This chapter applies to all moneys and other
financial resources available for investment on its own behalf or
on behalf of any other entity or individual.
The primary objectives of the local government's
investment activities are, in priority order:
A. To conform with all applicable federal, state and
other legal requirements (legal);
B. To adequately safeguard principal (safety);
C. To provide sufficient liquidity to meet all operating
requirements (liquidity); and
D. To obtain a reasonable rate of return (yield).
The governing board's responsibility for administration
of the investment program is delegated to the Treasurer, who shall
establish written procedures for the operation of the investment program
consistent with these investment guidelines. Such procedures shall
include an adequate internal control structure to provide a satisfactory
level of accountability based on a data base or records incorporating
description and amounts on investments, transaction dates and other
relevant information and regulate the activities of subordinate employees.
It is the policy of the Village of Tivoli to
diversify its deposits and investments by financial institution, by
investment instrument and by maturity scheduling.
[Amended 5-11-1998 by L.L. No. 1-1998]
The banks and trust companies authorized for
the deposit of moneys up to the maximum amounts are as follows:
A. First National Bank of the Hudson Valley.
In accordance with provisions of General Municipal
Law § 10, all deposits of the Village of Tivoli, including
certificates of deposits and special time deposits, in excess of the
amount insured under the provisions of the Federal Deposit Insurance
Act shall be secured:
A. By a pledge of eligible securities with an aggregate
market value, as provided by General Municipal Law § 10,
equal to the aggregate amount of deposits from the categories designated
in Appendix A to this chapter.
B. By an eligible irrevocable letter of credit issued
by a qualified bank, other than the bank with the deposits, in favor
of the government, for a term not to exceed 90 days, with an aggregate
value equal to 140% of the aggregate amount of deposits and the agreed
upon interest, if any. A "qualified bank" is one whose commercial
paper and other unsecured short-term debt obligations are rated in
one of the three highest rating categories by at least one nationally
recognized statistical rating organization or by a bank that is in
compliance with applicable federal minimum risk-based capital requirements.
C. By an eligible surety bond payable to the government
for an amount at least equal to 100% of the aggregate amount of deposits
and the agreed upon interest, if any, executed by an insurance company
authorized to do business in New York State, whose claims-paying ability
is rated in the highest rating category by at least two nationally
recognized statistical rating organizations.