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 Town'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 Town Board's responsibility for administration of the
investment program is delegated to the Supervisor, who shall supervise
the operation of the investment program consistent with these investment
guidelines. Such supervision shall include adequate internal controls
to provide a satisfactory level of accountability based on a database
or records incorporating description and amounts of investments, transaction
date and other relevant information and to regulate the activities
of subordinate employees.
It is the policy of the Town of LeRay to diversify its deposits
and investments by financial institution, by investment instrument
and by maturity scheduling.
The banks and trust companies authorized for the deposit of
monies up to the maximum amounts are:
Depository Name
|
Maximum Amount
|
Officer
|
---|
First Niagara Bank, N.A.
|
$8,000,000
|
Supervisor
Town Clerk/Receiver
Town Justices
|
Community Bank, N.A.
|
$5,000,000
|
Supervisor
Town Clerk/Receiver
Town Justices
|
JPMorgan Chase Bank
|
$5,000,000
|
Supervisor
Town Clerk/Receiver
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of LeRay, including certificates of deposit
and special time deposits, in excess of the amount insured under the
provision 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 listed below:
(1) Obligations issued, or fully insured or guaranteed as to the payment
of principal and interest, by the United States of America, an agency
thereof or a United States government-sponsored corporation.
(2) Obligations partially insured or guaranteed by any agency of the
United States of America, at a proportion of the market value of the
obligation that represents the amount of the insurance or guaranty.
(3) Obligations issued or fully insured or guaranteed by the State of
New York, obligations issued by a municipal corporation, school district
or district corporation of such state or obligations of any public
benefit corporation which, under a specific state statute, may be
accepted as security for deposit of public moneys.
(4) Zero coupon obligations of the United States government marketed
as "Treasury strips."
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 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 Town 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 Town of LeRay 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 Town
conducts business must be credit worthy. Banks shall provide their
most recent Consolidated Report of Condition (call report) at the
request of the Town of LeRay. 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 Supervisor
is responsible for evaluating the financial position and maintaining
a listing of proposed depositories, 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.