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15 <br />This standard of prudence shall be applied in the context of managing the overall portfolio. The <br />Financial Services Director, acting in accordance with North Carolina General Statues, this <br />policy, and written administrative procedures and exercising due diligence shall be relieved of <br />personal responsibility for an investment credit risk, provided deviations from expectations are <br />reported in a timely fashion and appropriate action is taken to control adverse developments. <br />ETHICS AND CONFLICTS OF INTEREST <br />To avoid the appearance of potential conflict of interest or favoritism to a particular bank or <br />broker, the Financial Services Director or any delegate employee who has investment <br />responsibilities, shall make full disclosure to the County Manager of any relationship or <br />dealings with any financial institution that has business dealings with the County. This <br />disclosure need not include normal banking or brokerage relationships that are at normal <br />market rates and conditions available to the general public. Investment officials of banks and <br />other institutions shall be familiar with N.C. General Statutes and County policy regarding gifts <br />and favors and shall act accordingly. <br />STATUTORY AUTHORIZATION <br />The legal limitations of local government investments are .defined in N.C.G.S. 159-30. <br />Accordingly, the following classes of securities are indicative of the investments utilized by <br />Orange County: <br />A. Obligations of the United States or obligations fully guaranteed both as to principal and <br />interest by the United States. <br />B. Obligations of the Federal Financing Bank, the Federal Farm Credit Bank, the Bank for <br />Cooperatives, the Federal Intermediate Credit Bank, the Federal Land Banks, the. Federal <br />Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National <br />Mortgage Association, the Government National Mortgage Association, the Federal Housing <br />Administration, the Farmers Home Administration and the U.S. Postal Service. <br />C. Obligations of the State of North Carolina. <br />D. Bonds and notes of any North Carolina local government or public authority, subject. to such <br />restrictions as the Secretary of the Local Government Commission may impose. <br />E. Deposits at interest or purchase of certificates of deposit with any bank, savings and loan <br />association or trust company in North Carolina, provided such deposits or certificates of <br />deposit are fully collateralized. <br />F. Prime. quality commercial paper bearing the highest rating of at least one nationally <br />recognized rating service and not bearing a rating below the highest (A1, P1, F1) by any <br />nationally recognized rating service which rates the particular obligation. <br />2 <br />