/12/01 3.560 10,000,000.00 06/12/02 Mechanics Bank 07/11/01 3.520 10,000,000.00 07/11/02 Mechanics Bank 08/13/01 3.490 10,000,000.00 08/13/02 Mechanics Bank 10/12/01 2.380 10,000,000.00 10/15/02 SACRAMENTO American River Bank 09/28/01 2.370 1,000,000.00 03/29/02 American River Bank 09/24/01 2.360 3,000,000.00 03/29/02 American River Bank 10/12/01 2.250 1,500,000.00 04/10/02 American River Bank 06/26/01 3.380 1,000,000.00 06/26/02 American River Bank 01/11/02 1.780 1,000,000.00 07/10/02 American River Bank 01/14/02 2.200 1,500,000.00 01/14/03 Bank of Sacramento 12/21/01 1.770 1,000,000.00 03/21/02 Bank of Sacramento 12/21/01 1.770 1,000,000.00 03/21/02 Bank of Sacramento 11/15/01 1.930 1,500,000.00 05/14/02 Bank of Sacramento 11/29/01 1.960 2,000,000.00 05/28/02 Golden One Credit Union 03/23/01 4.120 20,000,000.00 03/22/02 Golden One Credit Union 04/25/01 3.770 10,000,000.00 04/25/02 26 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SACRAMENTO (continued) Golden One Credit Union 12/05/01 1.820 10,000,000.00 05/23/02 Golden One Credit Union 06/08/01 3.600 10,000,000.00 06/07/02 Merchants National Bank 10/19/01 2.210 2,000,000.00 04/17/02 Merchants National Bank 07/23/01 3.460 2,000,000.00 07/23/02 River City Bank 11/26/01 1.970 2,000,000.00 02/26/02 River City Bank 10/04/01 2.330 4,000,000.00 04/02/02 River City Bank 01/07/02 1.860 2,000,000.00 07/01/02 River City Bank 01/28/02 1.870 3,000,000.00 07/29/02 U.S. Bank 08/07/01 3.500 25,000,000.00 02/04/02 U.S. Bank 11/20/01 2.000 25,000,000.00 02/19/02 U.S. Bank 08/07/01 3.550 25,000,000.00 05/06/02 Union Bank of California 10/19/01 2.210 50,000,000.00 04/17/02 Union Bank of California 10/29/01 2.100 100,000,000.00 04/17/02 Union Bank of California 11/09/01 1.800 150,000,000.00 05/08/02 Union Bank of California 12/19/01 1.830 100,000,000.00 06/18/02 United California Bank 01/23/02 1.710 22,000,000.00 03/06/02 United California Bank 09/07/01 3.380 60,000,000.00 03/06/02 SALINAS Community Bk Central Calif 12/21/01 1.710 10,000,000.00 03/21/02 Community Bk Central Calif 01/09/02 1.700 10,000,000.00 04/11/02 Community Bk Central Calif 10/25/01 2.170 5,000,000.00 04/23/02 Community Bk Central Calif 10/25/01 2.170 5,000,000.00 04/23/02 SAN BERNARDINO Business Bank of California 08/06/01 3.530 12,000,000.00 02/05/02 Business Bank of California 01/09/02 1.730 8,000,000.00 04/09/02 SAN DIEGO First United Bank 02/16/01 4.950 1,000,000.00 02/15/02 First United Bank 01/18/02 1.680 2,000,000.00 07/18/02 Mission Federal Credit Union 08/28/01 3.430 10,000,000.00 02/27/02 Neighborhood National Bank 11/21/01 1.990 2,000,000.00 02/22/02 First Future Credit Union 09/04/01 3.320 5,000,000.00 03/01/02 First Future Credit Union 11/30/01 1.850 5,000,000.00 05/29/02 First Future Credit Union 12/19/01 1.830 3,000,000.00 06/21/02 27 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SAN FRANCISCO America California Bank 01/28/02 1.790 1,500,000.00 04/30/02 America California Bank 10/31/01 2.060 1,000,000.00 04/30/02 Bank of Canton California 09/10/01 3.230 20,000,000.00 03/08/02 Bank of Canton California 12/17/01 1.750 15,000,000.00 04/12/02 Bank of Canton California 11/21/01 2.030 10,000,000.00 05/22/02 Bank of Canton California 05/22/01 3.770 15,000,000.00 05/22/02 Bank of Canton California 12/12/01 1.770 20,000,000.00 06/11/02 Bank of Canton California 07/16/01 3.550 25,000,000.00 07/16/02 Bank of Canton California 08/31/01 3.470 20,000,000.00 08/30/02 Bank of the West 08/17/01 3.420 25,000,000.00 02/20/02 Bank of the West 08/02/01 3.560 25,000,000.00 02/20/02 Bank of the West 08/24/01 3.400 50,000,000.00 02/20/02 Bank of the West 01/02/02 1.730 34,000,000.00 04/02/02 Bank of the West 01/08/02 1.730 50,000,000.00 04/02/02 Bank of the West 10/15/01 2.260 50,000,000.00 04/15/02 Bank of the West 11/20/01 2.050 142,000,000.00 05/20/02 Bank of the West 01/24/02 1.780 76,500,000.00 07/23/02 California Federal Bank 05/24/01 3.730 50,000,000.00 02/22/02 California Federal Bank 10/16/01 2.270 100,000,000.00 04/15/02 California Federal Bank 12/14/01 1.800 50,000,000.00 06/07/02 California Federal Bank 01/04/02 1.860 50,000,000.00 07/03/02 California Pacific Bank 12/28/01 1.740 2,000,000.00 03/28/02 California Pacific Bank 01/10/02 1.710 1,000,000.00 04/10/02 Oceanic Bank 03/15/01 4.430 4,000,000.00 03/15/02 Trans Pacific National Bank 03/19/01 4.250 800,000.00 03/19/02 United Commercial Bank 08/31/01 3.340 30,000,000.00 02/28/02 United Commercial Bank 04/04/01 4.160 30,000,000.00 04/04/02 United Commercial Bank 06/05/01 3.660 10,000,000.00 06/05/02 United Commercial Bank 12/14/01 1.810 25,000,000.00 06/05/02 United Commercial Bank 12/21/01 1.840 25,000,000.00 07/02/02 United Commercial Bank 07/31/01 3.480 40,000,000.00 07/31/02 SANJOSE Comerica Bank of California 12/04/01 1.840 63,000,000.00 03/04/02 Comerica Bank of California 01/09/02 1.730 71,000,000.00 04/09/02 Comerica Bank of California 10/30/01 2.170 183,000,000.00 02/06/02 Heritage Bank of Commerce 08/17/01 3.410 2,000,000.00 02/15/02 Meriwest Credit Union 08/10/01 3.490 5,000,000.00 02/06/02 Meriwest Credit Union 08/28/01 3.440 5,000,000.00 02/28/02 Meriwest Credit Union 12/20/01 1.860 5,000,000.00 06/18/02 Meriwest Credit Union 01/18/02 1.750 5,000,000.00 07/19/02 28 NAME SAN JOSE (continued) San Jose National Bank San Jose National Bank Santa Clara Co. Fed. C.U. SAN LUIS OBISPO TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 04/30/01 3.870 10,000,000.00 04/30/02 11/01/01 2.000 10,000,000.00 04/30/02 08/07/01 3.500 15,000,000.00 02/05/02 Mission Community Bank 09/10/01 3.250 1,000,000.00 03/08/02 Mission Community Bank 10/11/01 2.240 1,500,000.00 04/09/02 Mission Community Bank 12/21/01 1.720 1,000,000.00 04/09/02 Mission Community Bank 12/10/01 1.840 1,000,000.00 06/11/02 San Luis Trust Bank 10/26/01 2.130 1,000,000.00 04/24/02 San Luis Trust Bank 01/08/02 1.840 1,350,000.00 07/11/02 SAN MARINO East West Federal Bank 08/02/01 3.560 35,000,000.00 02/07/02 East West Federal Bank 11/16/01 1.900 38,000,000.00 05/15/02 East West Federal Bank 11/28/01 2.080 35,000,000.00 06/10/02 East West Federal Bank 01/04/02 1.860 42,000,000.00 07/09/02 SAN RAFAEL Metro Commerce Bank 11/28/01 2.070 1,800,000.00 05/30/02 Westamerica Bank 11/09/01 1.840 50,000,000.00 02/07/02 Westamerica Bank 12/19/01 1.730 25,000,000.00 03/19/02 Westamerica Bank 01/09/02 1.700 50,000,000.00 04/09/02 Westamerica Bank 07/18/01 3.510 25,000,000.00 07/18/02 Westamerica Bank 07/30/01 3.490 50,000,000.00 07/30/02 SAN RAMON EBTEL Federal Credit Union EBTEL Federal Credit Union EBTEL Federal Credit Union SANTA BARBARA FNB of Central California FNB of Central California FNB of Central California FNB of Central California FNB of Central California 08/17/01 3.440 750,000.00 02/13/02 11/14/01 1.880 1,000,000.00 02/14/02 01 /02/02 1.840 1,000,000.00 07/01 /02 09/12/01 3.220 10,000,000.00 03/11/02 10/12/01 2.280 10,000,000.00 04/10/02 11/30/01 1.860 10,000,000.00 06/03/02 12/20/01 1.840 10,000,000.00 06/14/02 01/25/02 1.810 15,000,000.00 07/25/02 mc NAME SANTA BARBARA (continued Santa Barbara Bank & Trust Santa Barbara Bank & Trust Santa Barbara Bank & Trust Santa Barbara Bank & Trust Santa Barbara Bank & Trust Santa Barbara Bank & Trust Santa Barbara Bank & Trust SANTA CLARITA Valencia Bank & Trust SANTA MARIA Hacienda Bank SANTA ROSA National Bank of the Redwoods National Bank of the Redwoods Redwood Credit Union Redwood Credit Union SONORA Central California Bank ,�>t�Z4i,�1i Pacific State Bank Pacific State Bank Service 1st Bank Union Safe Deposit Bank Union Safe Deposit Bank Union Safe Deposit Bank Union Safe Deposit Bank Union Safe Deposit Bank Union Safe Deposit Bank Washington Mutual Bank Washington Mutual Bank Washington Mutual Bank Washington Mutual Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 07/27/01 3.560 6,000,000.00 02/08/02 07/27/01 3.560 10,000,000.00 02/08/02 10/01/01 2.400 10,000,000.00 04/02/02 11 /01 /01 2.000 10,000,000.00 05/01 /02 11/30/01 1.850 20,000,000.00 06/03/02 12/20/01 1.830 20,000,000.00 06/14/02 01/25/02 1.800 30,000,000.00 07/25/02 09/17/01 3.000 4,000,000.00 03/19/02 09/11/01 3.260 1,000,000.00 03/11/02 10/29/01 2.140 10,000,000.00 04/26/02 01/28/02 1.860 5,000,000.00 07/26/02 11/30/01 1.900 17,000,000.00 02/28/02 12/28/01 1.840 8,000,000.00 06/24/02 12/03/01 1.830 1,000,000.00 03/04/02 10/12/01 2.260 1,000,000.00 04/10/02 01/08/02 1.850 1,000,000.00 07/02/02 01 /31 /02 1.780 2,000,000.00 05/01 /02 01/23/02 1.820 15,000,000.00 07/25/02 08/07/01 3.520 10,000,000.00 02/14/02 08/22/01 3.420 10,000,000.00 03/01/02 10/11/01 2.270 10,000,000.00 04/11/02 11/05/01 2.020 10,000,000.00 05/07/02 12/11/01 1.830 10,000,000.00 06/12/02 11/28/01 2.000 30,000,000.00 02/19/02 08/23/01 3.390 30,000,000.00 02/19/02 12/21/01 1.830 15,000,000.00 06/17/02 12/10/01 1.820 30,000,000.00 06/17/02 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE STOCKTON (continued Washington Mutual Bank 01/24/02 1.770 60,000,000.00 07/23/02 SUNNYVALE Asiana Bank 12/20/01 1.750 1,500,000.00 03/21/02 TORRANCE China Trust Bank (USA) 11/16/01 1.920 20,000,000.00 02/15/02 China Trust Bank (USA) 12/14/01 1.740 25,000,000.00 03/14/02 China Trust Bank (USA) 01/18/02 1.650 30,000,000.00 04/18/02 China Trust Bank (USA) 12/19/01 1.850 10,000,000.00 06/18/02 South Bay Bank 06/07/01 3.620 3,000,000.00 03/01/02 South Bay Bank 09/06/01 3.430 5,000,000.00 03/15/02 South Bay Bank 11/20/01 2.040 2,000,000.00 03/20/02 South Bay Bank 11/08/01 1.780 4,000,000.00 05/07/02 South Bay Bank 01/25/02 1.830 1,000,000.00 07/24/02 1i 14tI ; First Fidelity Investment & Loan 11/06/01 2.030 6,000,000.00 02/07/02 First Fidelity Investment & Loan 11/02/01 2.070 9,000,000.00 02/07/02 First Fidelity Investment & Loan 12/05/01 1.770 15,000,000.00 03/05/02 First Fidelity Investment & Loan 01/15/02 1.610 10,000,000.00 04/16/02 Sunwest Bank 11/06/01 2.020 2,000,000.00 02/08/02 Sunwest Bank 11/01/01 2.080 5,800,000.00 02/08/02 Sunwest Bank 12/07/01 1.770 1,000,000.00 03/08/02 Sunwest Bank 01/09/02 1.700 3,500,000.00 04/09/02 Sunwest Bank 01/25/02 1.730 2,500,000.00 04/26/02 VACAVILLE Travis Credit Union 11/30/01 1.910 40,000,000.00 02/28/02 WATSONVILLE Monterey Bay Bank 09/20/01 2.390 8,000,000.00 03/20/02 Monterey Bay Bank 12/17/01 1.840 3,000,000.00 06/17/02 Monterey Bay Bank 01/07/02 1.860 8,000,000.00 07/10/02 31 NAME WHITTIER TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE Quaker City Bank 10/16/01 2.280 8,000,000.00 04/05/02 Quaker City Bank 04/06/01 4.000 8,000,000.00 04/05/02 Quaker City Bank 11/27/01 2.080 25,000,000.00 05/24/02 Quaker City Bank 12/28/01 1.830 10,000,000.00 07/12/02 Quaker City Bank 01/08/02 1.860 14,000,000.00 07/12/02 TOTAL TIME DEPOSITS JANUARY 2002 5,151,795,000.00 32 BANK DEMAND DEPOSITS JANUARY 2002 ($ in thousands) DAILY BALANCES DAY OF BALANCES WARRANTS MONTH PER BANKS OUTSTANDING 1 $ 586,999 $ 3,108,957 2 1,373,307 2,514,040 3 593,767 2,307,677 4 623,103 2,091,886 5 623,103 2,091,886 6 623,103 2,091,886 7 1,190,012 1,988,495 8 697,744 1,986,917 9 664,101 2,151,852 10 916,224 2,377,392 11 828,097 2,249,916 12 828,097 2,249,916 13 828,097 2,249,916 14 632,209 1,875,734 15 573,511 2,345,508 16 482,503 2,239,034 17 893,311 2,274,480 18 1,124,418 2,836,712 19 1,124,418 2,836,712 20 1,124,418 2,836,712 21 1,124,418 2,836,712 22 464,147 2,181,788 23 425,535 2,050,446 24 198,024 1,832,913 25 556,549 1,774,965 26 556,549 1,774,965 27 556,549 1,774,965 28 434,794 2,111,193 29 612,964 1,839,806 30 473,025 1,949, 807 31 588,172 2,659,805 AVERAGE DOLLAR DAYS $ 720,041 a/ a� The prescribed bank balance for January was $790,151. This consisted of $573,084 in compensating balances for services, balances for uncollected funds of $225,628 and a deduction of $8,561 for January delayed deposit credit. 33 DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1631 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on January 16, 2002, has determined and designated the amount of money available for deposit and investment under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code, it is the intent that the money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management, and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ- actions, and for investment in securities and the type of such deposits and investments as follows: 1. In accordance with law, for deposit in demand bank accounts as Compensating Balance for Services $ 573,084,000 The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in such a manner as to realize the maximum return consistent with safe and prudent treasury management. 2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest - bearing deposits in banks and savings and loan associations as follows: From To _ ( 1) 1 /14/2002 1 / 18/2002 $ (2) 1/21/2002 1/25/2002 $ (3) 1/28/2002 2/1/2002 $ (4) 2/4/2002 2/8/2002 $ (5) 2/11/2002 2/15/2002 $ (6) 2/18/2002 2/22/2002 $ Transactions 1,595,400,000 381,500,000 (2,007,800,000) 502,400,000 308,600,000 493,100,000 Time Deposits in Various Financial Institutions In Securities (sections 16503a Estimated (section 16430)' and 16602)' Total $ 47,693,205,000 $ 5,089,795,000 $ 52,783,000,000 $ 48,074,705,000 $ 5,089,795,000 $ 53,164,500,000 $ 46,066,905,000 $ 5,089,795,000 $ 51,156,700,000 $ 46,569,305,000 $ 5,089,795,000 $ 51,659,100,000 $ 46,877,905,000 $ 5,089,795,000 $ 51,967,700,000 $ 47,371,005,000 $ 5,089,795,000 $ 52,460,800,000 From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e), Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the amounts and for the same types of investments as specifically designated above. Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $ 573,084,000. POOLED MONEY INVESTMENT BOARD: (SIGNATURES ON FILE AT SCO & STO) Chairperson Member Dated: January 16, 2002 Government Code Member I �R Philip Angelides .�-Trea4suFrer S t-are of�h aliforni a, YJ e� r February 2002 STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT FEBRUARY 2002 TABLE OF CONTENTS SUMMARY................................................................. 1 SELECTED INVESTMENT DATA ................................... 2 PORTFOLIO COMPOSITION ......................................... 3 INVESTMENT TRANSACTIONS ..................................... 4 TIMEDEPOSITS........................................................ 18 BANK DEMAND DEPOSITS .......................................... 32 POOLED MONEY INVESTMENT BOARD DESIGNATION ... 33 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF FEBRUARY 2002 WITH FEBRUARY 2001 (DOLLARS IN THOUSANDS) FEBRUA* RY:2002 : FEBRUARY 2001 . >CHANGE Average Dail Portfolio $ 52,435,059 $ 48,030,117 +4,404,942 9 Y Accrued Earnings $ 119,339 $ 227,302-107,963 Effective Yield 2.967 6.169 -3.202 Average Life -Month End (In Days) 185 194 -9 1 Total Security Transactions Amount $ 21,968,939 $ 22,066,969 -98,030 Number 483 470 +13 Total Time Deposit Transactions Amount $ 2,309,100 $ 1,726,500 +582,600 Number 146 123 +23 Average Workday Investment Activity $ 1,348,780 $ 1,321,859 +26,921 Prescribed Demand Account Balances For Services $ 607,025 $ 208,955 +398,070 For Uncollected Funds $ 66,399 $ 268,634 -202,235 PHILIP ANGELIDES TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) February 28, 2002 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH Government Bills $ 1,089,434 2.15 -.59 Bonds 0 0.00 0.00 Notes 5,695,780 11.26 +1.15 Strips 0 0.00 0.00 Total Government $ 6,785,214 13.41 +.56 Federal Agency Coupons $ 4,814,489 9.52 -.03 Certificates of Deposit 5,910,095 11.68 -.07 Bank Notes 1,015,006 2.01 -.12 Bankers' Acceptances 17,877 0.03 0.00 Repurchases 0 0.00 0.00 Federal Agency Discount Notes 11,962,667 23.64 +1.19 Time Deposits 5,203,795 10.29 +.46 GNMAs 841 0.00 0.00 Commercial Paper 9,991,351 19.75 -1.55 FHLMC 8,126 0.02 0.00 Corporate Bonds 2,444,444 4.83 +.18 Pooled Loans 3,048,302 6.02 +.03 GF Loans 0 0.00 0.00 Reversed Repurchases -606,437 -1.20 +.65 Total (All Types) $ 50,595,770 100.00 INVESTMENT ACTIVITY Pooled Money Other Time Deposits Totals PMIA Monthly Average Effective Yield Year to Date Yield Last Day of Month FEBRUARY 2002 NUMBER AMOUNT 483 $ 21,968,939 13 25,148 146 2,309,100 642 $ 24,303,187 2.967 3.760 2 JANUARY 2002 NUMBER AMOUNT 503 $ 23,466,004 4 1,042 152 1,951,700 659 $ 25,418,746 3.068 3.867 Commercial Paper 19.75% Bankers Acceptance: 0.03% Time C 10.: Pooled Money Investment Account Portfolio Composition $50.6 Billion Reverses Loans A -20% Treasuries Corporate 6.02% 1 *1 d1 0/ C D's/B N's 13.69% jages 2% Agencies 33.16% 2/28/02 8 Treasuries 0 Mortgages Agencies 0 CD's/BN's ■ Time Deposits El Bankers Acceptances ■ Repo Commercial Paper ® Corporate Bonds ❑ Loans Reverses POOLED MONEY INVESTMENT ACCOUNT sv w a/ MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD LM f1ELQ EBBNEQ YIELD 02/01/02 RRS TREAS NOTES 4.750% 02/15/04 1.320 $ 50,000 TREAS NOTES 4.750% 02/15/04 1.320 50,000 TREAS NOTES 5.250% 05/15/04 1.350 50,000 TREAS NOTES 5.250% 05/15/04 1.350 50,000 REDEMPTIONS BN W/F 2.090% 02/01/02 2.090 50,000 92 267,055.56 2.119 BN W/F 2.090% 02/01/02 2.090 50,000 92 267,055.56 2.119 CP SALOMON 02/01/02 1.710 50,000 14 33,250.00 1.734 CP SALOMON 02/01/02 1.710 50,000 14 33,250.00 1.734 CP FCAR 02/01/02 1.670 25,000 15 17,395.83 1.694 CP FCAR 02/01/02 1.670 50,000 15 34,791.67 1.694 CP CONAGRA 02/01/02 1.850 25,000 18 23,125.00 1.877 CP FCAR 02/01/02 1.850 50,000 39 100,208.33 1.879 CP FCAR 02/01/02 1.850 50,000 39 100,208.33 1.879 CP CAMPBELL 02/01/02 2.100 25,000 85 123,958.33 2.139 CP GMAC 02/01/02 2.850 50,000 109 431,458.33 2.914 CP GMAC 02/01/02 2.850 50,000 109 431,458.33 2.914 CP FCAR 02/01/02 2.290 32,800 115 239,941.11 2.338 CP FCAR 02/01/02 2.290 50,000 115 365,763.89 2.338 CP SRAC 02/01/02 3.000 50,000 120 500,000.00 3.072 CP SRAC 02/01/02 3.000 50,000 120 500,000.00 3.072 CP GOLDMAN 02/01/02 2.300 50,000 120 383,333.33 2.349 CP GOLDMAN 02/01/02 2.300 50,000 120 383,333.33 2.349 CP GECC 02/01/02 2.310 50,000 120 385,000.00 2.360 CP GECC 02/01/02 2.310 50,000 120 385,000.00 2.360 PURCHASESg/ CD HSBC 1.800% 05/01/02 1.800 50,000 CD HSBC 1.800% 05/01/02 1.800 50,000 CD CHASE 1.800% 05/01/02 1.800 50,000 CD CHASE 1.800% 05/01/02 1.800 50,000 PURCHASES CP CONAGRA 02/20/02 2.020 30,000 CP SRAC 02/13/02 2.120 50,000 CP GMAC 02/20/02 2.100 50,000 CP GMAC 02/20/02 2.100 50,000 CP CONAGRA 02/28/02 2.010 20,000 CP SAFEWAY 06/28/02 2.150 50,000 02/04/02 REDEMPTIONS CP SALOMON 02/04/02 1.820 50,000 5 12,638.89 1.845 CP SALOMON 02/04/02 1.820 50,000 5 12,638.89 1.845 4 CP SRAC 05/06/02 2.210 50,000 CP BEAR 06/10/02 1.840 50,000 CP BEAR 06/10/02 1.840 50,000 CP HOUSEHOLD 06/28/02 1.830 50,000 CP HOUSEHOLD 06/28/02 1.830 50,000 DISC NOTES FNMA 06/28/02 1.780 50,000 02/05/02 SALES TREAS NOTES 6.500% 03/31/02 1.709 50,000 651 5,717,968.09 6.376 TREAS NOTES 6.500% 03/31/02 1.709 50,000 651 5,717,968.09 6.376 REDEMPTIONS CP SALOMON 02/05/02 1.810 50,000 7 17,597.22 1.835 CP TEXT FIN 02/05/02 2.050 50,000 7 19,930.56 2.079 CP TEXT FIN 02/05/02 2.050 40,000 8 18,222.22 2.079 CP CONAGRA 02/05/02 1.880 50,000 12 31,333.33 1.907 PURCHASES CP CONAGRA 02/11/02 2.020 35,000 CP KODAK 04/02/02 2.250 50,000 CP GECC 06/10/02 1.820 50,000 CP GECC 06/10/02 1.820 50,000 CP FCAR 06/10/02 1.820 50,000 CP FCAR 06/10/02 1.820 50,000 CP SAFEWAY 06/28/02 2.120 35,000 CP NCAT 07/01/02 1.820 50,000 CP NCAT 07/01/02 1.820 50,000 MTN B/A 6.625% 06/15/04 3.810 10,000 MTN B/A 6.625% 06/15/04 3.810 20,000 02/06/02 RRS TREAS NOTES 5.250% 05/15/04 1.250 50,000 TREAS NOTES 5.250% 05/15/04 1.250 50,000 PURCHASES cL/ CP JP MORGAN 03/08/02 1.750 5,000 CP JP MORGAN 03/08/02 1.750 50,000 CP JP MORGAN 03/08/02 1.750 50,000 PURCHASES CP TEXT FIN 02/20/02 2.060 45,558 5 POOLED MONEY ,INVESTMENT ACCOUNT a/ Al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTIO 26M I YIELD LQ4!?1 k= EARNE YIELD 02/06/02 PURCHASES (continued) CP CITICORP 02/28/02 _ 1.800 50,000 CP CITICORP 02/28/02 1.800 50,000 CP COUNTRY 03/08/02 1.820 50,000 02/07/02 REDEMPTIONS MTN GMAC 6.750% 02/07/02 6.726 7,250 458 612,092.49 6.727 PURCHASES CP HOUSEHOLD 02/13/02 1.730 20,000 CP HOUSEHOLD 02/13/02 1.730 50,000 CP HOUSEHOLD 02/13/02 1.730 50,000 CP GECC 02/14/02 1.750 50,000 CP DISNEY 02/19/02 2.100 50,000 CP DISNEY 02/20/02 2.100 50,000 CP SALOMON 03/20/02 1.780 50,000 CP SALOMON 03/20/02 1.780 50,000 CP SALOMON 03/20/02 1.780 50,000 CP SALOMON 03/20/02 1.780 50,000 CP JP MORGAN 04/09/02 1.770 50,000 CP JP MORGAN 04/09/02 1.770 50,000 CP JP MORGAN 05/08/02 1.780 50,000 CP JP MORGAN 05/08/02 1.780 50,000 DISC NOTES FNMA 06/28/02 1.760 32,746 DISC NOTES FNMA 06/28/02 1.760 50,000 02/08/02 REDEMPTIONS CD HYPO 2.040% 02/08/02 2.040 50,000 94 266,333.33 2.068 CD DEUTSCHE 2.030% 02/08/02 2.030 25,000 95 133,923.61 2.058 CD DEUTSCHE 2.030% 02/08/02 2.030 50,000 95 267,847.22 2.058 CD CR AGRIC 2.030% 02/08/02 2.030 50,000 95 267,847.22 2.058 CD SOC GEN 2.250% 02/08/02 2.250 50,000 121 378,125.00 2.281 CD SOC GEN 2.250% 02/08/02 2.250 50,000 121 378,125.00 2.281 CD MONTREAL 2.260% 02/08/02 2.260 50,000 121 379,805.56 2.291 CD MONTREAL 2.260% 02/08/02 2.260 50,000 121 379,805.56 2.291 CD ABN AMRO 2.260% 02/08/02 2.255 50,000 122 382,103.64 2.286 CD ABN AMRO 2.260% 02/08/02 2.255 50,000 122 382,103.64 2.286 CD HELABA 2.400% 02/08/02 2.400 50,000 136 453,333.33 2.433 CD HELABA 2.400% 02/08/02 2.400 50,000 136 453,333.33 2.433 CD SOC,GEN 2.440% 02/08/02 2.440 50,000 136 460,888.89 2.473 CP FCAR 02/08/02 1.670 50,000 23 53,347.22 1.695 CP FCAR 02/08/02 1.670 50,000 23 53,347.22 1.695 CP FCAR 02/08/02 1.850 50,000 46 118,194.44 1.880 CP FCAR 02/08/02 1,850 50,000 46 118,194.44 1.880 CP GMAC 02/08/02 2.880 50,000 91 364,000.00 2.941 CP SRAC 02/08/02 3.050 40,000 116 393,111.11 3.123 C:1 POOLED MONEY INVESTMENT ACCOUNT sll =' Al MATURITY , TRANS PAR DAYS AMOUNT . EFFECTIVE DATE IYP� DESCRIPTION DATE YIELD tQ941 1tiELJ2, EARNED YIELD 02/08/02 REDEMPTIONS (continued) DISC NOTES FNMA 02/08/02 2.150 50,000 141 421,041.67 2.198 DISC NOTES FNMA 02/08/02 2.150 50,000 141 421,041.67 2.198 PURCHASES CID SAFEWAY 02/11/02 2.000 50,000 CID SRAC 02/19/02 2.000 50,000 02/11/02 SALES TREAS NOTES 6.500% 03/31/02 1.651 50,000 657 5,776,816.60 6.629 TREAS NOTES 6.500% 03/31/02 1.651 50,000 657 5,776,816.60 6.629 REDEMPTIONS CID SAFEWAY 02/11/02 2.000 50,000 3 8,333.33 2.028 CP CONAGRA 02/11/02 2.020 35,000 6 11,783.33 2.048 CID ASCC 02/11/02 1.740 50,000 31 74,916.67 1.766 CP ASCC 02/11/02 1.740 25,600 31 38,357.33 1.766 CID AMER EXP 02/11/02 2.100 50,000 108 315,000.00 2.142 CP GECC 02/11/02 2.280 15,000 119 113,050.00 2.329 CP GECC 02/11/02 2.280 50,000 119 376,833.33 2.329 CID GECC 02/11/02 2.280 50,000 119 376,833.33 2.329 CID GECC 02/11/02 2.310 50,000 130 417,083.33 2.361 CP GECC 02/11/02 2.310 50,000 130 417,083.33 2.361 MTN FR B/A 6.250% 02/11/02 6.229 5,000 691 498,323.10 5.220 MTN FR B/A 6.250% 02/11/02 5.133 50,000 1098 8,218,840.94 5.464 PURCHASES CD HYPO 1.820% 06/28/02 1.820 50,000 CD HYPO 1.820% 06/28/02 1.820 50,000 CD MONTREAL 1.800% 07/01/02 1.800 50,000 CD MONTREAL 1.800% 07/01/02 1.800 50,000 CD MONTREAL 1.800% 07/01/02 1.800 50,000 CID GECC 02/13/02 1.650 50,000 CID GECC 02/13/02 1.650 50,000 CID GECC 02/13/02 1.650 50,000 CID GECC 02/13/02 1.650 50,000 CID SALOMON 02/20/02 1.760 50,000 CID SALOMON 02/20/02 1.760 50,000 CID SALOMON 02/20/02 1.760 50,000 CID SALOMON 02/20/02 1.760 50,000 CID DISNEY 05/01/02 2.080 25,000 CP DISNEY 05/02/02 2.080 25,000 CID DISNEY 05/02/02 2.080 50,000 DISC NOTES FNMA 06/28/02 1.750 50,000 DISC NOTES FNMA 06/28/02 1.750 50,000 7 POOLED MONEY INVESTMENT ACCOUNT MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE IYEE DESCRIPTION DATE : YIELD ...« �L4Q41 , w. kLF, 2 EARNED _ YIELD 02/13/02 REDEMPTIONS CD WASHINGTON 2.030% 02/13/02 2.010 50,000 92 256,846.39 2.037 CD SOC GEN 2.250% 02/13/02 2.250 50,000 126 393,750.00 2.281 CD SOC GEN 2.250% 02/13/02 2.250 50,000 126 393,750.00 2.281 CP GECC 02/13/02 1.650 50,000 2 4,583.33 1.673 CP GECC 02/13/02 1.650 50,000 2 4,583.33 1.673 CP GECC 02/13/02 1.650 50,000 2 4,583.33 1.673 CP GECC 02/13/02 1.650 50,000 2 4,583.33 1.673 CP HOUSEHOLD 02/13/02 1.730 20,000 6 5,766.67 1.754 CP HOUSEHOLD 02/13/02 1.730 50,000 6 14,416.67 1.754 CP HOUSEHOLD 02/13/02 1.730 50,000 6 14,416.67 1.754 CP SRAC 02/13/02 2.120 50,000 12 35,333.33 2.150 CP GECC 02/13/02 1.770 50,000 14 34,416.67 1.795 CP GECC 02/13/02 1.770 50,000 14 34,416.67 1.795 CP AMER EXP 02/13/02 1.730 50,000 15 36,041.67 1.755 CP AMER EXP 02/13/02 1.730 50,000 15 36,041.67 1.755 CP NCAT 02/13/02 1.780 50,000 15 37,083.33 1.806 CP NCAT 02/13/02 1.780 50,000 15 37,083.33 1.806 CP NCAT 02/13/02 1.780 50,000 15 37,083.33 1.806 CP NCAT 02/13/02 1.780 50,000 15 37,083.33 1.806 CP SALOMON 02/13/02 1.790 50,000 15 37,291.67 1.816 CP SALOMON 02/13/02 1.790 50,000 15 37,291.67 1.816 CP FCAR 02/13/02 1.800 50,000 15 37,500.00 1.826 CP FCAR 02/13/02 1.800 50,000 15 37,500.00 1.826 CP COUNTRY 02/13/02 1.850 50,000 15 38,541.67 1.877 CP COUNTRY 02/13/02 1.850 50,000 15 38,541.67 1.877 CP FCAR 02/13/02 1.860 50,000 92 237,666.67 1.894 CP FCAR 02/13/02 1.860 50,000 92 237,666.67 1.894 CP BEAR 02/13/02 2.070 10,000 105 60,375.00 2.111 CP BEAR 02/13/02 2.070 50,000 105 301,875.00 2.111 CP BEAR 02/13/02 2.140 50,000 107 318,027.78 2.183 CP BEAR 02/13/02 2.140 50,000 107 318,027.78 2.183 CP AMER EXP 02/13/02 2.100 50,000 110 320,833.33 2.142 CP FCAR 02/13/02 2.300 50,000 119 380,138.89 2.349 CP GOLDMAN 02/13/02 2.420 10,000 138 92,766.67 2.476 CP GOLDMAN 02/13/02 2.420 50,000 138 463,833.33 2.476 CP GOLDMAN 02/13/02 2.420 50,000 138 463,833.33 2.476 DISC NOTES FHLB 02/13/02 1.680 5,318 14 3,474.43 1.703 DISC NOTES FHLB 02/13/02 1.680 50,000 14 32,666.67 1.703 DISC NOTES FHLB 02/13/02 1.680 50,000 14 32,666.67 1.703 02/13/02 RRP TREAS NOTES TREAS NOTES PURCHASES CP W/F 5.250% 05/15/04 1.250 50,000 5.250% 05/15/04 1.250 50,000 03/04/02 1.740 50,000 14 (25,581.60) -1.300 14 (25,581.60) -1.300 POOLED MONEY INVESTMENT ACCOUNT a/ MATURITY TRANS,', PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD, L4941, „...ff= EARNE YIELD 02/13/02 PURCHASES (continued) CID W/F 03/04/02 1.740 50,000 CID NCAT 03/04/02 1.780 50,000 CID NCAT 03/04/02 1.780 50,000 CID NCAT 03/04/02 1.780 50,000 CID NCAT 03/04/02 1.780 50,000 CID GECC 03/04/02 1.780 50,000 CID GECC 03/04/02 1.780 50,000 CID AMER EXP 03/04/02 1.760 50,000 CID AMER EXP 03/04/02 1.760 50,000 CID AMER EXP 03/05/02 1.760 50,000 CID AMER EXP 03/05/02 1.760 50,000 CID SRAC 03/06/02 2.200 50,000 CID HOUSEHOLD 03/08/02 1.770 25,000 CID HOUSEHOLD 03/08/02 1.770 50,000 CID HOUSEHOLD 03/08/02 1.770 50,000 CID SAFEWAY 03/08/02 2.000 50,000 CID DISNEY 04/09/02 2.060 50,000 CID DISNEY 04/10/02 2.060 50,000 MTN FMCC 6.550% 09/10/02 3.749 17,630 TREAS NOTES 3.000% 01/31/04 3.090 50,000 TREAS NOTES 3.000% 01/31/04 3.090 50,000 02/14/02 REDEMPTIONS CID GECC 02/14/02 1.750 50,000 7 17,013.89 1.774 PURCHASES CID HOUSEHOLD 02/28/02 1.760 50,000 CP HOUSEHOLD 02/28/02 1.760 50,000 DISC NOTES FNMA 06/28/02 1.770 50,000 DISC NOTES FNMA 06/28/02 1.770 50,000 TREAS NOTES 7.250% 05/15/04 3.270 50,000 TREAS NOTES 7.250% 05/15/04 3.270 50,000 02/15/02 REDEMPTIONS FHLB 6.750% 02/15/02 6.204 11,000 437 820,092.24 6.189 FHLB 6.750% 02/15/02 6.204 50,000 437 3,727,692.00 6.189 FHLB 6.750% 02/15/02 5.140 50,000 478 2,792,250.00 5.114 FHLB 6.750% 02/15/02 7.016 50,000 687 6,564,625.00 7.008 FHLB 6.750% 02/15/02 7.020 25,000 688 3,289,000.00 7.013 PURCHASES CID FCAR 03/11/02 1.810 10,000 CID FCAR 03/11/02 1.810 50,000 CID GMAC 03/11/02 2.200 50,000 9 POOLED MONEY INVESTMENT ACCOUNTS �! ILI MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE 2AM _;jYPE DESCRIPTION DATE_ YIELD . _ L44.41 t1= EABNEQ YIELD 02/15/02 PURCHASES (continued) CP GECC 03/11/02 1.780 50,000 CP GECC 03/11/02 1.780 50,000 CP GECC 03/11/02 1.780 50,000 CP GECC 03/11/02 1.780 50,000 CP KODAK 03/20/02 2.500 40,000 CP SALOMON 04/02/02 1.790 50,000 CP SALOMON 04/02/02 1.790 50,000 DISC NOTES FHLMC 06/28/02 1.760 50,000 02/19/02 REDEMPTIONS CP SRAC 02/19/02 2.000 50,000 11 30,555.56 2.029 CP DISNEY 02/19/02 2.100 50,000 12 35,000.00 2.130 CP AMER EXP 02/19/02 1.730 50,000 21 50,458.33 1.755 CP AMER EXP 02/19/02 1.730 50,000 21 50,458.33 1.755 PURCHASES CD MONTREAL 1.790% 03/11/02 1.790 50,000 CD MONTREAL 1.790% 03/11/02 1.790 50,000 CD TORONTO 1.780% 03/19/02 1.770 50,000 CD TORONTO 1.780% 03/19/02 1.770 50,000 CD W/F 1.780% 03/20/02 1.780 50,000 CD W/F 1.780% 03/20/02 1.780 50,000 CP AMER EXP 03/11/02 1.770 50,000 CP AMER EXP 03/11/02 1.770 50,000 CP HOUSHOLD 03/11/02 1.780 50,000 CP SRAC 03/11/02 2.200 50,000 CP DISNEY 05/01/02 2.070 50,000 CP DISNEY 05/02/02 2.070 50,000 02/20/02 REDEMPTIONS CP SALOMON 02/20/02 1.760 50,000 9 22,000.00 1.785 CP SALOMON 02/20/02 1.760 50,000 9 22,000.00 1.785 CP SALOMON 02/20/02 1.760 50,000 9 22,000.00 1.785 CP SALOMON 02/20/02 1.760 50,000 9 22,000.00 1.785 CP DISNEY 02/20/02 2.100 50,000 13 37,916.67 2.130 CP TEXT FIN 02/20/02 2.060 45,558 14 36,497.02 2.090 CP CONAGRA 02/20/02 2.020 30,000 19 31,983.33 2.050 CP GMAC 02/20/02 2.100 50,000 19 55,416.67 2.131 CP GMAC 02/20/02 2.100 50,000 19 55,416.67 2.131 CP DOW 02/20/02 1.830 5,000 21 5,337.50 1.857 CP CONAGRA 02/20/02 1.980 29,950 21 34,592.25 2.009 CP DOW 02/20/02 1.830 50,000 21 53,375.00 1.857 CP DOW 02/20/02 1.830 50,000 21 53,375.00 1.857 CP GECC 02/20/02 1.770 50,000 21 51,625.00 1.796 CP GECC 02/20/02 1.770 50,000 21 51,625.00 1.796 10 POOLED MONEY INVESTMENT ACCOUNT &V �l Al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE _ TYPE DESCRIPTION DATE YIELD LM HELD EARNED YIELD 02/20/02 REDEMPTIONS (continued) CID W/F 02/20/02 1.760 50,000 21 51,333.33 1.786 CID W/F 02/20/02 1.760 50,000 21 51,333.33 1.786 CID W/F 02/20/02 1.760 50,000 21 51,333.33 1.786 CID W/F 02/20/02 1.760 50,000 21 51,333.33 1.786 CID W/F 02/20/02 1.760 50,000 21 51,333.33 1.786 CID W/F 02/20/02 1.760 50,000 21 51,333.33 1.786 CID FCAR 02/20/02 1.800 50,000 22 55,000.00 1.827 CID SRAC 02/20/02 2.130 50,000 22 65,083.33 2.162 CID COUNTRY 02/20/02 1.810 35,000 23 40,473.61 1.837 CID COUNTRY 02/20/02 1.810 50,000 23 57,819.44 1.837 PURCHASES CID HOUSEHOLD 03/13/02 1.770 50,000 CID HOUSEHOLD 03/13/02 1.770 50,000 CID SRAC 03/27/02 2.230 50,000 CID FCAR 04/02/02 1.800 35,000 CID FCAR 04/02/02 1.800 50,000 CID GMAC 04/02/02 2.230 50,000 CID GMAC 04/02/02 2.230 50,000 CID DISNEY 05/01/02 2.070 25,000 CID CAMPBELL 05/20/02 1.900 25,000 DISC NOTES FHLMC 06/28/02 1.750 50,000 DISC NOTES FHLMC 06/28/02 1.750 50,000 TREAS NOTES 7.250% 05/15/04 3.116 50,000 TREAS NOTES 7.250% 05/15/04 3.116 50,000 TREAS NOTES 7.250% 05/15/04 3.135 50,000 TREAS NOTES 7.250% 05/15/04 3.135 50,000 02/21/02 RRS TREAS NOTES 5.250% 05/15/04 1.350 50,000 TREAS NOTES 5.250% 05/15/04 1.350 50,000 REDEMPTIONS CD ABN AMRO 1.880% 02/21/02 1.870 50,000 105 272,716.25 1.895 CD ABN AMRO 1.880% 02/21/02 1.870 50,000 105 272,716.25 1.895 CD BN PARIS 1.875% 02/21/02 1.870 50,000 105 272,712.29 1.895 CD BN PARIS 1.875% 02/21/02 1.870 50,000 105 272,712.29 1.895, CD BAYER LNDS 1.880% 02/21/02 1.870 50,000 105 272,716.25 1.895 CD BAYER LNDS 1.880% 02/21/02 1.870 50,000 105 272,716.25 1.895 CID BEAR 02/21/02 2.090 20,000 112 130,044.44 2.132 CID BEAR 02/21/02 2.090 50,000 112 325,111.11 2.132 PURCHASES g/ CD CHASE 1.800% 05/15/02 1.800 5,000 11 POOLED MONEY INVESTMENT ACCOUNT PURCHASES CP CAMPBELL 02/22/02 1.780 15,000 CP AMER HOME 02/22/02 1.800 50,000 CP AMER HOME 02/22/02 1.800 50,000 CP TEXT FIN 03/06/02 2.130 25,000 DISC NOTES FHLMC 06/28/02 1.760 5,837 DISC NOTES FHLMC 06/28/02 1.760 35,000 DISC NOTES FHLMC 06/28/02 1.760 50,000 DISC NOTES FHLMC 06/28/02 1.760 50,000 DISC NOTES FHLMC 06/28/02 1.760 50,000 DISC NOTES FHLMC 06/28/02 1.760 50,000 TREAS NOTES 7.250% 05/15/04 3.134 50,000 TREAS NOTES 7.250% 05/15/04 3.134 50,000 TREAS NOTES 7.250% 05/15/04 3.134 50,000 TREAS NOTES 7.250% 05/15/04 3.134 50,000 PURCHASES c/ TREAS NOTES 5.750% 10/31/02 1.750 47,785 TREAS NOTES 5.750% 10/31/02 1.750 50,000 02/22/02 SALES c/ TREAS TREAS REDEMPTIONS CP CP CP DISC NOTES SALES TREAS TREAS PURCHASES NOTES 5.750% 10/31/02 1.750 47,785 1 2,375.48 1.774 NOTES 5.750% 10/31/02 1.750 50,000 1 2,485.63 1.774 CAMPBELL 02/22/02 1.780 15,000 1 741.67 1.804 AMER HOME 02/22/02 1.800 50,000 1 2,500.00 1.825 AMER HOME 02/22/02 1.800 50,000 1 2,500.00 1.825 FNMA 02/22/02 3.940 48,000 304 1,597,013.33 4.132 NOTES 6.500% 03/31/02 1.683 50,000 668 5,873,963.34 6.412 NOTES 6.500% 03/31/02 1.683 50,000 668 5,873,963.34 6.412 CD BAYER LNDS 1.770% 03/27/02 1.770 50,000 CD BAYER LNDS 1.770% 03/27/02 1.770 50,000 CD HELABA 1.818% 06/28/02 1.820 50,000 CD HELABA 1.818% 06/28/02 1.820 50,000 12 y_ POOLED MONEY INVESTMENT ACCOUNT MATURITY " TRANS. °� PAR DAYS AMOUNTEFFECTIVE DATE - 7�(PE DESCRIPTION �AIFa;..; YIELD ::L44Q1 1:,.. t1ELL2. EARNS _-YIELD - 02/22/02 PURCHASES (continued) CP DEERE 03/11/02 1.870 50,000 CP DEERE 03/11/02 1.870 50,000 CP GECC 03/11/02 1.780 50,000 CP GECC 03/11/02 1.780 50,000 CP GECC 03/12/02 1.780 50,000 CP GECC 03/12/02 1.780 50,000 CP W/F 03/12/02 1.750 50,000 CP W/F 03/12/02 1.750 50,000 CP W/F 03/12/02 1.750 50,000 CP W/F 03/12/02 1.750 50,000 CP DOW 03/27/02 1.830 20,000 CP GECC 04/02/02 1.790 50,000 CP GECC 04/02/02 1.790 50,000 CP GECC 04/02/02 1.790 50,000 CP GECC 04/02/02 1.790 50,000 PURCHASES c/ TREAS NOTES 5.250% 08/15/03 1.710 17,000 TREAS NOTES 5.250% 08/15/03 1.710 50,000 TREAS NOTES 6.750% 05/15/05 1.710 2,118 TREAS NOTES 6.500% 08/15/05 1.710 8,900 02/25/02 NO REDEMPTIONS PURCHASES CD BN PARIS 1.870% 07/29/02 1.860 25,000 CD HSBC 1.880% 07/29/02 1.880 50,000 CD HSBC 1.880% 07/29/02 1.880 50,000 CP FCAR 03/11/02 1.800 5,000 CP FCAR 03/11/02 1.800 50,000 CP DEERE 03/12/02 1.870 20,000 CP MORG STAN 04/02/02 1.780 50,000 CP MORG STAN 04/02/02 1.780 50,000 CP MORG STAN 04/02/02 1.780 50,000 CP MORG STAN 04/02/02 1.780 50,000 CP ASCC 05/13/02 1.790 30,000 CP ASCC 05/13/02 1.790 50,000 CP GECC 07/29/02 1.880 50,000 CP GECC 07/29/02 1.880 50,000 MTN GECC 4.250% 01/28/05 4.047 20,000 02/26/02 SALES c/ TREAS NOTES 5.250% 08/15/03 1.710 17,000 4 3,287.19 1.733 TREAS NOTES 5.250% 08/15/03 1.710 50,000 4 9,668.72 1.733 TREAS NOTES 6.750% 05/15/05 1.710 2,118 4 438.14 1.733 13 POOLED D . ,MON... _ EY _,, ,INVESTMENT AC , . _ COUNT., e.... it/ MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE DESCRIPTION DATE YIELD LM 10.2 EARNED YIELD 02/26/02 SALES c/ (continued) TREAS NOTES 6.500% 08/15/05 1.710 8,900 NO PURCHASES 02/27/02 NO SALES PURCHASES CP NCAT 02/28/02 1.800 15,000 CP DISNEY 02/28/02 2.070 18,000 CP NCAT 02/28/02 1.800 50,000 CP GECC 02/28/02 1.750 50,000 CP GECC 02/28/02 1.750 50,000 CP GECC 02/28/02 1.750 50,000 CP GECC 02/28/02 1.750 50,000 CP SALOMON 02/28/02 1.810 50,000 CP SALOMON 02/28/02 1.810 50,000 CP SALOMON 02/28/02 1.810 50,000 CP SALOMON 02/28/02 1.810 50,000 CP CITICORP 03/11/02 1.800 50,000 CP CITICORP 03/11/02 1.800 50,000 CP CITICORP 03/11/02 1.800 50,000 CP CITICORP 03/11/02 1.800 50,000 CP GEN MILLS 04/02/02 2.060 35,000 CP MORG STAN 05/06/02 1.810 15,000 CP MORG STAN 05/06/02 1.810 50,000 CP MORG STAN 05/06/02 1.810 50,000 DISC NOTES FHLMC 02/28/02 1.740 50,000 DISC NOTES FHLMC 02/28/02 1.740 50,000 DISC NOTES FHLMC 02/28/02 1.740 50,000 DISC NOTES FHLMC 02/28/02 1.740 50,000 MTN FMCC 7.500% 01/15/03 4.426 20,000 PURCHASES c/ TREAS NOTES TREAS NOTES 02/28/02 SALES 3.625% 08/31/03 1.770 48,851 3.625% 08/31/03 1.770 50,000 4 1,805.95 1.733 TREAS BILLS 03/28/02 1.745 50,000 148 457,694.45 2.281 TREAS BILLS 03/28/02 1.745 50,000 148 457,694.45 2.281 TREAS BILLS 03/28/02 1.730 50,000 148 458,277.77 2.284 TREAS BILLS 03/28/02 1.730 50,000 148 459,500.00 2.290 TREAS BILLS 03/28/02 1.730 50,000 148 459,500.00 2.290 TREAS BILLS 03/28/02 1.730 50,000 148 459,500.00 2.290 TREAS BILLS 03/28/02 1.730 50,000 148 459,500.00 2.290 14 POOLED MONEY INVESTMENT ACCOUNT sv al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD L9441 HELD J:BBNE YIELD 02/28/02 REDEMPTIONS CB FMCC 6.500% 02/28/02 5.860 20,000 1018 3,292,922.22 5.860 CD CR AGRIC 1.890% 02/28/02 1.890 50,000 107 280,875.00 1.916 CD BN PARIS 1.890% 02/28/02 1.890 50,000 107 280,875.00 1.916 CD BN PARIS 1.890% 02/28/02 1.890 50,000 107 280,875.00 1.916 CD RABO 2.250% 02/28/02 2.240 50,000 136 423,126.96 2.271 CD RABO 2.250% 02/28/02 2.240 50,000 136 423,126.96 2.271 CD RABO 2.250% 02/28/02 2.240 50,000 136 423,126.96 2.271 CD RABO 2.250% 02/28/02 2.240 50,000 136 423,126.96 2.271 CP NCAT 02/28/02 1.800 15,000 1 750.00 1.825 CP DISNEY 02/28/02 2.070 18,000 1 1,035.00 2.098 CP NCAT 02/28/02 1.800 50,000 1 2,500.00 1.825 CP GECC 02/28/02 1.750 50,000 1 2,430.56 1.774 CP GECC 02/28/02 1.750 50,000 1 2,430.56 1.774 CP GECC 02/28/02 1.750 50,000 1 2,430.56 1.774 CP GECC 02/28/02 1.750 50,000 1 2,430.56 1.774 CP SALOMON 02/28/02 1.810 50,000 1 2,513.89 1.835 CP SALOMON 02/28/02 1.810 50,000 1 2,513.89 1.835 CP SALOMON 02/28/02 1.810 50,000 1 2,513.89 1.835 CP SALOMON 02/28/02 1.810 50,000 1 2,513.89 1.835 CP HOUSEHOLD 02/28/02 1.760 50,000 14 34,222.22 1.785 CP HOUSEHOLD 02/28/02 1.760 50,000 14 34,222.22 1.785 CP CITICORP 02/28/02 1.800 50,000 22 55,000.00 1.827 CP CITICORP 02/28/02 1.800 50,000 22 55,000.00 1.827 CP CONAGRA 02/28/02 2.010 20,000 27 30,150.00 2.040 CP CAMPBELL 02/28/02 1.830 25,000 30 38,125.00 1.858 CP COUNTRY 02/28/02 1.830 50,000 30 76,250.00 1.858 CP COUNTRY 02/28/02 1.830 50,000 30 76,250.00 1.858 CP COUNTRY 02/28/02 1.830 50,000 30 76,250.00 1.858 CP COUNTRY 02/28/02 1.830 50,000 30 76,250.00 1.858 CP COUNTRY 02/28/02 1.830 50,000 30 76,250.00 1.858 CP COUNTRY 02/28/02 1.830 50,000 30 76,250.00 1.858 CP COUNTRY 02/28/02 1.830 50,000 30 76,250.00 1.858 CP COUNTRY 02/28/02 1.830 50,000 30 76,250.00 1.858 CP BEAR 02/28/02 1.770 50,000 56 137,666.67 1.799 CP BEAR 02/28/02 1.770 50,000 56 137,666.67 1.799 CP BEAR 02/28/02 1.770 50,000 56 137,666.67 1.799 CP BEAR 02/28/02 1.770 50,000 56 137,666.67 1.799 CP FCAR 02/28/02 1.820 50,000 64 161,777.78 1.851 CP FCAR 02/28/02 1.820 50,000 64 161,777.78 1.851 CP HERTZ 02/28/02 2.560 45,000 77 246,400.00 2.609 CP FMCC 02/28/02 2.650 50,000 79 290,763.89 2.702 CP FMCC 02/28/02 2.650 50,000 79 290,763.89 2.702 CP FMCC 02/28/02 2.650 50,000 79 290,763.89 2.702 CP SRAC 02/28/02 2.950 50,000 101 413,819.44 3.015 CP HOUSEHOLD 02/28/02 1.850 25,000 107 137,465.28 1.886 CP HOUSEHOLD 02/28/02 1.850 50,000 107 274,930.56 1.886 CP AMER EXP 02/28/02 1.840 50,000 107 273,444.44 1.875 CP BEAR 02/28/02 1.820 50,000 112 283,111.11 1.855 15 POOLED MONEY INVESTMENT ACCOUNT'- �1 al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD jQQ42 }gyp EARNED YIELD 02/28/02 REDEMPTIONS (continued) CP FMCC 02/28/02 2.800 50,000 141 548,333.33 2.870 CP FMCC 02/28/02 2.800 50,000 141 548,333.33 2.870 CP FMCC 02/28/02 2.800 50,000 141 548,333.33 2.870 CP FMCC 02/28/02 2.800 50,000 141 548,333.33 2.870 CP FMCC 02/28/02 2.650 20,000 142 209,055.56 2.715 CP FMCC 02/28/02 2.650 50,000 142 522,638.89 2.715 CP GECC 02/28/02 2.260 50,000 142 445,722.22 2.311 CP GECC 02/28/02 2.260 50,000 142 445,722.22 2.311 CP GECC 02/28/02 2.260 50,000 142 445,722.22 2.311 CP GECC 02/28/02 2.260 50,000 142 445,722.22 2.311 CP FCAR 02/28/02 2.320 29,000 146 272,857.78 2.374 CP AMER EXP 02/28/02 2.310 50,000 146 468,416.67 2.364 CP AMER EXP 02/28/02 2.310 50,000 146 468,416.67 2.364 CP AMER EXP 02/28/02 2.310 50,000 146 468,416.67 2.364 CP AMER EXP 02/28/02 2.310 50,000 146 468,416.67 2.364 CP GMAC 02/28/02 2.760 50,000 147 563,500.00 2.830 CP GMAC 02/28/02 2.760 50,000 147 563,500.00 2.830 CP GMAC 02/28/02 2.760 50,000 147 563,500.00 2.830 CP GMAC 02/28/02 2.760 50,000 147 563,500.00 2.830 CP GECC 02/28/02 2.310 50,000 147 471,625.00 2.364 CP GECC 02/28/02 2.310 50,000 147 471,625.00 2.364 CP GECC 02/28/02 2.310 50,000 147 471,625.00 2.364 CP GECC 02/28/02 2.310 50,000 147 471,625.00 2.364 CP GOLDMAN 02/28/02 2.300 50,000 147 469,583.33 2.354 CP GOLDMAN 02/28/02 2.300 50,000 147 469,583.33 2.354 DISC NOTES FHLMC 02/28/02 1.740 50,000 1 2,416.65 1.764 DISC NOTES FHLMC 02/28/02 1.740 50,000 1 2,416.65 1.764 DISC NOTES FHLMC 02/28/02 1.740 50,000 1 2,416.65 1.764 DISC NOTES FHLMC 02/28/02 1.740 50,000 1 2,416.65 1.764 DISC NOTES FHLMC 02/28/02 1.890 20,000 92 96,600.00 1.925 DISC NOTES FHLMC 02/28/02 1.890 50,000 92 241,500.00 1.925 DISC NOTES FNMA 02/28/02 2.360 123 155 1,249.82 2.417 DISC NOTES FNMA 02/28/02 2.360 50,000 155 508,055.56 2.417 DISC NOTES FHLMC 02/28/02 2.400 24,000 157 251,200.00 2.459 DISC NOTES FHLMC 02/28/02 2.400 27,635 157 289,246.33 2.459 DISC NOTES FHLMC 02/28/02 2.400 50,000 157 523,333.34 2.459 DISC NOTES FHLMC 02/28/02 4.290 45,000 318 1,705,275.00 4.520 SALES c/ TREAS NOTES 3.625% 08/31/03 1.770 48,851 1 2,429.77 1.794 TREAS NOTES 3.625% 08/31/03 1.770 50,000 1 2,486.90 1.794 PURCHASES TREAS NOTES 3.000% 02/29/04 3.080 50,000 FNMA 3.875% 03/15/05 4.000 50,000 16 a/ The abbreviations indicate the type of security purchased or sold; Le., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes and Participation Certificates: Federal National Mortgage Association (FNMA), Farmers Home Administration Notes (FHA), Student Loan Marketing Association (SLMA), Small Business Association (SBA), Negotiable Certificates of Deposit (CD), Negotiable Certificates of Deposit Floating Rate (CD FR), Export Import Notes (EXIM), Bankers Acceptances (BA), Commercial Paper (CP), Government National Mortgage Association (GNMA), Federal Home Loan Bank Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC), Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount Notes (FFC), Corporate Securities (CB), US Ship Financing Bonds (TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee Valley Authority (TVA), Medium Term Notes (MTN), Real Estate Mortgage Investment Conduit (REMIC). b/ Purchase or sold yield based on 360 day calculation for discount obligations and Repurchase Agreements. c/ Repurchase Agreement. d/ Par amount of securities purchased, sold or redeemed. e/ Securities were purchased and sold as of the same date. f/ Repurchase Agreement against Reverse Repurchase Agreement. g/ Outright purchase against Reverse Repurchase Agreement. h/ Security "SWAP" transactions. 1 Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. 17 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE ALHAMBRA Grand National Bank 11/27/01 2.060 3,000,000.00 05/17/02 Grand National Bank 05/17/01 3.700 3,000,000.00 05/17/02 Grand National Bank 07/13/01 3.520 3,095,000.00 07/12/02 Grand National Bank 01/07/02 1.840 1,000,000.00 08/13/02 Grand National Bank 01/09/02 1.840 2,000,000.00 08/13/02 Omni Bank 10/25/01 2.190 1,300,000.00 04/23/02 Omni Bank 11/21/01 2.040 2,000,000.00 05/20/02 Omni Bank 11/30/01 1.870 3,000,000.00 06/03/02 Omni Bank 02/27/02 1.920 3,000,000.00 08/27/02 ARROYO GRANDE Mid -State Bank 09/14/01 3.230 5,000,000.00 03/13/02 Mid -State Bank 10/15/01 2.250 5,000,000.00 04/15/02 Mid -State Bank 11/20/01 2.040 5,000,000.00 05/17/02 Mid -State Bank 12/18/01 1.870 5,000,000.00 06/14/02 Mid -State Bank 01/16/02 1.660 5,000,000.00 07/16/02 Mid -State Bank 02/14/02 1.880 5,000,000.00 08/13/02 BEVERLY HILLS City National Bank 09/05/01 3.330 40,000,000.00 03/07/02 City National Bank 04/16/01 4.170 25,000,000.00 04/16/02 City National Bank 12/03/01 1.820 25,000,000.00 06/03/02 City National Bank 02/15/02 1.900 25,000,000.00 08/16/02 BREA Jackson Federal Bank 11/14/01 1.900 10,000,000.00 05/13/02 Jackson Federal Bank 01/22/02 1.740 10,000,000.00 07/22/02 Pacific Western National Bank 11/20/01 2.060 1,000,000.00 05/20/02 CALABASAS First Bank of Beverly Hills FSB 12/07/01 1.820 10,000,000.00 03/20/02 First Bank of Beverly Hills FSB 02/27/02 1.940 10,000,000.00 08/28/02 CAMARILLO First California Bank 12/28/01 1.750 3,000,000.00 03/29/02 First California Bank 11/02/01 1.980 2,000,000.00 04/30/02 First California Bank 01/29/02 1.860 2,000,000.00 07/29/02 18 TIME DEPOSITS DEPOSIT PAR NAME DATE YIELD AMOUNT ($) CAMERON PARK Western Sierra National Bank 01/16/02 Western Sierra National Bank 01/24/02 Western Sierra National Bank 02/06/02 CHICO North State National Bank 11/28/01 North State National Bank 12/07/01 North State National Bank 01/25/02 Tri Counties Bank 12/05/01 Tri Counties Bank 12/17/01 CHULA VISTA North Island Federal Credit Union 01/18/02 North Island Federal Credit Union 02/27/02 CITY OF INDUSTRY EverTrust Bank 12/12/01 EverTrust Bank 01/25/02 CONCORD CA State 9 Credit Union 02/19/02 DUARTE Western State Bank 10/01/01 DUBLIN Operating Engineers FCU 10/11/01 Operating Engineers FCU 12/11/01 Operating Engineers FCU 02/04/02 EL CENTRO Valley Independent Bank 10/31/01 Valley Independent Bank 02/14/02 19 MATURITY DATE 1.680 3,000,000.00 07/16/02 1.810 4,000,000.00 07/16/02 1.890 6,000,000.00 08/15/02 2.080 1,500,000.00 05/17/02 1.890 1,000,000.00 06/05/02 1.830 5,000,000.00 07/26/02 1.780 10,000,000.00 03/05/02 1.750 10,000,000.00 03/18/02 1.750 20,000,000.00 07/17/02 1.930 5,000,000.00 08/27/02 1.770 6,000,000.00 06/11/02 1.790 6,000,000.00 07/29/02 1.900 10,000,000.00 08/20/02 2.420 2,000,000.00 04/02/02 2.230 1.790 1.910 2.040 1.800 5,000,000.00 04/09/02 10,000,000.00 06/12/02 5,000,000.00 08/13/02 20,000,000.00 04/30/02 7,500,000.00 05/15/02 NAME EL SEGUNDO Hawthorne Savings FSB Hawthorne Savings FSB Xerox Federal Credit Union Xerox Federal Credit Union FRESNO United Security Bank United Security Bank United Security Bank FULLERTON Fullerton Community Bank Fullerton Community Bank GLENDALE Verdugo Banking Company Verdugo Banking Company GRANADA HILLS Bank of Granada Hills First State Bank Of California HUNTINGTON BEACH First Bank and Trust First Bank and Trust First Bank and Trust IRVINE Commercial Capital Bank Commercial Capital Bank LA JOLLA Silvergate Bank Silvergate Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 01/04/02 1.760 30,000,000.00 04/04/02 01/04/02 1.870 30,000,000.00 07/09/02 09/04/01 3.350 7,000,000.00 03/04/02 02/14/02 1.890 20,000,000.00 08/16/02 01/10/02 1.730 5,000,000.00 04/10/02 11/15/01 1.910 10,000,000.00 05/14/02 02/06/02 1.880 15,000,000.00 08/05/02 01/25/02 1.860 8,000,000.00 07/26/02 11/19/01 2.040 9,000,000.00 05/17/02 01/08/02 1.740 5,000,000.00 04/02/02 01/08/02 1.840 5,000,000.00 07/02/02 09/18/01 2.740 2,000,000.00 03/18/02 01/23/02 1.750 3,000,000.00 04/23/02 09/11/01 3.240 12,000,000.00 03/11/02 10/29/01 2.150 3,000,000.00 04/26/02 02/26/02 1.910 2,000,000.00 08/26/02 01/07/02 1.880 6,000,000.00 07/01/02 02/26/02 1.950 14,000,000.00 08/26/02 12/13/01 1.700 3,500,000.00 03/13/02 02/04/02 1.900 5,000,000.00 08/02/02 20 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE LAKEPORT Lake Community Bank 12/28/01 1.870 2,000,000.00 06/26/02 LODI Farmers & Merchant Bk Cen CA 01/11/02 1.790 10,000,000.00 07/10/02 LOS ANGELES Broadway Federal Bank 06/13/01 3.580 3,000,000.00 03/11/02 Broadway Federal Bank 01/08/02 1.850 2,500,000.00 07/08/02 California Center Bank 01/03/02 1.730 10,000,000.00 04/03/02 California Chohung Bank 01/07/02 1.740 1,500,000.00 04/02/02 California Chohung Bank 01/14/02 1.710 1,000,000.00 04/15/02 California Chohung Bank 02/19/02 1.870 4,000,000.00 08/19/02 Cathay Bank 09/04/01 3.340 30,000,000.00 03/04/02 Cathay Bank 09/26/01 2.430 19,000,000.00 03/25/02 Cathay Bank 10/10/01 2.230 19,000,000.00 04/08/02 Cedars Bank 09/06/01 3.460 2,500,000.00 03/06/02 Cedars Bank 10/04/01 2.260 5,000,000.00 04/02/02 Cedars Bank 12/21/01 1.840 2,000,000.00 06/19/02 Cedars Bank 01/08/02 1.850 2,500,000.00 07/11/02 Eastern International Bank 11/05/01 1.980 900,000.00 05/07/02 Eastern International Bank 12/10/01 1.890 1,000,000.00 06/10/02 General Bank 08/13/01 3.400 15,000,000.00 03/07/02 General Bank 06/14/01 3.570 20,000,000.00 03/18/02 General Bank 01/28/02 1.790 20,000,000.00 04/30/02 General Bank 02/20/02 1.770 15,000,000.00 05/24/02 General Bank 12/10/01 1.830 25,000,000.00 06/07/02 General Bank 01/18/02 1.730 15,000,000.00 07/17/02 General Bank 02/08/02 1.870 15,000,000.00 08/13/02 General Bank 02/20/02 1.870 15,000,000.00 08/22/02 Hanmi Bank 12/20/01 1.730 25,000,000.00 03/21/02 Hanmi Bank 01/14/02 1.700 25,000,000.00 04/16/02 Hanmi Bank 01/31/02 1.740 20,000,000.00 05/02/02 Hanmi Bank 02/26/02 1.790 25,000,000.00 05/28/02 Manufacturers Bank 12/11/01 1.720 30,000,000.00 03/11/02 Manufacturers Bank 12/21/01 1.750 20,000,000.00 03/21/02 Manufacturers Bank 01/31/02 1.760 10,000,000.00 05/01/02 Marathon National Bank 02/04/02 1.930 2,000,000.00 08/05/02 Mellon First Business Bank 12/28/01 1.740 25,000,000.00 03/20/02 Mellon First Business Bank 09/24/01 2.360 25,000,000.00 03/20/02 21 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE LOS ANGELES (continued) Mellon First Business Bank 01/04/02 1.740 25,000,000.00 04/04/02 Mellon First Business Bank 02/01/02 1.760 25,000,000.00 05/02/02 Nara Bank, NA 10/24/01 2.190 5,000,000.00 04/22/02 Nara Bank, NA 12/19/01 1.830 5,000,000.00 06/17/02 Pacific Union Bank 12/05/01 1.760 20,000,000.00 03/05/02 Pacific Union Bank 01/03/02 1.860 10,000,000.00 07/02/02 Preferred Bank 06/11/01 3,600 9,000,000.00 03/08/02 Preferred Bank 12/18/01 1.800 9,000,000.00 03/18/02 Preferred Bank 02/08/02 1.790 4,000,000.00 05/09/02 Preferred Bank 02/26/02 1.820 7,000,000.00 05/28/02 Preferred Bank 07/16/01 3.550 6,000,000.00 07/16/02 Sae Han Bank 01/15/02 1.620 6,000,000.00 07/15/02 State Bank of India (Calif) 06/12/01 3.600 5,500,000.00 04/02/02 State Bank of India (Calif) 07/18/01 3.510 2,000,000.00 07/18/02 State Bank of India (Calif) 02/25/02 1.890 2,000,000.00 08/27/02 Western Federal Credit Union 10/24/01 2.190 25,000,000.00 04/22/02 Wilshire State Bank 11/06/01 1.970 4,000,000.00 05/06/02 Wilshire State Bank 11/15/01 1.910 2,000,000.00 05/14/02 Wilshire State Bank 12/19/01 1.850 8,000,000.00 06/18/02 Wilshire State Bank 07/13/01 3.540 4,000,000.00 07/12/02 Wilshire State Bank 02/05/02 1.880 4,000,000.00 08/06/02 Wilshire State Bank 02/27/02 1.920 4,000,000.00 08/26/02 MANTECA Delta National Bank 01/04/02 1.770 1,000,000.00 04/04/02 Delta National Bank 01/18/02 1.660 1,000,000.00 04/10/02 Delta National Bank 01/10/02 1.740 1,000,000.00 04/10/02 MERCED County Bank 10/17/01 2.260 5,000,000.00 04/15/02 County Bank 12/07/01 1.910 10,000,000.00 06/06/02 County Bank 01/16/02 1.680 5,000,000.00 07/16/02 County Bank 02/26/02 1.930 5,000,000.00 08/26/02 MONTEREY PARK Trust Bank FSB 01/02/02 1.760 3,000,000.00 04/02/02 Trust Bank FSB 01/02/02 1.860 3,000,000.00 07/01/02 22 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE NORTH HIGHLANDS Safe Credit Union 01/14/02 1.750 5,000,000.00 07/15/02 Safe Credit Union 02/06/02 1.870 20,000,000.00 08/15/02 OAKDALE Oak Valley Community Bank 09/05/01 3.380 500,000.00 03/22/02 Oak Valley Community Bank 03/23/01 4.140 1,500,000.00 03/22/02 Oak Valley Community Bank 10/10/01 2.210 2,500,000.00 04/08/02 Oak Valley Community Bank 06/05/01 3.640 1,500,000.00 06/05/02 OAKLAND Metropolitian Bank 09/24/01 2.390 1,000,000.00 03/25/02 Metropolitian Bank 10/31/01 2.100 1,000,000.00 04/29/02 Metropolitian Bank 11/29/01 1.960 1,000,000.00 05/28/02 ONTARIO Citizens Business Bank 03/26/01 4.150 30,000,000.00 03/26/02 Citizens Business Bank 04/05/01 4.070 25,000,000.00 04/05/02 Citizens Business Bank 05/07/01 3.800 10,000,000.00 05/07/02 Citizens Business Bank 12/03/01 1.830 25,000,000.00 06/03/02 Citizens Business Bank 08/22/01 3.480 30,000,000.00 08/22/02 PALO ALTO Bank of Petaluma 12/17/01 1.760 12,000,000.00 03/13/02 Bank of Petaluma 02/25/02 1.910 3,500,000.00 08/23/02 Bank of Santa Clara 02/25/02 1.910 20,000,000.00 08/23/02 Bay Area Bank 10/30/01 2.090 5,000,000.00 04/29/02 Bay Area Bank 01/14/02 1.760 5,000,000.00 07/15/02 Bay Bank of Commerce 10/30/01 2.110 5,000,000.00 04/29/02 Coast Commercial Bank 01/14/02 1.780 5,000,000.00 07/15/02 Coast Commercial Bank 02/25/02 1.910 20,000,000.00 08/23/02 Cupertino National Bank 12/17/01 1.740 10,000,000.00 03/13/02 Cupertino National Bank 10/30/01 2.090 35,000,000.00 04/29/02 Cupertino National Bank 01/14/02 1.760 10,000,000.00 07/15/02 Cupertino National Bank 02/25/02 1.890 20,000,000.00 08/23/02 Golden Gate Bank 02/25/02 1.910 9,000,000.00 08/23/02 Mid -Peninsula Bank 09/14/01 3.000 10,000,000.00 03/13/02 Mid -Peninsula Bank 10/30/01 2.100 35,000,000.00 04/29/02 Mid -Peninsula Bank 02/25/02 1.900 5,000,000.00 08/23/02 23 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT (a) DATE PALO ALTO (continued) Mt. Diablo National Bank 12/11/01 1.730 10,000,000.00 03/13/02 Peninsula Bank of Commerce 02/25/02 1.890 15,000,000.00 08/23/02 San Jose National Bank 02/13/02 1.840 20,000,000.00 08/14/02 San Jose National Bank 04/30/01 3.870 10,000,000.00 04/30/02 San Jose National Bank 11/01/01 2.000 10,000,000.00 04/30/02 PALOS VERDES ESTATES Malaga Bank PASADENA 02/22/02 1.910 2,000,000.00 08/22/02 Community Bank 04/25/01 3.770 5,000,000.00 04/25/02 Community Bank 06/22/01 3.400 20,000,000.00 06/21/02 Community Bank 01/28/02 1.860 10,000,000.00 07/11/02 Community Bank 07/11/01 3.520 20,000,000.00 07/11/02 Community Bank 02/08/02 1.850 15,000,000.00 08/09/02 Wescom Credit Union 10/09/01 2.270 25,000,000.00 04/08/02 Wescom Credit Union 11/13/01 1.840 10,000,000.00 05/13/02 Wescom Credit Union 12/14/01 1.830 15,000,000.00 06/12/02 Wescom Credit Union 01/28/02 1.890 15,000,000.00 07/26/02 PLACERVILLE El Dorado Savings Bank 03/07/01 4.520 5,000,000.00 03/07/02 El Dorado Savings Bank 03/22/01 4.210 5,000,000.00 03/22/02 El Dorado Savings Bank 04/13/01 4.100 5,000,000.00 04/12/02 El Dorado Savings Bank 04/13/01 4.100 5,000,000.00 04/12/02 El Dorado Savings Bank 05/02/01 3.910 5,000,000.00 05/02/02 El Dorado Savings Bank 06/18/01 3.460 5,000,000.00 06/10/02 El Dorado Savings Bank 06/05/01 3.640 5,000,000.00 06/10/02 El Dorado Savings Bank 12/13/01 1.740 10,000,000.00 06/10/02 El Dorado Savings Bank 02/08/02 2.250 5,000,000.00 02/07/03 POMONA PFF Bank and Trust 12/04/01 1.820 10,000,000.00 06/03/02 PFF Bank and Trust 12/06/01 1.890 10,000,000.00 06/03/02 PFF Bank and Trust 02/28/02 1.890 8,000,000.00 08/30/02 I 24 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE PORTERVILLE Bank of the Sierra 01/23/02 1.750 10,000,000.00 04/22/02 RANCHO SANTA FE La Jolla Bank, FSB 06/06/01 3.620 10,000,000.00 03/01/02 La Jolla Bank, FSB 11/20/01 2.060 15,000,000.00 05/23/02 La Jolla Bank, FSB 02/01/02 1.880 10,000,000.00 08/06/02 La Jolla Bank, FSB 08/06/01 3.500 15,000,000.00 08/06/02 RED BLUFF Tehama Bank 07/03/01 3.620 5,000,000.00 07/03/02 REDDING North Valley Bank 12/14/01 1.810 3,000,000.00 06/12/02 REDWOOD CITY Provident Central Credit Union 11/01/01 2.020 20,000,000.00 05/01/02 RICHMOND Mechanics Bank 03/07/01 4.520 10,000,000.00 03/07/02 Mechanics Bank 04/06/01 4.000 10,000,000.00 04/05/02 Mechanics Bank 04/25/01 3.790 10,000,000.00 04/25/02 Mechanics Bank 05/07/01 3.870 10,000,000.00 05/07/02 Mechanics Bank 06/12/01 3.560 10,000,000.00 06/12/02 Mechanics Bank 07/11/01 3.520 10,000,000.00 07/11/02 Mechanics Bank 08/13/01 3.490 10,000,000.00 08/13/02 Mechanics Bank 10/12/01 2.380 10,000,000.00 10/15/02 SACRAMENTO American River Bank 09/28/01 2.370 1,000,000.00 03/29/02 American River Bank 09/24/01 2.360 3,000,000.00 03/29/02 American River Bank 10/12/01 2.250 1,500,000.00 04/10/02 American River Bank 06/26/01 3.380 1,000,000.00 06/26/02 American River Bank 01/11/02 1.780 1,000,000.00 07/10/02 American River Bank 01/14/02 2.200 1,500,000.00 01/14/03 Bank of Sacramento 12/21/01 1.770 1,000,000.00 03/21/02 Bank of Sacramento 12/21 /01 1.770 1,000,000.00 03/21 /02 25 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SACRAMENTO (continued) Bank of Sacramento 11/15/01 1.930 1,500,000.00 05/14/02 Bank of Sacramento 11 /29/01 1.960 2,000,000.00 05/28/02 Golden One Credit Union 03/23/01 4.120 20,000,000.00 03/22/02 Golden One Credit Union 04/25/01 3.770 10,000,000.00 04/25/02 Golden One Credit Union 12/05/01 1.820 10,000,000.00 05/23/02 Golden One Credit Union 06/08/01 3.600 10,000,000.00 06/07/02 Merchants National Bank 10/19/01 2.210 2,000,000.00 04/17/02 Merchants National Bank 07/23/01 3.460 2,000,000.00 07/23/02 River City Bank 10/04/01 2.330 4,000,000.00 04/02/02 River City Bank 01/07/02 1.860 2,000,000.00 07/01/02 River City Bank 01/28/02 1.870 3,000,000.00 07/29/02 River City Bank 02/26/02 1.930 2,000,000.00 08/27/02 U.S. Bank 08/07/01 3.550 25,000,000.00 05/06/02 U.S. Bank 02/04/02 1.800 25,000,000.00 05/06/02 U.S. Bank 02/04/02 1.930 25,000,000.00 08/02/02 U.S. Bank 02/19/02 1.890 25,000,000.00 08/23/02 Union Bank of California 10/19/01 2.210 50,000,000.00 04/17/02 Union Bank of California 10/29/01 2.100 100,000,000.00 04/17/02 Union Bank of California 11/09/01 1.800 150,000,000.00 05/08/02 Union Bank of California 12/19/01 1.830 100,000,000.00 06/18/02 United California Bank 09/07/01 3.380 60,000,000.00 03/06/02 United California Bank 01/23/02 1.710 22,000,000.00 03/06/02 SALINAS Community Bk Central Calif 12/21/01 1.710 10,000,000.00 03/21/02 Community Bk Central Calif 01/09/02 1.700 10,000,000.00 04/11/02 Community Bk Central Calif 10/25/01 2.170 5,000,000.00 04/23/02 Community Bk Central Calif 10/25/01 2.170 5,000,000.00 04/23/02 SAN BERNARDINO Business Bank of California 01/09/02 1.730 8,000,000.00 04/09/02 Business Bank of California 02/05/02 1.810 12,000,000.00 05/06/02 SAN DIEGO First Future Credit Union 09/04/01 3.320 5,000,000.00 03/01/02 First Future Credit Union 11/30/01 1.850 5,000,000.00 05/29/02 First Future Credit Union 12/19/01 1.830 3,000,000.00 06/21/02 First United Bank 01/18/02 1.680 2,000,000.00 07/18/02 First United Bank 02/15/02 2.300 1,000,000.00 02/14/03 3i TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SAN DIEGO (continued) Neighborhood National Bank 02/22/02 1.910 2,000,000.00 08/22/02 SAN FRANCISCO America California Bank 01/28/02 1.790 1,500,000.00 04/30/02 America California Bank 10/31/01 2.060 1,000,000.00 04/30/02 Bank of Canton California 09/10/01 3.230 20,000,000.00 03/08/02 Bank of Canton California 12/17/01 1.750 15,000,000.00 04/12/02 Bank of Canton California 11/21/01 2.050 10,000,000.00 05/22/02 Bank of Canton California 05/22/01 3.770 15,000,000.00 05/22/02 Bank of Canton California 12/12/01 1.770 20,000,000.00 06/11/02 Bank of Canton California 07/16/01 3.550 25,000,000.00 07/16/02 Bank of Canton California 08/31/01 3.470 20,000,000.00 08/30/02 Bank of the West 01/02/02 1.730 34,000,000.00 04/02/02 Bank of the West 01/08/02 1.730 50,000,000.00 04/02/02 Bank of the West 10/15/01 2.260 50,000,000.00 04/15/02 Bank of the West 11/20/01 2.050 142,000,000.00 05/20/02 Bank of the West 01/24/02 1.780 76,500,000.00 07/23/02 Bank of the West 02/20/02 1.870 100,000,000.00 08/20/02 California Federal Bank 10/16/01 2.270 100,000,000.00 04/15/02 California Federal Bank 12/14/01 1.800 50,000,000.00 06/07/02 California Federal Bank 01/04/02 1.860 50,000,000.00 07/03/02 California Federal Bank 02/22/02 1.900 50,000,000.00 08/22/02 California Pacific Bank 12/28/01 1.740 2,000,000.00 03/28/02 California Pacific Bank 01/10/02 1.710 1,000,000.00 04/10/02 California Pacific Bank 02/15/02 1.770 1,000,000.00 05/16/02 Oceanic Bank 03/15/01 4.430 4,000,000.00 03/15/02 Trans Pacific National Bank 03/19/01 4.250 800,000.00 03/19/02 Trans Pacific National Bank 02/05/02 1.880 1,000,000.00 08/05/02 United Commercial Bank 04/04/01 4.160 30,000,000.00 04/04/02 United Commercial Bank 06/05/01 3.660 10,000,000.00 06/05/02 United Commercial Bank 12/14/01 1.810 25,000,000.00 06/05/02 United Commercial Bank 12/21/01 1.840 25,000,000.00 07/02/02 United Commercial Bank 07/31/01 3.480 40,000,000.00 07/31/02 United Commercial Bank 02/28/02 1.900 30,000,000.00 08/30/02 SANJOSE Comerica Bank of California 12/04/01 1.840 63,000,000.00 03/04/02 Comerica Bank of California 01/09/02 1.730 71,000,000.00 04/09/02 Comerica Bank of California 02/06/02 1.810 183,000,000.00 05/07/02 Heritage Bank of Commerce 02/15/02 1.900 2,000,000.00 08/15/02 27 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT (a) DATE SAN JOSE (continued Meriwest Credit Union 02/06/02 1.810 5,000,000.00 05/07/02 Meriwest Credit Union 12/20/01 1.860 5,000,000.00 06/18/02 Meriwest Credit Union 01/18/02 1.750 5,000,000.00 07/19/02 Meriwest Credit Union 02/28/02 1.920 5,000,000.00 08/28/02 Santa Clara Co. Fed. C.U. 02/05/02 1.880 15,000,000.00 08/06/02 SAN LUIS OBISPO Mission Community Bank 09/10/01 3.250 1,000,000.00 03/08/02 Mission Community Bank 10/11/01 2.240 1,500,000.00 04/09/02 Mission Community Bank 12/21/01 1.720 1,000,000.00 04/09/02 Mission Community Bank 12/10/01 1.840 1,000,000.00 06/11/02 San Luis Trust Bank 10/26/01 2.130 1,000,000.00 04/24/02 San Luis Trust Bank 01/08/02 1.840 1,350,000.00 07/11/02 SAN MARINO East West Federal Bank 11/16/01 1.900 38,000,000.00 05/15/02 East West Federal Bank 11/28/01 2.080 35,000,000.00 06/10/02 East West Federal Bank 01/04/02 1.860 42,000,000.00 07/09/02 East West Federal Bank 02/07/02 2.260 35,000,000.00 02/07/03 SAN RAFAEL Metro Commerce Bank 11/28/01 2.070 1,800,000.00 05/30/02 Westamerica Bank 12/19/01 1.730 25,000,000.00 03/19/02 Westamerica Bank 01/09/02 1.700 50,000,000.00 04/09/02 Westamerica Bank 02/07/02 1.760 35,000,000.00 05/08/02 Westamerica Bank 07/18/01 3.510 25,000,000.00 07/18/02 Westamerica Bank 07/30/01 3.490 50,000,000.00 07/30/02 SAN RAMON EBTEL Federal Credit Union 01/02/02 1.840 1,000,000.00 07/01/02 EBTEL Federal Credit Union 02/13/02 1.800 750,000.00 07/18/02 EBTEL Federal Credit Union 02/14/02 1.860 1,000,000.00 08/13/02 SANTA BARBARA FNB of Central California 09/12/01 3.220 10,000,000.00 03/11/02 FNB of Central California 10/12/01 2.280 10,000,000.00 04/10/02 FNB of Central California 11/30/01 1.860 10,000,000.00 06/03/02 28 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SANTA BARBARA (continued FNB of Central California 12/20/01 1.840 10,000,000.00 06/14/02 FNB of Central California 01/25/02 1.810 15,000,000.00 07/25/02 Santa Barbara Bank & Trust 10/01/01 2.400 10,000,000.00 04/02/02 Santa Barbara Bank & Trust 11/01/01 2.000 10,000,000.00 05/01/02 Santa Barbara Bank & Trust 11/30/01 1.850 20,000,000.00 06/03/02 Santa Barbara Bank & Trust 12/20/01 1.830 20,000,000.00 06/14/02 Santa Barbara Bank & Trust 01/25/02 1.800 30,000,000.00 07/25/02 Santa Barbara Bank & Trust 02/08/02 1.850 16,000,000.00 08/15/02 SANTA CLARITA Valencia Bank & Trust 09/17/01 3.000 4,000,000.00 03/19/02 SANTA MARIA Hacienda Bank 09/11/01 3.260 1,000,000.00 03/11/02 SANTA ROSA National Bank of the Redwoods 10/29/01 2.140 10,000,000.00 04/26/02 National Bank of the Redwoods 01 /28/02 1.860 5,000,000.00 07/26/02 Redwood Credit Union 12/28/01 1.840 8,000,000.00 06/24/02 Redwood Credit Union 02/28/02 1.950 17,000,000.00 08/28/02 SONORA Central California Bank 12/03/01 1.830 1,000,000.00 03/04/02 STOCKTON Pacific State Bank 10/12/01 2.260 1,000,000.00 04/10/02 Pacific State Bank 01/08/02 1.850 1,000,000.00 07/02/02 Service 1st Bank 01/31/02 1.780 2,000,000.00 05/01/02 Service 1st Bank 02/05/02 1.900 2,000,000.00 08/05/02 Union Safe Deposit Bank 08/22/01 3.420 10,000,000.00 03/01/02 Union Safe Deposit Bank 10/11/01 2.270 10,000,000.00 04/11/02 Union Safe Deposit Bank 11/05/01 2.020 10,000,000.00 05/07/02 Union Safe Deposit Bank 12/11/01 1.830 10,000,000.00 06/12/02 Union Safe Deposit Bank 01/23/02 1.820 15,000,000.00 07/25/02 Union Safe Deposit Bank 02/14/02 1.930 5,000,000.00 08/15/02 Union Safe Deposit Bank 02/14/02 1.930 10,000,000.00 08/15/02 Washington Mutual Bank 12/21/01 1.830 15,000,000.00 06/17/02 29 NAME STOCKTON (continued! Washington Mutual Bank Washington Mutual Bank Washington Mutual Bank SUNNYVALE Asiana Bank TORRANCE China Trust Bank (USA) China Trust Bank (USA) China Trust Bank (USA) China Trust Bank (USA) South Bay Bank South Bay Bank South Bay Bank South Bay Bank South Bay Bank TUSTIN First Fidelity Investment & Loan First Fidelity Investment & Loan First Fidelity Investment & Loan Sunwest Bank Sunwest Bank Sunwest Bank Sunwest Bank VACAVILLE Travis Credit Union WATSONVILLE Monterey Bay Bank Monterey Bay Bank Monterey Bay Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 12/10/01 1.820 30,000,000.00 06/17/02 01/24/02 1.770 60,000,000.00 07/23/02 02/19/02 1.870 60,000,000.00 08/19/02 12/20/01 1.750 1,500,000.00 03/21/02 12/19/01 1.750 10,000,000.00 03/14/02 12/14/01 1.740 25,000,000.00 03/14/02 01/18/02 1.650 30,000,000.00 04/18/02 02/15/02 1.910 20,000,000.00 08/16/02 06/07/01 3.620 3,000,000.00 03/01/02 09/06/01 3.430 5,000,000.00 03/15/02 11/20/01 2.040 2,000,000.00 03/20/02 11/08/01 1.780 4,000,000.00 05/07/02 01/25/02 1.830 1,000,000.00 07/24/02 12/05/01 1.770 15,000,000.00 03/05/02 01/15/02 1.610 10,000,000.00 04/16/02 02/07/02 1.770 15,000,000.00 05/08/02 12/07/01 1.770 1,000,000.00 03/08/02 01/09/02 1.700 3,500,000.00 04/09/02 01/25/02 1.730 2,500,000.00 04/26/02 02/08/02 1.760 7,800,000.00 05/10/02 02/28/02 1.930 40,000,000.00 08/28/02 09/20/01 2.390 8,000,000.00 03/20/02 12/17/01 1.840 3,000,000.00 06/17/02 01/07/02 1.860 8,000,000.00 07/10/02 30 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE WHITTIER Quaker City Bank 11/27/01 2.280 8,000,000.00 04/05/02 Quaker City Bank 04/06/01 4.000 8,000,000.00 04/05/02 Quaker City Bank 06/27/01 2.080 25,000,000.00 05/24/02 Quaker City Bank 12/28/01 1.830 10,000,000.00 07/12/02 Quaker City Bank 01/08/02 1.860 14,000,000.00 07/12/02 TOTAL TIME DEPOSITS FEBRUARY 2002 31 5,203,795,000.00 BANK DEMAND DEPOSITS FEBRUARY 2002 ($ in thousands) DAILY BALANCES DAY OF BALANCES WARRANTS MONTH PER BANKS OUTSTANDING 1 $ 818,858 $ 2,200,526 2 818,858 2,200,526 3 818,858 2,200,526 4 629,911 1,927,313 5 520,062 1,812,288 6 498,422 1,996,874 7 296,999 1,996,118 8 600,523 1,878,831 9 600,523 1,878,831 10 600,523 1,878,831 11 143,534 1,681,438 12 312,176 1,681,438 13 615,632 1,395,964 14 388,433 1,366,601 15 742,915 1,556,109 16 742,915 1,562,019 17 742,915 1,562,019 18 742,915 1,562,019 19 566,401 1,556,504 20 518,051 1,509,786 21 476,770 1,789,098 22 419,883 2,159,973 23 419,883 2,159,973 24 419,883 2,159,973 25 400,680 1,957,732 26 569,315 1,908,051 27 58,616 2,121, 316 28 700,502 2,300,842 AVERAGE DOLLAR DAYS $ 542,320 a/ a� The prescribed bank balance for February was $ 673,424. This consisted of $ 607,025 in compensating balances for services, balances for uncollected funds of $ 76,968 and a deduction of $ 10,569 for February delayed deposit credit. 32 DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1632 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on February 20, 2002, has determined and designated the amount of money available for deposit and investment under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code, it is the intent that the money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management, and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ- actions, and for investment in securities and the type of such deposits and investments as follows: 1. In accordance with law, for deposit in demand bank accounts as Compensating Balance for Services $ 607,025,000 The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in such a manner as to realize the maximum return consistent with safe and prudent treasury management. 2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest - bearing deposits in banks and savings and loan associations as follows: From To ( 1) 2/18/2002 2/22/2002 (2) 2/25/2002 3/1/2002 (3) 3/4/2002 3/8/2002 (4) 3/11/2002 3/15/2002 (5) 3/18/2002 3/22/2002 (6) 3/25/2002 3/29/2002 (7) 4/1/2002 4/5/2002 (8) 4/8/2002 4/12/2002 (9) 4/15/2002 4/19/2002 Time Deposits in Various Financial Institutions In Securities (sections 16503a Estimated Transactions (section 16430)' and 16602)' Total $ 1,454,000,000 $ 46,103,205,000 $ 5,196,795,000 $ 51,300,000,000 $ (2,092,200,000) $ 44,011,005,000 $ 5,196,795,000 $ 49,207,800,000 $ 524,500,000 $ 44,535,505,000 $ 5,196,795,000 $ 49,732,300,000 $ 766,800,000 $ 45,302,305,000 $ 5,196,795,000 $ 50,499,100,000 $ 299,300,000 $ 45,601,605,000 $ 5,196,795,000 $ 50,798,400,000 $ (347,800,000) $ 45,253,805,000 $ 5,196,795,000 $ 50,450,600,000 $ (1,332,200,000) $ 43,921,605,000 $ 5,196,795,000 $ 49,118,400,000 $ 236,200,000 $ 44,157,805,000 $ 5,196,795,000 $ 49,354,600,000 $ 4,385,100,000 $ 48,542,905,000 $ 5,196,795,000 $ 53,739,700,000 From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e), Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the amounts and for the same types of investments as specifically designated above. Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $ 607,025,000. POOLED MONEY INVESTMENT BOARD: SIGNATURES ON FILE AT STO & SCO Chairperson Member Dated: February 20, 2002 Government Code 33 Member INVESTMENT ADVISORY BOARD Meeting Date: TITLE: May 8, 2002 Consideration of Fiscal Year 2002/03 Investment Policies BACKGROUND: Business Session No. B Pursuant to State Legislation the City investment policies must be approved on an annual basis by the City Council. This approval is done in June of each year. Attached please find a strikeout version of the changes to the Investment Policy. RECOMMENDATION: Continued review of the Investment policies for approval by City Council in June 2002. J� in M. Falconjr, Finance Director CITY OF LA QUINTA Investment Policy Table of Contents Section Topic Page Executive Summary 2 I General Purpose 5 II Investment Policy 5 III Scope 5 IV Objectives 6 ► Safety ► Liquidity ► Yield ► Diversified Portfolio V Prudence 7 VI Delegation of Authority 7 VII Conflict of Interest 8 Vill Authorized Financial Dealers and Institutions 8 ► Broker/Dealers ► Financial Institutions IX Authorized Investments and Limitations 10 Investment Pools 13 XI Safekeeping and Custody 14 XII Interest Earning Distribution Policy 14 XIII Internal Controls and Independent Auditors 15 XIV Benchmark 16 XV Reporting Standards 16 XVI Investment of Bond Proceeds 17 XVII Investment Advisory Board - City of La Quinta 18 XVIII Investment Policy Adoption 18 1XX Maximum Maturity*i� s 18 Appendices: A. Summary of Authorized Investments and Limitations 20 B. Municipal Code Ordinance 2.70 - Investment Advisory Board 21 C. Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 22 D. Segregation of Major Investment Responsibilities 24 E. Listing of Approved Financial Institutions 25 F. Broker/Dealer Questionnaire and Certification 26 G. Investment Pool Questionnaire 31 H. Glossary 35 1 City of La Quinta Investment Policy Executive Summary The general purpose of this Investment Policy is to provide the rules and standards users must follow in investing funds of the City of La Quinta. It is the policy of the City of La Quinta to invest all public funds in a manner which will provide a diversified portfolio with maximum security while meeting daily cash flow demands and the highest investment return in conformity to all state and local statutes. This Policy applies to all cash and investments of the City of La Quinta, La Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter referred in this document as the "City". The primary objectives, in order of priority, of the City of La Quinta's investment activity shall be: Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return or yield throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Within the constraints of safety, liquidity and yield, the City will endeavor to maintain a diversified portfolio by allocating assets between different types of investments within policy limitations. Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The 2 Treasurer shall establish and implement a system of internal controls to maintain the safety of the portfolio. In addition, the internal control system will also insure the timely preparation and accurate reporting of the portfolio financial information. As part of the annual audit of the City of La Quinta's financial statements the independent auditor reviews the adequacy of those controls and comments if weaknesses are found. Investment responsibilities carry added duties of insuring that investments are made without improper influence or the appearance to a reasonable person of questionable or improper influence. The City of La Quinta Investment Policy maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions selected by the Treasurer to provide investment services will be approved by the City Manager subject to City Council approval. The Treasurer will be permitted to invest only in City approved investments up to the maximum allowable percentages or dollar limitations and, where applicable, through the bid process requirements. Authorized investment vehicles and related maximum portfolio positions are listed in Appendix A - Summary of Authorized Investments and Limitations. At least two bids will be required of investments in the authorized investment vehicles. Collateral ization will be required for Certificates of Deposits in excess of $100,000. Collateral will always be held by an independent third party from the institution that sells the Certificates of Deposit to the City. Evidence of compliance with State Collateral ization policies must be supplied to the City and retained by the City Treasurer. The City of La Quinta Investment Policy shall require that each individual investment have a maximum maturity of two years unless specific approval is authorized by the City Council, except that up to $10 million, as detailed in Section IXX, may be invested in U.S. Treasury bills, notes and bonds maturing between 2 and 5 years. In addition, the City's investment in the State Local Agency Investment Fund (LAIF) is allowable as long as the average maturity does not exceed two years, unless specific approval is authorized by the City Council. The City's investment in Money Market Mutual funds is allowable as long as the average maturity does not exceed 60 days. The City of La Quinta Investment Policy will use the six month U.S. Treasury Bill as a benchmark when measuring the performance of the investment portfolio. The Investment Policies shall be adopted by resolution of the La Quinta City Council on an annual basis, The Investment Policies will be adopted before the end of June of each year. 3 This Executive Summary is an overall review of the City of La Quinta Investment Policies. Reading this summary does not constitute a complete review, which can only be accomplished by reviewing all the pages. M City of La Quinta Statement of Investment Policy July 1, 2001 2002 through June 30, 2002 2003 Scheduled for Adoption by the City Council on June 4-9 18, 2001- 2002 GENERAL PURPOSE The general purpose of this document is to provide the rules and standards users must follow in administering the City of La Quinta cash investments. II INVESTMENT POLICY It is the policy of the City of La Quinta to invest public funds in a manner which will provide a diversified portfolio with safety of principal as the primary objective while meeting daily cash flow demands with the highest investment return. In addition, the Investment Policy will conform to all State and local statutes governing the investment of public funds. III SCOPE This Investment Policy applies to all cash and investments of the City of La Quinta, City of La Quinta Redevelopment Agency and the City of La Quinta Financing Authority, hereafter referred in this document as the "City". These funds are reported in the City of La Quinta Comprehensive Annual financial Report (CAFR) and include: All funds within the following fund types: ► General ► Special Revenue ► Capital Projects ► Debt Service ► Internal Service ► Trust and Agency ► Any new fund types and fund(s) that may be created. 5 IV OBJECTIVES The primary objective, in order of priority, of the City of La Quinta's investment activity shall be: 1. Safety Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio in accordance with the permitted investments. The objective will be to mitigate credit risk and interest rate risk. A. Credit Risk Credit Risk - is the risk of loss due to the failure of the security issuer or backer. Credit risk may be mitigated by: ► Limiting investments to the safest types of securities; ► Pre -qualifying the financial institutions, and broker/dealers, which the City of La Quinta will do business; and ► Diversifying the investment portfolio so that potential losses on individual securities will be minimized. B. Interest Rate Risk Interest Rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may be mitigated by: ► Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and ► By investing operating funds primarily in shorter -term securities. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring. the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore since all possible cash demands cannot be anticipated the portfolio should be diversified and consist of securities with A active secondary or resale markets. Securities shall not be sold prior to maturity with the following exceptions: ► A declining credit security could be sold early to minimize loss of principal; ► Liquidity needs of the portfolio require that the security be sold. 3. Yield ► The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed 4. Diversified Portfolio Within the constraints of safety, liquidity and yield, the City will endeavor to maintain a diversified portfolio by allocating assets between different types of investments within policy limitations. V PRUDENCE The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate Code Sections 16045 through 16054. Section 16053 sets forth the terms of a prudent person which are as follows: Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence excerise in the professional management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. VI DELEGATION OF AUTHORITY Authority to manage the City of La Quinta's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of 7 authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager or Assistant City Manager shall approve in writing all purchases and sales of investments prior to their execution by the City Treasurer. VII CONFLICT OF INTEREST Investment responsibilities carry added duties of insuring that investments are made without improper influence or the appearance of improper influence. Therefore, the City Manager, Assistant City Manager, and the City Treasurer shall adhere to the State of California Code of Economic Interest and to the following: ► The City Manager, Assistant City Manager, and the City Treasurer shall not personally or through a close relative maintain any accounts, interest, or private dealings with any firm with which the City places investments, with the exception of regular savings, checking and money market accounts, or other similar transactions that are offered on a non-negotiable basis to the general public. Such accounts shall be disclosed annually to the City Clerk in conjunction with annual disclosure statements of economic interest. ► All persons authorized to place or approve investments shall report to the City Clerk kinship relations with principal employees of firms with which the City places investments. VIII AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City of La Quinta Investment Policy maintains a listing of financial institutions which are approved for investment purposes. In addition a list will also be maintained of approved broker/dealers selected by credit worthiness, who maintain an office in the State of California. 1. Broker/Dealers who desire to become bidders for investment transactions must supply the City of La Quinta with the following: ► Current audited financial statements ► Proof of National Association of Security Dealers Certification ► Trading resolution ► Proof of California registration ► Resume of Financial broker FP ► Completion of the City of La Quinta Broker/Dealer questionnaire which contains a certification of having read the City of La Quinta Investment Policy The City Treasurer shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and individual conducting investment related business. The City Treasurer will also contact the following agencies during the verification process: ► National Association of Security Dealer's Public Disclosure Report File - 1-800-289-9999 ► State of California Department of Corporations 1-916-445-3062 All Broker/Dealers selected by the City Treasurer to provide investment services will be approved by the City Manager subject to City Council approval. The City Attorney will perform a legal review of the trading resolution/investment contract submitted by each Broker/Dealer. Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment: A. Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC) B. Collateral - The amount of City of La Quinta deposits or investments not insured by the FDIC -shall be 110% collateralized by securities' or 150% mortgages' market values of that amount of invested funds plus unpaid interest earnings. C. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Annual Call Report. The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. E IX AUTHORIZED INVESTMENTS AND LIMITATIONS The City Treasurer will be permitted to invest in the investments summarized in the Appendix A. STATE OF CALIFORNIA AND CITY OF LA QUINTA LIMITATIONS As provided in Sections 16429.1, 53601, 53601 .1, and 53649 of the Government Code, the State of California limits the investment vehicles available to local agencies as summarized in the following paragraphs. Section 53601, as now amended, provides that unless Section 53601 specifies a limitation on an investment's maturity, no investments with maturities exceeding five years shall be made. The City of La Quinta Investment Policy has specified that no investment may exceed two years, except that up to $ 10 million, as detailed in Section IXX, may be invested in U. S. Treasury bills, notes and bonds maturing between 2 and 5 years. State Treasurer's Local Agency Investment Fund (LAIF) - As authorized in Government Code Section 16429.1 and by LAIF procedures, local government agencies are each authorized to invest a maximum of $30— 40 million per account in this investment program administered by the California State Treasurer. The City's investment in the State Local Agency Investment Fund (LAIF) is allowable as long as the average maturity of its investment portfolio does not exceed two years, unless specific approval is authorized by the City Council. The City of La Quinta has two accounts with LAIF. The City of La Quinta Investment Policy has a limitation of 20% of the portfolio. U.S. Government and Related Issues - As authorized in Government Code Sections 53601 (a) through (n) as they pertain to surplus funds, this category includes a wide variety of government securities which include the following: • Local government bonds or other indebtedness and State bonds or other indebtedness. The City of La Quinta Investment Policy does not allow investments in local and state indebtedness • U.S. Treasury bills, notes and bonds and Government National Mortgage Association (GNMA) securities directly issued and backed by the full faith and credit of the U.S. Government. The City of La Quinta Investment Policy limits investments in U.S. Treasury issues and GNMA to 100% of the portfolio. • U.S. Government instrumentalities and agencies issuing securities not backed as to principal and interest by the full faith and credit of the U.S. Government. The Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit iK Bank (FICB) are such issuers. The City of La Quinta Investment Policy has a limitation of 43 $5 million per issuer. • Federal government sponsored enterprises (GSEs) issuing securities not backed as to principal and interest by the full faith and credit of the U.S. Government. These GSEs include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Student Loan Marketing Association (SLMA) which are publicly owned. The City of La Quinta Investment Policy has a limitation of $5 million for FNMA, $5 million for FHLMC , and $3 million for SLMA. Bankers' Acceptances - As authorized in Government Code Section 53601 (f), 40% of the portfolio may be invested in Bankers' Acceptances, although no more than 30% of the portfolio may be invested in Bankers' Acceptances with any one commercial bank. Additionally, the maturity period cannot exceed 180 days. The City of La Quinta Investment Policy does not allow investment in Bankers' Acceptances. Commercial Paper - As authorized in Government Code Section 53601(g), 15% of the portfolio may be invested in commercial paper of the highest rating (A-1 or P-1) as rated by Moody's or Standard and Poor's, with maturities not to exceed 270 days. This per may be increased to 30% if the dollar weighted average maturity does not exceed 31 days. There are a number of other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of the investment. The City of La Quinta's Investment Policy follows The Government Code with the following additional limitations: (1) maximum maturity per issue of 90 days and (2) a maximum of -$-2 3 million per issuer. Negotiable Certificates of Deposit - As authorized in Government Code Section 53601(h), 30% of the portfolio may be invested in negotiable certificates of deposit issued by commercial banks and savings and loan associations. The City of La Quinta Investment Policy does not allow investment in Negotiable Certificates of Deposit. Repurchase and Reverse Repurchase Agreements - As authorized in Government Code Section 53601(i), these investment vehicles are agreements between the local agency and seller for the purchase of government securities to be resold at a specific date and for a specific amount. Repurchase agreements are generally used for short term investments varying from one day to two weeks. There is no legal limitation on the amount of the repurchase agreement. However, the maturity period cannot exceed one year. The market value of securities underlying a repurchase agreement shall be at least 102% of the 11 funds invested and shall be valued at least quarterly. The City of La Quinta Investment Policy does not allow investment in Repurchase Agreements. The term "reverse repurchase agreement" means the sale of securities by the local agency pursuant to an agreement by which the local agency .will repurchase such securities on or before a specific date and for a specific amount. As provided in Government Code Section 53635, reverse repurchase agreements require the prior approval of the City Council. The City of La Quinta Investment Policy does not allow investment in Reverse Repurchase Agreements. Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies may invest in corporate notes for a maximum period of five years in an amount not to exceed 30% of the agency's portfolio. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City of La Quinta Investment Policy does not allow investment in corporate notes. Diversified Management Companies - As authorized in Government Code Section 53601 (k), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). The City of La Quinta Investment Policy only allows investments in mutual funds that are money market funds maintaining a par value of $1 per share that invests in direct issues of the U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not exceeding 90 days and the City limits such investments to 20% of the portfolio. Mortgage -Backed Securities - As authorized in Government code Section 53601(n), local agencies may invest in mortgage -backed securities such as mortgage pass -through securities and collateralized mortgage obligations for a maximum period of five years in an amount not to exceed 20% of the agency's portfolio. Securities eligible for investment shall have a "A" or higher rating. The City of La Quinta Investment Policy does not allow investment in Mortgage - Backed Securities. 12 Financial Futures and Financial Option Contracts - As authorized in Government Code Section 53601.1, local agencies may invest in financial futures or option contracts in any of the above investment categories subject to the same overall portfolio limitations. The City of La Quinta Investment Policy does not allow investments in financial futures and financial option contracts. Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of Deposit are fixed term investments which are required to be collateralized from 1 10% to 150% depending on the specific security pledged as collateral in accordance with Government Code Section 53652. There are no portfolio limits on the amount or maturity for this investment vehicle. Collateral ization will be required for Certificates of Deposits in excess of the FDIC insured amount. The type of collateral is limited to City authorized investments. Collateral will always be held by an independent third party from the institution that sells the Certificates of Deposit to the City. Evidence of compliance with State Collateralization policies must be supplied to the City and retained by the City Treasurer as follows: 1. Certificates of Deposits Insured by the FDIC. The City Treasurer may waive collateralization of a deposit that is federally insured. 2. Certificates of Deposit in excess of FDIC Limits. The amount not federally insured shall be 1 10% collateralized securities or 150% mortgages market value of that amount of invested funds plus unpaid interest earnings. The City of La Quinta Investment Policy limits the percentage of Certificates of Deposit to 60% of the portfolio. Sweep Accounts - As authorized by the City Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account with a $50,000 target balance may be maintained in conjunction with the checking account. Derivatives - The City of La Quinta Investment Policy does not allow investment in derivatives. X INVESTMENT POOLS There are three (3) types of investment pools: 1) state -run pools, 2) pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee i.e. County Pool; and 3) pools that are operated for profit by third parties. 13 The City of La Quinta Investment Policy has authorized investment with the State of California's Treasurers Office Local Agency Investment Fund commonly referred to as LAIF. LAIF was organized in 1977 through State Legislation Section 16429.1, 2 and 3. Each LAIF account is restricted to a maximum investable limit of $30 40 million. In addition, LAIF will provide quarterly market value information to the City of La Quinta. On an annual basis the City Treasurer will submit the Investment Pool Questionnaire to LAIF. Also, prior to opening any new Investment Pool account, which would require City Council approval, the City Treasurer will require the completion of the Investment Pool Questionnaire. The City does not allow investments with any other Investment Pool - County Pools or Third Party Pools. XI SAFEKEEPING AND CUSTODY All security transactions of the City of La Quinta Investment Policy shall be conducted on a delivery - versus - payment (DVP) basis. Securities will be held by a third party custodian designated by the City Treasurer and evidenced by safekeeping receipts. Deposits and withdrawals of money market mutual funds and LAIF shall be made directly to the entity and not to an investment advisor, broker or dealer. Money market mutual funds and LAIF shall also operate on a DVP basis to be considered for investment. XII INTEREST EARNING DISTRIBUTION POLICY Interest earnings is generated from pooled investments and specific investments. 1 . Pooled Investments - It is the general policy of the City to pool all available operating cash of the City of La Quinta, La Quinta Redevelopment Agency and La Quinta Financing Authority and allocate interest earnings, in the following order, as follows: A. Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. B. Payment to the General Fund of a management fee equal to 5% of the annual pooled cash fund investment earnings. C. Payment to each fund of an amount based on the average computerized 14 daily cash balance included in the common portfolio for the earning period. 2. Specific Investments - Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIII INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► The orderly and efficient conduct of its business, including adherence to management policies; ► Prevention or detection of errors and fraud; ► The accuracy and completeness of accounting records; and, ► Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: a. Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. b. Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. C. Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. d. Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. e. Clear delectation of authority to subordinate staff members. Subordinate staff 15 members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. f. Written confirmation or telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up. g. Development of a wire transfer agreement with the City's bank and third party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The System of Internal Controls developed by the City, shall be reviewed annually by the independent auditor in connection with the annual audit of the City of La Quinta's Financial Statements. The independent auditor's management letter comments pertaining to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The management letter comments pertaining to cash and investment activities and the City Treasurer's response shall be provided to the City's Investment Advisory Board for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Investment Advisory Board and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. XIV BENCHMARK The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles commensurate with the investment risk constraints and the cash flow needs of the City. Return on investment is of least importance compared to safety and liquidity objectives. The City of La Quinta Investment Policy will use the six month U.S. Treasury Bill as a benchmark when measuring the performance of the investment portfolio. XV REPORTING STANDARDS SB564 section 3 requires a quarterly report to the Legislative Body of Investment 16 restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. XVII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA The Investment Advisory Board (IAB) consists of seven members of the community that have been appointed by and report to the City Council. The IAB usually_meets on a monthly basis, but at least quarterly to (1) review at least annually the City's Investment Policy and recommend appropriate changes; (2) review monthly Treasury Report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet with the independent auditor after completion of the annual audit of the City's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls and findings for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use or change of financial institutions, custodians, brokers and dealers. The appendices include City of La Quinta Ordinance 2.70 entitled Investment Advisory Board Provisions. XVIII INVESTMENT POLICY ADOPTION On an annual basis, the Investment policies will be initially reviewed by the Investment Advisory Board and the City Treasurer. The Investment Advisory Board will forward the Investment policies, with any revisions, to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City Treasurer to review the Investment policies and comments, prior to submission to the City Council for their consideration. The Investment Policies shall be adopted by resolution of the City of La Quinta City Council on an annual basis. The Investment Policies will be adopted before the end of June of each year. AB 943 requires that the Investment Policies be sent to the California Debt and Investment Advisory Commission within sixty days of a change to the Investment Policy. fXX MAX/MUM MA TURI T/ES ft is the policy of the City of La Quinta to hold securities and other investments in cash in financial instruments until maturity, thus avoiding the risk that the market value on investments fluctuates with overall market interest rates. The hold until iu: activities. The City of La Quinta Investment Advisory Board has elected to report the investment activities to the City Council on a monthly basis through the Treasurers Report. AB 943 requires that the December 315t and June 30th Treasurers Reports be sent to the California Debt and Advisory Commission within sixty days of the end of the quarter. The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment Advisory Board that includes all cash and investments under the authority of the Treasurer. The Treasurers Report shall summarize cash and investment activity and changes in balances and include the following: ► A certification by City Treasurer; ► A listing of Purchases and sales/maturities of investments; ► Cash and Investments categorized by authorized investments, except for LAIF which will be provided quarterly and show yield and maturity; ► Comparison of month end actual holdings to Investment Policy limitations; ► Current year and prior year monthly history of cash and investments for trend analysis; ► Balance Sheet; ► Distribution of cash and investment balances by fund; ► A comparison of actual and surplus funds; ► A year to date historical cash flow analysis and projection for the next six months; ► A two year list of historical interest rates. XVI INVESTMENT OF BOND PROCEEDS The City's Investment Policy shall govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's Investment Policy. Arbitrage Requirement The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. This arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the new arbitrage 17 maturity policy shall not prevent the sale of a security to minimize loss of principal when the issuer or backer suffers declining credit worthiness. The hold until maturity policy requires that the City of La Quinta 's investment portfolio is structured so that sufficient funds are available from maturing investments and other sources to meet anticipated cash needs. To meet anticipated cash needs, it is essential that the the Treasurer have reasonably accurate, diligently prepared cash flow projections. Annually, the Treasurer shall project the amount of funds not expected to be disbursed within five years. For FY 2002103, the amount of such funds was $10 million. Funds up to that amount may be invested in U.S. Treasury bills, notes and bonds maturing between 2 and 5 years. For ay other funds, investments are limited to two years maximum maturity. 19 Appendix A g CL 6 0 N + 0 O N A W N IJe j 3 <J 3 D O N O J. a H N m Ip m] N ]Ie a.aQ M mn<�3 < vJ d {p a3J O y3-m lyn me a� nO= c a C g m. w N 3 N N y n,N N m tD0 W C a J N a p °3 ScN• c0 '�^m SB. may omaN m3 0 05 a' Qmm 13o3 T a J dry N m N n 2 J J J N ,< N C �. J J F a :E. O J C O ID y m 3 NJm cro < n ma o'°l- N�'c J vc Semi rJ 03 c 3 ' al N :.' _ g.A.. J C, E a r, <°ao ID a. MR mo 0.p Q N j fD N O �i B N y .... �. o3Jran0 mO= = m `°m D O N a 3 yg m =. mo r m aaof= sv� ymmn_„ o� a� J 05 n d J J G m m o w O O 0 m rot 61 o O J m a Imn v N o m a n a m o' is 3 0 O m n .� m N m ct o°< n^ 3 gm m 3 a N GID 3J1°6i ay av ^3 10 oD K m NQ1 m O 4 M 3mJ" W d a w e m a n 3 J M � m o � � Qo g m a c D c O F v_ Z m m O) n O I r C n N 3 C 0 -' D m':E3 om In n c 3 c °° m v a c oo3meroy�Q3 m 3 m a 3 ^ 0 3 O m N m p m 3 M c m°i Ip 3 w rand rol a� N o�'� a y a D J y m o �I`Je: m o a T o3nz"o�emai am F a Z J J N L 010 00 d T r A N M o N a °1.W�Nc°iy N S ° m _ on T c2im °�OV=�'�3m oo y omi T a uai vci< -�� in@� a� rp N Td.Q O 0 n �' to 0 N O a m Tm 2>"F 3 D °_ Z 3 N m m N O n m o^ n mm Hm ax m� o a 30 nv_ L.0 @ m � 3. w N v O 0 > m m d d N `a m a ° c J N O O ° C N O C el 0 W N Ili N p T n" a a2° N o0 0 Coa° o e ° � o D yo0 0 yo0 00000coo 0o 0 0o� 0 0 0 30 aao N O o_ O aoQ T O o0 0 000 O 0 0 O O p p 0 0 o o 0 o N N c �1 O T ° 0 0 0 0 0 0 H O ° O ° O O O O T X C o ° o ° o ` o o o` O y a 3 C v O C O N F Imo I f•. O O n ° O IrJ O O O O O O O O to j C p�j m< cn of >< m m o m O E v O m C > > N ` O 3 m • N N y eSj m a • a c ^, _ N y V O N O YI J p 00 N b tl1 N m I/' N N N N N L 3 m � GI w� N' No W � W d 0 0 m d y C e) y J � n N MCL O O O Q N T 'n n m N o c 6 I D Q. n a O m o a 0 S 3 p m Q a 3 0 N 3.a K 'm 3 3 WE Appendix B Chapter 2.70 INVESTMENT ADVISORY BOARD PROVISIONS Sections: 2.70.010 General Rules Regarding Appointment. 2.70.020 Board meetings. 2.70.030 Board functions. 2.70.010 General rules regarding appointment A. Except as set out below, see Chapter 2.06 for General Provisions. B. The Investment Advisory Board (the "board") is a standing board composed of seven (7) members from the public that are appointed by city council. La Quinta residency is preferred, but not a requirement for board members. Recruitment for members may be advertised outside of the city". C. Background in the investment field and/or related experience is preferred. Background information will be required and potential candidates must agree to a background check and verification. D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants, each board member will provide the City Council with a disclosure statement which identifies any matters that have a bearing on the appropriateness of that member's service on the board. Such matters may include, but are not limited to, changes in employment, changes in residence, or changes in clients. 2.70.020Board meetings. The Board usually will meet monthly, but this schedule may be extended to quarterly meetings upon the concurrence of the Board and the City Council. The specific meeting dates will be determined by the Board Members and meetings may be called for on an as needed basis. 2.70.030Board functions. 1. The principal functions of the Board are: (1) review at least annually the City's Investment Policy and recommend appropriate changes; (2) review monthly Treasury Report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet with the independent auditor after completion of the annual audit of the City's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use or change of financial institutions, custodians, brokers and dealers. 2. The Board will report to the City Council after each meeting either in person or through correspondence at a regular City Council meeting. 21 Appendix C Chapter 3.08 INVESTMENT OF MONEYS AND FUNDS Sections: 3.08.010 Investment of city moneys and deposit of securities. 3.08.020 Authorized investments. 3.08.030 Sales of securities. 3.08.040 City bonds. 3.08.050 Reports. 3.08.060 Deposits of securities. 3.08.070 Trust fund administration. 3.08.010 Investment of city moneys and deposit of securities. Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607 and 53608 of the Government Code, the authority to invest and reinvest moneys of the city, to sell or exchange securities, and to deposit them and provide for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982) 3.08.020 Authorized investments. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to purchase, at their original sale or after they have been issued, securities which are permissible investments under any provision of state law relating to the investing of general city funds, including but not limited to Sections 53601 and 53635 of the Government Code, as said sections now read or may hereafter be amended, from moneys in his custody which are not required for the immediate necessities of the city and as he may deem wise and expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part), 1982) 3.08.030 Sales of Securities. From time to time the city treasurer shall sell the securities in which city moneys have been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied to the purchase for which the original purchase money may have been designated or placed in the city treasury. (Ord. 2 § I (part), 3.08.040 City bonds. Bonds issued by the city and purchased pursuant to this chapter may be canceled either in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided, however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 § 1 (part), 1982) 22 3.08.050 Reports. The city treasurer shall make a monthly report to the city council of all investments made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982) 3.08.060 Deposits of securities. Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized to deposit for safekeeping, the securities in which city moneys have been invested pursuant to this chapter, in any institution or depository authorized by the terms of any state law, including but not limited to Section 53608 of the Government Code as it now reads or may hereafter be amended. In accordance with said section, the city treasurer shall take from the institution or depository a receipt for the securities so deposited and shall not be responsible for the securities delivered to and receipted for by the institution or depository until they are withdrawn therefrom by the city treasurer. (Ord. 2 § 1 (part), 1982 3.08.070 Trust fund administration. Any departmental trust fund established by the city council pursuant to Section 36523 of the Government Code shall be administered by the city treasurer in accordance with Section 36523 and 26524 of the Government code and any other applicable provisions of law. (Ord. 2 § 1 (part), 1982) 23 Appendix D SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Responsibilities Develop formal Investment Policy City Treasurer Recommend modifications to Investment Policy Investment Advisory Board Review formal Investment Policy and recommend City Manager and City Council action City Attorney Adopt formal Investment Policy City Council Review Financial Institutions & Select Investments City Treasurer Approve investments City Manager or Assistant City Manager Execute investment transactions City Manager or Treasurer Confirm wires, if applicable City Manageir er Accounting Manager or Financial Services Assistant Record investment transactions in City's accounting records Accounting Manager or Financial Services Assistant Investment verification - match broker confirmation to City investment records Aerount TeGhnoGoan City Treasurer and Financial Services Assistant Reconcile investment records - to accounting records and bank statements Areeunt TeWmician Financial Services Assistant Reconcile investment records - to Treasurers Report of investments n,.,., unt Technkian Accounting Manager Security of investments at City Vault Security of investments Outside City Third Party Custodian Review internal control procedures External Auditor 24 Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1. Banking Services - Wells Fargo Bank, Government Services, Los Angeles, California 2. Custodian Services Bank of New York, Los Angeles, California 3. Deferred Compensation - International City/County Management Association Retirement Corporation 4. Broker/Dealer Services - Merrill Lynch, Indian Wells, CA Morgan Stanley Dean Wittef, Los Angeles, California Salomon Smith Barney, Newport Beach, CA 5. Government Pool - State of California Local Agency Investment Fund City of La Quinta Account La Quinta Redevelopment Agency 6. Bond Trustees - 1991 City Hall Revenue Bonds - US Bank 1991 RDA Project Area 1 -US Bank 1992 RDA Project Area 2 - US Bank 1994 RDA Project Area 1 -US Bank 1995 RDA Project Area 1 &2 - US Bank 1998 RDA Project Area 1&2 - US Bank 2001 RDA Project Area 1 - US Bank Assessment Districts - US Bank No Changes to this listing may be made without City Council approval 25 1 2 3 4 5. 0 7. Q Appendix F BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION Name of Firm: Address: Telephone: Broker's Representative to the City (attach resume): Name: Title: Telephone: (_) Manager/Partner-in-charge (attach resume): Name: Title: Telephone: List all personnel who will be trading with or quoting securities to City employees (attach resume) Name: Title Telephone: Which of the above personnel have read the City's Investment Policy? Which instruments are offered regularly by your local office? (Must equal 100%) % U.S. Treasuries % BA's % Commercial Paper % CD's % Mutual Funds % Agencies (specify): 26 % Repos % Reverse Repos % CMO's % Derivatives • Stocks/Equities • Other (specify): 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Contact Telephone Client Since Entity Contact Telephone Client Since 10. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. 11 12. Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. Has a client ever claimed in writing that you were responsible for an investment loss? Yes No If yes, please provide action taken Has a client ever claimed in writing that your firm was responsible for an investment loss? Yes No If yes, please provide action taken 27 Do you have any current, or pending complaints that are unreported to the NASD? Yes No If yes, please provide action taken Does your firm have any current, or pending complaints that are unreported to the NASD? Yes No If yes, please provide action taken 13. Explain your clearing and safekeeping procedures, custody and delivery process. Who audits these fiduciary responsibilities? Latest Audit Report Date 14. How many and what percentage of your transactions failed. Last month? % $ Last year? % $ 15. Describe the method your firm would use to establish capital trading limits for the City of La Quinta. 16. Is your firm a member in the S.I.P.C. insurance program. Yes If yes, explain primary and excess coverage and carriers. 17. What portfolio information, if any, do you require from your clients? No 18. What reports and transaction confirmations or any other research publications will m the City receive? 19. Does your firm offer investment training to your clients? Yes No 20. Does your firm have professional liability insurance. Yes No If yes, please provide the insurance carrier, limits and expiration date. 21. Please list your NASD Registration Number 22. Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department 23. Do you maintain an office in California. Yes No 24. Do you maintain an office in La Quinta or Riverside County? Yes No 25. Please enclose the following: • Latest audited financial statements. • Samples of reports, transaction confirmations and any other research/publications the City will receive. • Samples of research reports and/or publications that your firm regularly provides to clients. • Complete schedule of fees and charges for various transactions. 'CERTIFICATION' * CERTIFICATION I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document the City of La Quinta is authorized to conduct any and all background checks. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. 29 Broker Date Representative Title Sales Manager and/or Managing Partner* Date Title 30 Appendix G INVESTMENT POOL QUESTIONNAIRE Note: This Investment Pool Questionnaire was developed by the Government Finance Officers Association (GFOA). Prior to entering a pool, the following questions and issues should be considered. SECURITIES Government pools may invest in a broader range of securities than your entity invests in. It is important that you are aware of, and are comfortable with, the securities the pool buys. 1. Does the pool provide a written statement of Investment Policy and objectives? 2. Does the statement contain: a. A description of eligible investment instruments? b. The credit standards for investments? c. The allowable maturity range of investments? d. The maximum allowable dollar weighted average portfolio maturity? e. The limits of portfolio concentration permitted for each type of security? f. The policy on reverse repurchase agreements, options, short sales and futures? 3. Are changes in the policies communicated to the pool participants? 4. Does the pool contain only the types of securities that are permitted by your Investment Policy? INTEREST Interest is not reported in a standard format, so it is important that you know how interest is quoted, calculated and distributed so that you can make comparisons with other investment alternatives. Interest Calculations 1. Does the pool disclose the following about yield calculations: a. The methodology used to calculate interest? (Simple maturity, yield to maturity, etc.) b. The frequency of interest payments? c. How interest is paid? (Credited to principal at the end of the month, each quarter; mailed?) d. How are gains/losses reported? Factored monthly or only when realized? 31 REPORTING 1. Is the yield reported to participants of the pool monthly? (If not, how often?) 2. Are expenses of the pool deducted before quoting the yield? 3. Is the yield generally in line with the market yields for securities in which you usually invest? 4. How often does the pool report, and does that report include the market value of securities? SECURITY The following questions are designed to help you safeguard your funds from loss of principal and loss of market value. 1. Does the pool disclose safekeeping practices? 2. Is the pool subject to audit by an independent auditor? 3. Is a copy of the audit report available to participants? 4. Who makes the portfolio decisions? 5. How does the manager monitor the credit risk of the securities in the pool? 6. Is the pool monitored by someone on the board of a separate neutral party external to the investment function to ensure compliance with written policies? 7. Does the pool have specific policies with regards to the various investment vehicles? a. What are the different investment alternatives? b. What are the policies for each type of investment? 8. Does the pool mark the portfolio to its market value? 9. Does the pool disclose the following about how portfolio securities are valued: a. The frequency with which the portfolio securities are valued? b. The method used to value the portfolio (cost, current value, or some other method)? 32 OPERA TIONS The answers to these questions will help you determine whether this pool meets your operational requirements: 1. Does the pool limit eligible participants? 2. What entities are permitted to invest in the pool? 3. Does the pool allow multiple accounts and sub -accounts? 4. Is there a minimum or maximum account size? 5. Does the pool limit the number of transactions each month? What is the number of transactions permitted each month? 6. Is there a limit on transaction amounts for withdrawals and deposits? a. What is the minimum and maximum withdrawal amount permitted? b. What is the minimum and maximum deposit amount permitted? 7. How much notice is required for withdrawals/deposits? 8. What is the cutoff time for deposits and withdrawals? 9. Can withdrawals be denied? 10. Are the funds 100% withdrawable at anytime? 11. What are the procedures for making deposits and withdrawals? a. What is the paperwork required, if any? b. What is the wiring process? 12. Can an account remain open with a zero balance? 13. Are confirmations sent following each transaction? STA TEMENTS It is important for you and the agency's trustee (when applicable), to receive statements monthly so the pool's records of your activity and holding are reconciled by you and your trustee. 33 1 . Are statements for each account sent to participants? a. What are the fees? b. How often are they passed? c. How are they paid? d. Are there additional fees for wiring funds (what is the fee)? 2. Are expenses deducted before quoting the yield? QUESTIONS TO CONSIDER FOR BOND PROCEEDS It is important to know (1) whether the pool accepts bond proceeds and (2) whether the pool qualifies with the U.S. Department of the Treasury as an acceptable commingled fund for arbitrage purposes. 1. Does the pool accept bond proceeds subject to arbitrage rebate? 2. Does the pool provide accounting and investment records suitable for proceeds of bond issuance subject to arbitrage rebate? 3. Will the yield calculation reported by the pool be acceptable to the IRS or will it have to be recalculated? 4. Will the pool accept transaction instructions from a trustee? 5. Are you allowed to have separate accounts for each bond issue so that you do not commingle the interest earnings of funds subject to rebate with funds not subject to regulations? 34 Appendix H GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government -sponsored enterprises. ASKED: The price at which securities are offered BANKERS' ACCEPTANCE (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large -denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. 35 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. 3 DISCOUNT SECURITIES: Non -interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. 1. FNMAs (Federal National Mortgage Association) - Used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued in various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. 2. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage -lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. The Other federal agency issues are Small Business Administration notes (SBAs), Government National Mortgage Association W. bonds are issued with various maturities and carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis. FLBs (Federal Land Bank Bonds) - Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360-day, 30 day month basis. 4. FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. 5. FICBs (Federal Intermediate Credit bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine -month maturity. Interest is payable at maturity and is calculated on a 360- day, 30-day month basis. 6. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. notes (GNMAs), Tennessee Valley Authority notes (TVAs), and Student Loan Association notes (SALLIE-MAEs). FEDERAL DEPOSITOR INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open - market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: the central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. 37 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "passthroughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $ 5,000, in multiples of $1,000 above that, with a maximum balance of $30,000,000 for any agency. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one -quarter of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase --reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the vent of default by the seller -borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable MONEY MARKET: The market in which short- term debt instruments (bills, commercial paper, banders' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity an depositions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -registered securities broker -dealers, banks and a few unregulated firms. SECONDARY MARKET: A market made for the 0-11 QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A repurchase agreement is a short-term investment transaction. Banks buy temporarily idle funds from a customer by selling U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date. Repurchase agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal funds and the maturity of the repo. Some banks will execute repurchase agreements for a minimum of $100,000 to $500,000, but most banks have a minimum of $1,000,000. REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo) - A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RRP extensively to finance their positions. Exception: When the Fed is said to be doing RRP, it is lending money, that is, increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMAS, SLMA, etc.) And Corporations which have imbedded options (e.g., call features, step- up coupons, floating rate coupons, derivative - based returns) into their debt structure, Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the Shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non -interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. TREASURY BONDS: Long-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium -term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. K&7 Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par of plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.