[HISTORY: Adopted by the Town Board of the Town of Marlborough 2-28-1994. Amendments noted where applicable.]
GENERAL REFERENCES
Purchasing — See Ch. 38.
This investment policy applies to all moneys and other financial resources available for investment on its own behalf or by any other entity or individual.
The primary objectives of local governments' investment activities are, in priority order, to:
A. 
Conform to all applicable federal, state and other legal requirements.
B. 
Safeguard principal adequately.
C. 
Provide sufficient liquidity to meet all operating requirements.
D. 
Obtain a reasonable rate of return.
The Town Board's responsibility for administration of the investment process is delegated to the Town Supervisor, as Treasurer, who shall establish written procedures for the operation of the investment program consistent with these investment guidelines. Such procedures shall include a data base incorporating description and amounts of information and to regulate the activities of subordinate employees.
Investments shall be made with judgment and care, not for speculation, but for investments, considering the safety of the principal as well as the probable income to be derived.
It is the policy of the Town Board to diversify its deposits and investments by financial institutions, by investment instrument and by maturity scheduling.
A. 
It is the policy of the Town Board for all moneys collected by any officer or employee of the government to transfer those funds to the Treasurer within three (3) 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 in compliance with applicable laws and regulations.
The bank and trust companies authorized for deposit of moneys up to the following amounts are:
A. 
Key Bank of South East New York: maximum amount one million five hundred thousand dollars ($1,500,000.).
B. 
M & T Bank: maximum amount one million five hundred thousand dollars ($1,500,000.).
C. 
First National Bank of Rhinebeck: maximum amount one million five hundred thousand dollars ($1,500,000.).
A. 
In accordance with the provisions of General Municipal Law § 10, all deposits of the Town of Marlborough, including certificates of deposit and special time deposits, in excess of the amounts insured under the provisions of the Federal Deposit Insurance Act shall be secured by a pledge of eligible securities with an aggregate market value equal to the aggregate amount of deposits.
B. 
Eligible securities used for collateralizing deposits shall be held by the depository and/or a third-party bank or trust company subject to security and custodial agreements.
C. 
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 Town of Marlborough or its custodial bank.
D. 
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 of 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 Town of Marlborough 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 deposit.
(3) 
Obligations guaranteed by agencies of the United States of America where the payment of principal and interest are guaranteed by the United States of America.
(4) 
Obligations of the State of New York.
B. 
All investment obligations shall be payable or redeemable at the option of the Town of Marlborough 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 Town of Marlborough within two (2) years of the date of purchase.