[HISTORY: Adopted by the Town Board of the Town of Forestburgh 1-7-1992.
Amendments noted where applicable.]
The objectives of this investment policy of the Town of Forestburgh
are to provide reasonable assurance that the assets of the Town are safeguarded,
investments made by the Town will mature when cash is required to finance
operations, and a competitive rate of return will be realized on the Town's
investments.
A.
In pursuance of the foregoing objectives, the Supervisor
is hereby authorized to invest all funds, including the proceeds of obligations
and reserve funds, in:
B.
All other Town officials receiving money in their official
capacity shall, if required by resolution of the Town Board, deposit such
funds in Negotiable Order of Withdrawal (NOW) accounts.
All investments made pursuant to this policy shall comply with the following
conditions:
A.
Collateral. Certificates of deposit and other bank accounts
shall be fully secured by insurance of the Federal Deposit Insurance Corporation
(FDIC) or by obligations of New York State or the United States or obligations
of federal agencies, the principal and interest of which are guaranteed by
the United States, or obligations of local governments of the State of New
York. Collateral shall be delivered to the Town or to the custodial bank with
which the Town has entered into a custodial agreement. The market value of
the collateral shall at all times equal or exceed the principal amount of
the certificates of deposit and other bank accounts. Collateral shall be monitored
monthly.
B.
Delivery of securities. Every repurchase agreement shall
provide for payment to the seller only upon the seller's delivery of the authorized
obligation to the designated custodial bank. The seller shall not be entitled
to substitute securities, which requirement shall be so stated in the repurchase
agreement. Repurchase agreements shall be for periods of not less than 10
days and not more than 45 days. The custodial bank shall confirm all transactions
in writing to insure that the Town's ownership of the securities is properly
reflected on the records of the custodial bank.
C.
Written contracts. All repurchase agreements and custodial
undertakings must be in writing.
D.
Designation of custodial banks. Custodial banks shall
be designated by the official depositories of the Town. Each banking institution
shall have on file with the Town a three-party custodial agreement specifying
the obligations of the custodial bank. However, securities may not be purchased
through a repurchase agreement with a custodial bank.
E.
Financial strength of institutions. All trading partners
must be creditworthy. They must be a member of the Federal Deposit Insurance
Corporation. The Supervisor will request a copy of the annual audited financial
report used to establish each institution's creditworthiness, or the Supervisor
may rely upon information made available by recognized credit rating agencies.
A.
The Supervisor shall authorize the purchase and sale
of all securities, executed contracts for repurchase agreements and certificates
of deposit on behalf of the Town, unless a contrary requirement is imposed
by resolution of the Town Board.
B.
The purchase and sale of securities and certificates
of deposit shall be accomplished through a competitive process involving telephone
solicitation of at least two bids for each transaction.
C.
The provisions of this policy and any amendments hereto
shall take effect prospectively, and shall not invalidate the prior selection
of any custodial bank or prior investments of the Town.
A.
In the event the Supervisor receives recommendations
through private or state audits regarding the Town's investment policy, such
recommendations shall be discussed and considered by the Town Board.
B.
The Town Board shall at least annually, at its reorganization
meeting, review and if necessary, amend the investment policy.
The foregoing investment policy was established by the Town of Forestburgh
pursuant to a resolution duly adopted on January 7, 1992.
