Senior Account Clerk obtains collateral information from the bank and records the information into the Foreign Bankers Acceptances Collateral Log. The Treasury Assistant checks the log perodically to verify the log's completeness. The Treasury Assistant and Staff Analyst verify the issuing corporation's outstanding commercial paper in Moody's before purchasing the issuer's commercial paper. Staff verifies the information about a particular security in Moody's, fact sheets from the dealers, Duff and Phelps, or Fitch before placing the investment. The calculations for computing the value of collateral are recorded on the back of the rough draft of the confirmation.
Staff conduct a second price check at mid-morning and request additional collateral if necessary.
Collateral is recorded on the face of the confirmation rough draft. Treasury staff verifies that the collateral being proposed by the other party is Treasuries or Agencies as outlined in the Investment Policy. C-39 Treasury maintains an updated list from the Federal Reserve Bank to verify current reporting dealers. Written notification confirming the substitution is sent to the bank within 5 working days. All collateral is safekept by a bank with which the City has established a safekeeping account.