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 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 Village 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 database 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 Great Neck Estates to diversify its
deposits and investments by financial institution, by investment instrument,
and by maturity scheduling.
The list of banks and trust companies authorized for the deposit of
moneys up to the maximum amounts is available in the Village Clerk's office.
In accordance with the provisions of the General Municipal Law § 10,
all deposits of the Village of Great Neck Estates, including certificates
of deposit and special time deposits, in excess of 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 Great Neck Estates 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 creditworthy. Banks shall provide their most recent
Consolidated Report of Condition (Call Report) at the request of the Village
of Great Neck Estates. 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 Village 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.