The objectives of this investment and deposit policy and procedure are
three-fold:
A. Investments and bank deposits (hereafter collectively
referred to as "investments") shall be made in a manner so as to safeguard
the funds of the municipality.
B. Investments shall be sufficiently liquid so as to allow
funds to be available as needed to meet the obligations of the municipality.
C. Funds shall be invested in such a way as to earn the
maximum yield possible given the first two investment objectives.
The municipality, upon the recommendation of the Director of Finance,
shall annually designate authorized depositories for funds of the municipality.
These depositories shall only be commercial banks authorized to conduct business
in the State of New York. Each authorized depository shall execute a security
agreement, which will provide that collateral is being pledged by the bank
as security for the municipality's deposits. Each authorized custodial
bank or trust company shall execute a custodial agreement. This agreement
must acknowledge that the pledged collateral is being held by the custodian
bank or trust company as agent of and custodial for the municipality. The
depository and custodian may be the same bank or trust company.