All investments made pursuant to this investment
policy shall comply with the following conditions.
Written contracts are required for repurchase
agreements, certificates of deposit, and custodial undertakings. With
respect to the purchase of obligations of U.S., New York State, or
other governmental entities, etc., in which monies may be invested,
the interests of the local government will be adequately protected
by conditioning payment on the physical delivery of purchased securities
to the local government or custodian, or in the case of book-entry
transactions, on the crediting of purchased securities to the custodian's
Federal Reserve System account. All purchases will be confirmed in
writing to the local government. It is therefore, the policy of the
local government, to require written contracts as follows:
A. Written contracts shall be required for all repurchase
agreements. Only credit worthy banks and primary reporting dealers
shall be qualified to enter into a repurchase agreement with the local
government. The written contract shall provide that only obligations
of the United States may be purchased, and the local government shall
make payment upon delivery of the securities or appropriate book-entry
of the purchase securities. No specific repurchase agreement shall
be entered into, unless a master repurchase agreement has been executed
between the local government and the trading partners. While the term
of the master repurchase agreement may be for a reasonable length
of time, a specific repurchase agreement shall not exceed 30 days.
B. Written contracts shall be required for the purchase
of all certificates of deposit.
C. A written contract shall be required with the custodial
bank.
[Amended 10-3-2011 by L.L. No. 2-2011; 7-12-2021]
Custodial bank. The Key Bank of Eastern New
York, NA, Cobleskill branch, the Community Bank, the NBT Bank, NA,
New York Cooperative Liquid Assets Securities System (NYClass), and
the Bank of Richmondville chartered by the State of New York are designated
to act as custodial banks of the local government's investments. However,
securities may not be purchased through a repurchase agreement with
the custodial bank.