This investment policy 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 to all applicable federal, state and other legal requirements
(legality).
B. To adequately safeguard principal (safety).
C. To provide sufficient liquidity to meet all operating requirements
(liquidity).
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 of investments, transaction dates and other
relevant information and regulate the activities of subordinate employees.
It is the policy of the Village of Woodridge to diversify its
deposits and investments by financial institution, by investment instrument
and by maturity scheduling.
The banks and trust companies authorized for the deposit of
moneys up to the maximum amounts are Ellenville National Bank and
Bank of New York.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Village of Woodridge, including certificates of
deposit 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
the policy.
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.
The Village of Woodridge shall maintain a list of financial
institutions and dealers approved for investment purposes and establish
appropriate limits to the amount of investments which can be made
with each financial institution or dealer. All financial institutions
with which the local government conducts business must be credit worthy.
Banks shall provide their most recent Consolidated Report of Condition
(Call Report) at the request of the Village of Woodridge. Security
dealers not affiliated with a bank shall be required to be classified
as reporting dealers affiliated with the New York Federal Reserve
Bank, as primary dealers. The Treasurer is responsible for evaluating
the financial position and maintaining a listing of proposed depositaries,
trading partners and custodians. Such listing shall be evaluated at
least annually.
Repurchase agreements are authorized subject to the following
restrictions:
A. All repurchase agreements must be entered into subject to a master
repurchase agreement.
B. Trading partners are limited to banks or trust companies authorized
to do business in New York State and primary reporting dealers.
C. Obligations shall be limited to obligations of the United States
of America and obligations guaranteed by agencies of the United States
of America.
D. No substitution of securities will be allowed.
E. The custodian shall be a party other than the trading partner.