Custodies and Securities Lending Services

The vendor required to provide custodies and securities lending services for include:
1. Custody services
•    Create, maintain, and retain all records relating to securities held in custody in client accounts to meet the requirements and obligations under generally accepted accounting principles (GAAP). 
•    Possess internal accounting and administrative controls to ensure that the custodian is in compliance with applicable laws as it relates to investment transactions. 
•    Monitor and record the collection of funds in accounts maintained by the custodian on behalf of the city.
•    Provide monthly activity statements and reports for all accounts, including market value of all securities. 
•    The statement cut-off should be the last day of the month. 
•    Statements must be sent no later than the tenth business day of the following month and shall also be available electronically. 
•    Provide daily market valuations for all custodied securities. 
•    Auto send daily portfolio holdings reports to third party vendors such as bond analytic providers. 
•    Provide on-demand and real-time queries and reports via web portal access. 
•    Provide your system’s capabilities as it relates to data customization and how work processes can be automated.
2. Securities lending services
•    Enter into agreements with borrowers, subject to finance approval per the terms set forth in this RFP and the agreement between the city and the service provider; and negotiate fees with eligible borrowers to be paid to the service provider on behalf of the city. 
•    Deliver to eligible borrowers’ securities held in the city’s custodian clearing account, as selected by the service provider for securities lending. 
•    Receive from each borrower, at the time the securities are loaned, eligible collateral securities at a minimum value of 102% of the market value of the loaned securities and accrued interest, if any. 
•    Such collateral shall be held as security pursuant to the borrower's security lending agreement with the service provider.
•    Hold the collateral such that the city maintains a perfected interest on the collateral at all times.
•    Invest cash collateral consistent with the city's investment policy and investment guidelines. 
•    Upon termination of any loan, return the collateral securities to a borrower so long as the borrower is not in default and the service provider received the loaned securities from the borrower. 
•    Remit received and collected interest payments on loaned securities to the city receive and collect interest payments received on loaned securities and remit them to the city. 
•    Perform ongoing credit monitoring of the borrowers and collateral. 
•    Collect and remit securities lending fees from borrowers, as well as income earned on collateral investments. 
•    This should be net of fees agreed to by the city and service provider. 
•    Provide daily and monthly reporting of all securities lending activities to finance.
•    Provide credit ratings from Moody’s and standard and poor on securities held. 
•    Provide daily market price data on securities held. 
•    Provide accurate reports at fiscal year-end that comply with the governmental accounting standards board rule 28.