This investment policy applies to all moneys and other financial resources
available for investment by the Village of Cobleskill (hereinafter referred
to as the "village") on behalf of the village or on behalf of any other entity
or individual.
The primary objectives of the village's investment activities are,
in priority order, to:
A. Conform to all applicable federal, state and other legal
requirements (legal).
B. Adequately safeguard principal (safety).
C. Provide sufficient liquidity to meet all operating requirements
(liquidity).
D. Obtain a reasonable rate of return (yield).
The responsibility of the Board of Trustees of the village (hereinafter
referred to as the "Village Board," the "Board of Trustees" or "Board") for
administration of the village's investment program is delegated to the
Village Treasurer of the village (hereinafter referred to as the "Village
Treasurer" or "Treasurer"), 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 data base or records incorporating
description and amounts of investments, transaction dates and other relevant
information and to regulate the activities of subordinate employees.
It is the policy of the village to diversify its deposits and investments
by financial institution, investment instrument and maturity scheduling.
The Board of Trustees shall designate annually at its organizational
meeting of the Board, and at such other times as it may deem appropriate,
the banks and trust companies authorized for the deposit of village moneys.
In accordance with § 10 of the State General Municipal Law,
all deposits of the village, including certificates of deposit and special
time deposits in excess of all amounts insured under provisions of the Federal
Deposit Insurance Act, shall be secured by:
A. A pledge of eligible securities with an aggregate market
value as provided pursuant to § 10, equal to the aggregate amount
of deposits from the categories set forth in Appendix A of this policy.
B. An eligible irrevocable letter of credit issued by a
qualified bank, other than the bank with the deposits, in favor of the village
for a term not to exceed ninety (90) days with an aggregate value equal to
one hundred forty percent (140%) of the aggregate amount of deposits and the
agreed upon interest, if any. A qualified bank is one in which the bank's
commercial paper and other unsecured short-term debt obligations are rated
in one (1) of the three (3) highest rating categories by at least one (1)
nationally recognized statistical rating organization or by a bank that is
in compliance with applicable federal minimum risk-based capital requirements.
C. An eligible surety bond payable to the government for
an amount equal to at least one hundred percent (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, such company to have
claims-paying ability rated in the highest rating category by at least two
(2) nationally recognized statistical rating organizations.
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 and 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.