[HISTORY: Adopted by the Board of Trustees
of the Village of Upper Brookville 11-15-1993. Amendments noted where applicable.]
This investment policy applies to all moneys and other financial
resources available for investment on the Village's own behalf
or on behalf of any other entity or individual.
The primary objectives of the Village's investment activities
are, in priority order:
[Amended 10-21-2019 by L.L. No. 3-2019]
The Village Board's responsibility for administration of
the investment program is delegated to the Treasurer, who shall establish
written procedures for the operation of the investment program consistent
with these investment guidelines, which procedures shall be approved
by the Board of Trustees. Such procedures shall include an adequate
internal control structure to provide a satisfactory level of accountability,
based on a database of records incorporating the description and amounts
of investments, transaction dates and other relevant information,
and to 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 ability of the Village
to govern effectively.
[Amended 9-19-2000 by L.L. No. 1-2000]
B.
Investments shall be made in only approved investments and selected
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.
[Amended 10-21-2019 by L.L. No. 3-2019]
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 which could impair their ability to make
impartial investment decisions.
[Amended 10-21-2019 by L.L. No. 3-2019]
It is the policy of the Village to diversify its deposits and
investments as directed by the Board of Trustees among financial institutions,
investment instruments and maturity scheduling.
A.
It is the policy of the Village for all moneys collected by any officer
or employee of the Village to be transferred to the Treasurer within
10 days of deposit or within the time period specified in law, whichever
is shorter.
[Amended 9-19-2000 by L.L. No. 1-2000]
B.
The Treasurer is responsible for maintaining an internal control
structure established by the Board of Trustees 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.
[Amended 10-21-2019 by L.L. No. 3-2019]
C.
The monthly Treasurer's report shall contain a listing of all
time deposits, certificates of deposit, United States Treasury bills
and notes and other authorized investments individually showing amount,
interest rate and maturity date.
The Board of Trustees, by resolution, may from time to time
designate banks and trust companies that are authorized to accept
deposit of moneys from the Treasurer up to a designated maximum amount
established by the Board of Trustees.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Village, including certificates of deposit and
special time deposits, in excess of the amount insured under the provisions
of the Federal Deposit Insurance Act[1] shall be secured:
B.
By 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 to be deemed by the Board of Trustees with an aggregate
value equal to 100% of the aggregate amount of deposits. A qualified
bank, designated by the Board of Trustees, is one whose commercial
paper and other unsecured short-term debt obligations are rated in
the highest rating category by at least one nationally recognized
statistical rating organization, accept such letter of credit payable
to such local government for the payment of 105% of the aggregate
amount of public deposits from the Treasury and the agreed upon interest.
[Amended 10-21-2019 by L.L. No. 3-2019]
C.
By an eligible surety bond payable to the Village 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.
[1]
Editor's Note: See 12 U.S.C.A. § 1811 et seq.
A.
Eligible securities used for collateralizing deposits shall be held
by a third party bank or trust company subject to security and custodial
agreements.
B.
The security agreement shall provide that eligible securities are
being pledged to secure Village 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 Village to exercise
its rights against the pledged securities. In the event that the securities
are not registered or inscribed in the name of the Village, such securities
shall be delivered in a form suitable for transfer or with an assignment
in blank to the Village or its custodial bank.
C.
The custodial agreement shall provide that securities held by the
bank or trust company, as agent of and custodian for the Village,
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 Village a perfected
interest in the securities.
A.
As authorized by General Municipal Law § 11, the Village
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 of the United States of America.
(4)
Obligations guaranteed by agencies of the United States of America
where the payment of principal and interest is guaranteed by the United
States of America.
(5)
Obligations of the State of New York.
(6)
Obligations issued pursuant to Local Finance Law § 24.00
or 25.00 (with approval of the State Comptroller) by any municipality,
school district or district corporation other than the Village.
(7)
Obligations of public authorities, public housing authorities, urban
renewal agencies and industrial development agencies where the general
state statutes governing such entities authorize, or whose specific
enabling legislation authorizes, such investments.
(8)
Certificates of participation (COPs) issued pursuant to General Municipal
Law § 109-b.
(9)
Obligations of this local government, but only with any moneys in
a reserve fund established pursuant to General Municipal Law § 6-c,
6-d, 6-e, 6-g, 6-h, 6-j, 6-k, 6-l, 6-m or 6-n.
(10)
Such other investments that are authorized by NYS for investment
of Village funds.
[Added 10-21-2019 by L.L.
No. 3-2019]
B.
All investment obligations shall be payable or redeemable at the
option of the Village 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 Village
within two years of the date of purchase.
The Village 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 Village
conducts business must be creditworthy. Banks shall provide their
most recent consolidated report of condition (call report) at the
request of the Village. 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 Treasurer
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.
A.
The Treasurer is authorized to contract for the purchase of investments:
(1)
Directly, including through a repurchase agreement, from an authorized
trading partner.
(2)
By participation in a cooperative investment program with another
authorized governmental entity pursuant to Article 5-G of the General
Municipal Law, where such program meets all the requirements set forth
in the Office of the State Comptroller Opinion No. 88-46 and the specific
program has been authorized by the governing board.
(3)
By utilizing an ongoing investment program with an authorized trading
partner pursuant to a contract authorized by the governing board.
B.
All purchased obligations, unless registered or inscribed in the
name of the Village, shall be purchased through, delivered to and
held in the custody of a bank or trust company. Such obligations shall
be purchased, sold or presented for redemption or payment by such
bank or trust company only in accordance with prior written authorization
from the officer authorized to make the investment. All such transactions
shall be confirmed, in writing, to the Village by the bank or trust
company. Any obligation held in the custody of a bank or trust company
shall be held pursuant to a written custodial agreement as described
in General Municipal Law § 10.
C.
The custodial agreement shall provide that securities held by the
bank or trust company, as agent of and custodian for the Village,
will be kept separate and apart from the general assets of the custodial
bank or 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 shall describe how the custodian shall
confirm the receipt and release of the securities. Such agreement
shall include all provisions necessary to provide the Village a perfected
interest in the securities.
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.
[Added 10-21-2019 by L.L.
No. 3-2019]
