[HISTORY: Adopted by the Board of Trustees of the Village of Hamburg
8-19-1991. Amendments noted where applicable.]
The objectives of the investment policy of the Village of Hamburg are
to minimize risk, to ensure that investments mature when the cash is required
to finance operations and to ensure a competitive rate of return.
All other local government officials receiving money in their official
capacity must deposit such funds in negotiable order of withdrawal accounts.
All investments made pursuant to this investment policy shall comply
with the following conditions:
A.
Collateral.
(1)
Certificates of deposit shall be fully secured by insurance
of the Federal Deposit Insurance Corporation or by obligations of New York
State or obligations of the United States which are guaranteed by the United
States or obligations of New York State local governments. Collateral shall
be delivered to the local government or a custodial bank with which the local
government has entered into a custodial agreement. The market value of collateral
shall at all times equal or exceed the principal amount of the certificate
of deposit.
(2)
Collateral shall not be required with respect to the
direct purchase of obligations of New York State, obligations of the United
States and obligations of federal agencies, the principal and interest of
which are guaranteed by the United States Government.
B.
Designation of custodial bank. Any bank chartered by
the State of New York is designated to act as custodial bank of the Village
of Hamburg investments. However, securities may not be purchased through a
repurchase agreement with the custodial bank.
C.
Financial strength of institutions.
(1)
All trading partners must be credit worthy. Their financial
statements must be reviewed at least annually by the chief fiscal officer
to determine satisfactory financial strength, or the chief fiscal officer
may use credit rating agencies to determine credit worthiness of trading partners.
(2)
The village will seek the most favorable rate of return
possible. This should not restrict the total amount that can be deposited
in any one institution.
[Amended 4-6-1992]
(3)
Allowable investment vehicles are to be made with banks
or trust companies.
[Amended 4-6-1992]
(4)
Their annual reports must be reviewed by the chief fiscal
officer to determine satisfactory financial strength.
(5)
When purchasing eligible securities, the seller shall
be required to deliver the securities to our custodial bank.
A.
The chief fiscal officer or the deputy chief fiscal officer
shall authorize the purchase and sale of all securities and execute contracts
for certificates of deposit on behalf of the Village of Hamburg. Oral directions
concerning the purchase or sale of securities shall be confirmed in writing.
The Village of Hamburg shall pay for purchased securities upon the delivery
or book-entry thereof.
B.
The Village of Hamburg will encourage the purchase and
sale of securities and certificates of deposit through a competitive or negotiated
process involving telephone solicitation of at least two bids for each transaction.
At the time independent auditors conduct the annual audit of the accounts
and financial affairs of the Village of Hamburg, the independent auditors
shall audit the investments of the Village of Hamburg for compliance with
the provisions of these investment guidelines.
At least annually, and if practicable, at the April meeting of the governing
board, the members shall review and amend, if necessary, these investment
guidelines.
The provisions of these investment guidelines and any amendments hereto
shall take effect prospectively and shall not invalidate the prior selection
of any custodial bank or prior investment.
