§ 2-146. Prohibited transactions.

The following transactions are expressly prohibited:

(1)

Any transactions not authorized by this policy.

(2)

The purchase of securities on margin.

(3)

Direct purchases of single family or commercial mortgages.

(4)

Purchases of foreign bonds.

(5)

The short sale of securities.

(6)

As provided in R.S. 33:2955(A)(1)(b)(iii), investment in obligations issued or guaranteed by federal agencies or U.S. government instrumentalities which are collateralized mortgage obligations that have been stripped into interest only or principal only obligations, inverse floaters or structured notes. The term "structured note" means securities of U.S. government agencies, instrumentalities or government-sponsored enterprises which have been restructured, modified and/or reissued by private entities. Any investments which were made prior to August 15, 1995, and which are now prohibited investments shall be monitored on a monthly basis by the city clerk and disposed by the city when, upon recommendation of the city clerk after a review of the solvency of the funds and the investment climate, it is prudent to do so.

(Ord. No. 924, 4-8-96)