[HISTORY: Adopted by the Board of Trustees
of the Village of Tivoli 2-12-1996. Amendments noted where applicable.]
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:
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.
A.
All participants in the investment process shall seek
to act responsibly as custodians of the public trust and shall avoid
any transaction that might impair public confidence in the Village
of Tivoli to govern effectively.
B.
Investments shall be made with judgment and care,
under circumstances then prevailing, which persons of prudence, discretion
and intelligence exercise in the management of their own affairs,
not for speculation, but for investment, considering the safety of
the principal, as well as the probable income to be derived.
C.
All participants involved in the investment process
shall refrain from personal business activity that could conflict
with proper execution of the investment program or which could impair
their ability to make impartial investment decisions.
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.
A.
It is the policy of the Village of Tivoli for all
moneys collected by any officer or employee of the government to transfer
those funds to the Treasurer with five business days of deposit or
within the time period specified in law, whichever is shorter.
B.
The Treasurer is responsible for establishing and
maintaining an internal control structure to provide reasonable, but
not absolute, assurance that deposits and investments are safeguarded
against loss from unauthorized use or disposition and that transactions
are executed in accordance with management's authorization and recorded
properly and are managed in compliance with applicable laws and regulations.
[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:
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.
A.
Eligible securities used for collateralizing deposits
shall be held by M & T Bank, or the trust and investment bank
or trust company subject to security and custodial agreements.
B.
The security agreement shall provide that eligible
securities are being pledged to secure local government deposits,
together with agreed upon interest, if any, and any costs or expenses
arising out of the collection of such deposits upon default. It shall
also provide the conditions under which the securities may be sold,
presented for payment, substituted or released and the events which
will enable the local government to exercise its rights against the
pledged securities. In the event that the securities are not registered
or inscribed in the name of the local government, such securities
shall be delivered in a form suitable for transfer or with an assignment
in blank to the Village of Tivoli or its custodial bank.
C.
The custodial agreement shall provide that securities
held by the bank or trust company, or agent of and custodian for the
local government, will be kept separate and apart from the general
assets of the custodial bank or trust company and will not, in any
circumstances, be commingled with or become part of the backing for
any other deposit or other liabilities. The agreement should also
describe that the custodian shall confirm the receipt, substitution
or release of the securities. The agreement shall provide for the
frequency or revaluation of eligible securities and for the substitution
of securities when a change in the rating of a security may cause
ineligibility. Such agreement shall include all provisions necessary
to provide the local government a perfected interest in the securities.
A.
As authorized by General Municipal Law § 11,
the Village of Tivoli authorizes the Treasurer to invest moneys not
required for immediate expenditure for terms not to exceed its projected
cash flow needs in the following types of investments:
(1)
Special time deposit accounts.
(2)
Certificates of Participation (COP's) issued pursuant
to General Municipal Law § 109-b.
(3)
Obligations of this local government, but only with
any moneys in a reserve fund established pursuant to General Municipal
Law §§ 6-c, 6-d, 6-e, 6-g, 6-h, 6-j, 6-k, 6-l, 6-m,
or 6-n.
B.
All investment obligations shall be payable or redeemable
at the option of the Village of Tivoli within such times as the proceeds
will be needed to meet expenditures for purposes for which the moneys
were provided and, in the case of obligations purchased with the proceeds
of bonds or notes, shall be payable or redeemable at the option of
the Village of Tivoli within two years of the date of purchase.
