[HISTORY: Adopted by the Town Board of the Town of Sweden 11-23-1999[1] Amendments noted where applicable.]
[1]
Editor's Note: This resolution superseded former Ch. 26, Investment
Policy, adopted 3-23-1988.
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 of Sweden's investment activities
are, in priority order:
The Town Board's responsibility for administration of the investment
program is delegated to the chief fiscal officer, who shall establish written
procedures for the operation of the investment program consistent with these
investment guidelines. Such procedures shall include an adequate internal
control structure to provide a satisfactory level of accountability based
on a database or records incorporating a description and amounts of investments,
transaction dates, and other relevant information and regulate the activities
of subordinate employees.
A.
All participants in the investment process shall seek
to act responsibly as custodians of the public trust and shall avoid any transaction
that might impair public confidence in the Town of Sweden to govern effectively.
B.
Investments shall be made with judgment and care, under
circumstances then prevailing, which persons of prudence, discretion and intelligence
exercise in the management of their own affairs, not for speculation, but
for investment, considering the safety of the principal as well as the probable
income to be derived.
C.
All participants involved in the investment process shall
refrain from personal business activity that could conflict with proper execution
of the investment program or that could impair their ability to make impartial
investment decisions.
It is the policy of the Town of Sweden to diversify its deposits and
investments by financial institution, by investment instrument, and by maturity
schedule.
It is the policy of the Town of Sweden for all moneys collected by any
officer or employee of the government to be transferred to the chief fiscal
officer within 30 days of deposit, or within the time period specified in
law, whichever is shorter.
The chief fiscal officer 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 and are managed in compliance with applicable
laws and regulations.
A.
The Town Board, from time to time, consistent with state
law, shall determine the banks and maximum amount in each account authorized
for the deposit of moneys.
B.
In accordance with the provisions of General Municipal
Law § 10, all deposits of the Town of Sweden, including certificates
of deposit and special time deposits, in excess of the amount insured under
the provisions of the Federal Deposit Insurance Act shall be secured by a
pledge of eligible securities with an aggregate market value, or provided
by General Municipal Law § 10, equal to the aggregate amount of
deposits from the categories designated in Appendix A to the policy.[1] Eligible securities used for collateralizing deposits shall be
held by the depository bank subject to security and custodial agreements.
[1]
Editor's Note: Appendix A is included at the end of this chapter.
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 pledge 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.
D.
The custodial agreement shall provide that securities
held by the bank, or agent of and custodian for the local government, will
be kept separate and apart from the general assets of the custodial bank 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 Sweden authorizes the chief fiscal officer to invest moneys not
required for immediate expenditure for terms not to exceed its projected cash
flow needs in the following types of investments:
B.
All investment obligations shall be payable or redeemable
at the option of the Town of Sweden 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 Sweden within
two years of the date of purchase.
The Town of Sweden 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 local government conducts
business must be credit worthy. Banks shall provide their most recent Consolidated
Report of Condition at the request of the Town of Sweden. 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.
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Appendix A
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Schedule of Eligible Securities
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1.
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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.
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2.
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Obligations issued or fully guaranteed by the International Bank for
Reconstruction and Development, the Inter-American Development Bank, the Asian
Development Bank, and the African Development Bank.
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3.
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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.
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4.
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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.
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5.
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Obligations issued by states (other than the State of New York) of the
United States rated in one of the three highest rating categories by at least
one nationally recognized statistical rating organization.
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6.
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Obligations of Puerto Rico rated in one of the three highest rating
categories by at least one nationally recognized statistical rating organization.
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7.
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Obligations of counties, cities and other government entities of a state
other than the State of New York having the power to levy taxes that are backed
by the full faith and credit of such governmental entity and rated in one
of the three highest rating categories by at least one nationally recognized
statistical rating organization.
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8.
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Obligations of domestic corporations rated in one of the two highest
rating categories by at least one nationally recognized statistical rating
organization.
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9.
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Any mortgage-related securities, as defined in the Securities Exchange
Act of 1934, as amended, which may be purchased by banks under the limitations
established by bank regulatory agencies.
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10.
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Commercial paper and bankers' acceptances issued by a bank, other than
the bank, rated in the highest short-term category by at least one nationally
recognized statistical rating organization and having maturities of not longer
than 60 days from the date they are pledged.
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11.
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Zero coupon obligations of the United States government marketed as
"Treasury Strips."
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