[HISTORY: Adopted by the Borough Council of the Borough of
Middletown 5-4-1981 by Ord. No.
796, approved 5-4-1981. Amendments noted where applicable.]
The Pennsylvania Local Government Investment Trust, a nonprofit
entity designed by the Pennsylvania State Association of Boroughs
as a common law trust, has been formed, in accordance with the authorization,
pursuant to Article 9, Section 5, of the Pennsylvania Constitution,
contained in the Intergovernmental Cooperation Act of July 12, 1972,
P.L. 762 (53 P.S. § 481 et seq.),[1] initially by the Boroughs of Chambersburg and Emmaus.
The Declaration of Trust of 23 pages, dated as of February 1, 1981,
is herein incorporated by reference with the same effect as if it
had been set out verbatim in this and subsequent sections, and a copy
shall be filed with the minutes of the Council, along with a copy
of the sixteen-page information statement dated March 11, 1981. The
Trust has received a no-action letter from the Securities and Exchange
Commission. This will make available a convenient method of making,
if and when desired, temporary investments with advantageous liquidity,
higher yield and clear audit trail, all within the safeguards and
authority of Act No. 94 of November 2, 1979, P.L. 458 (53 P.S. § 46316).[2]
Said Declaration of Trust is hereby adopted, and the Borough
of Middletown now becomes a settlor of the Pennsylvania Local Government
Investment Trust. In compliance with Section 7 of the aforesaid Intergovernmental
Cooperation Act, it is specified that:
A.
The
agreement, conditions and terms of such intergovernmental cooperation
appear in the Declaration of Trust and information statement aforesaid.
B.
At
any time, by ordinance, this Borough may terminate its participation.
C.
The
purpose of the Declaration of Trust and of the purchase of shares
thereunder is to invest Borough funds in obligations which are otherwise
legal investments for the Borough as part of a pooled arrangement
with other governmental units in order to achieve economic and other
advantages of pooled investment.
D.
Financing
is not necessary (except through the purchase of shares from Borough
funds at the discretion of the Borough), and the cost is an indirect
cost as a percentage of daily interest yield as specified.
E.
Organizational
structure is in terms of management by a Board of Trustees as set
forth in the Declaration of Trust and in the bylaws therein provided
for.
F.
Property
management, as it concerns this Borough, shall consist of discretionary
purchase of shares from time to time and redemption thereof as necessary
to meet the cash needs of the Borough.
The Administrative Officer of the Borough of Middletown is authorized
to purchase shares of the Trust from Borough funds and to redeem shares
from time to time under general or specific instructions by the Council.
Custody of funds represented by any shares thus purchased shall be
vested in the trustees of the Pennsylvania Local Government Investment
Trust.
