[HISTORY: Adopted by the Board of Trustees of the Village
of Newark Valley 11-12-2013 by L.L. No. 5-2013.[1] Amendments noted where applicable.]
[1]
Editor's Note: This local law also repealed former Ch.
19, Investment Policy, adopted 8-6-1990 by Res. No. 54-90, as amended.
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:
(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.
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 Village Board of Trustees
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 which could impair their ability to make
impartial investment decisions.
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.
A.
The Village of Newark Valley by resolution, from time to time, can
authorize the banking institution in which to deposit money, by consideration
of, among other things, the location of the branches and with the
intent to keep the businesses local as reasonable. The resolution
shall be kept on file at the Clerk-Treasurer's Office.
B.
If authorized by the Village, the money placed with such banking
institution may be transferred to other institutions under a deposit
placement program, provided that such placement fits all the requirements
of § 10 of the General Municipal Law and § 9-r
of the Banking Law.
A.
Any banking institution that is authorized to be used by the Village
will keep any monies that it is holding covered by FDIC insurance.
B.
If authorized by the Village and Pursuant to § 10 of the
General Municipal Law and § 9-r of the Banking Law, amounts
of in excess of the FDIC limit may be placed in deposit placement
program provided that the amounts in each account does not exceed
the maximum coverage of FDIC.
C.
All other monies held by such authorized banking institution shall
be secured in accordance with § 10 and/or § 11
of the General Municipal Law, as the case may be.
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.
A.
In the event that the Village authorizes its banking institution
to enter into a deposit placement program with other banks, the Village
hereby authorizes the placement of such monies by such reciprocal
banking institution without prior approval as to such institution
by the Village as long as the following conditions are satisfied:
(1)
Such banking institution shall insure and hold the Village harmless
that:
(a)
It and any other reciprocal bank is compliant with § 10
of the General Municipal Law and § 9-R of the Banking Law;
(b)
All other applicable statutes, ordinances, rules and regulations
are followed;
(c)
That all accounts are fully insured by the FDIC;
(d)
That such banking institution shall indemnify and hold the Village
harmless from any loss, fine or penalty should it or any of its reciprocal
banks fail to have such amounts held by either fully insured by the
FDIC, including all attorney's fees and other costs associated
therewith.
B.
Such banking institution shall provide, at least on a monthly basis,
a list of all such reciprocal banking institutions under any such
deposit placement program together with the amounts in each. Such
statements shall be kept on file in the Clerk-Treasurer's Office.
A.
The Clerk-Treasurer is authorized to contract for the purchase of
investments directly from an authorized trading partner.
B.
All purchased obligations, unless registered or inscribed in the
name of the local government, 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 of Newark Valley 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 and 11.
