The Board of Trustees hereby adopts the following policy for
the investment of all Village funds as delegated to the Chief Fiscal
Officer, the Clerk-Treasurer. The Clerk-Treasurer is directed to:
A. Keep Village checking accounts as near zero balance as practical.
B. Deposit other operational funds in the appropriate income producing
account as allowed by law.
C. Where practicable, as authorized by General Municipal Law §§ 10
and 11, invest monies not required for immediate expenditure for terms
not to exceed projected cash flow needs into certificates of deposits,
special time deposit accounts and/or obligations of the United State
of America.
D. If authorized by the Village Board, place monies in a deposit placement
program with an authorized banking institution pursuant to § 10
of the General Municipal Law and § 9-r of the Banking Law.
Such deposit placement program must meet all of the following conditions:
(1) On or after the date that the Village's funds are received,
authorized banking institution:
(a)
Arranges for the redeposit of such funds into deposit accounts
in one or more banking institutions; and
(b)
Serves as custodian for the Village with respect to the funds
redeposited into such accounts.
(2) Village funds deposited in the authorized banking institution and held in the authorized banking institution in excess of the amount insured by the federal deposit insurance corporation pending redeposit of the funds shall be secured in accordance with Subsection
E of this section.
(3) The full amount of local government funds redeposited by the authorized
banking institution into deposit accounts in banking institutions
pursuant to this subparagraph (plus accrued interest, if any) shall
be insured by the Federal Deposit Insurance Corporation.
(4) At the same time that the money of the local government is redeposited
pursuant to this subsection, the authorized banking institution receives
an amount of deposits from customers of other financial institutions
pursuant to the deposit placement program that are at least equal
to the amount of the Village's funds redeposited by the authorized
banking institution.
E. Secure from the authorized banking institution a pledge of collateral
as security the investment for amount in excess of FDIC coverage beyond
the own investments in that banking institution or through any banks
if the Village's funds are placed in a deposit placement program
pursuant to § 10 of the General Municipal Law, et al.
It is the policy of the Village of Newark Valley to diversify
its deposits and investments by investment instrument and by maturity
scheduling.
It is the policy of the Village of Newark Valley for all monies
to be collected by the Clerk-Treasurer and be deposited within a week
or less. The Clerk-Treasurer is responsible for establishing and maintaining
and internal control structure to provide reasonable, but not absolute,
assurance that deposits and investments are safeguarded against loss
from unauthorized use of disposition and are managed in compliance
with applicable laws, ordinances, rules and regulations and that transactions
are executed in accordance with management's authorization and
recorded properly.
All such securities shall be held according to the Provisions
of §§ 10 and 11 of the General Municipal Law and other
statutes, ordinances, rules and regulations that may apply.