Custodial Credit Risk – Deposits.
Custodial credit risk is the risk that in the event of a financial institution failure, the city’s deposits may not be returned. The city’s investment policy requires that all deposits be federally insured or fully collateralized.
State of Georgia law limits investments to include certificates of deposit, repurchase agreements, direct and agency obligations of the United States, obligations of any corporation of the United States government, obligations of the State of Georgia or other states, obligations of other political subdivisions of the State of Georgia, and pooled investment programs of the State of Georgia. The city has no investment policy that would further limit its investment choices.