[HISTORY: Adopted by the Town Board of the
Town of Wales 2-4-1991. Amendments noted where applicable.]
The objectives of the investment policies of
the Town of Wales are the following:
A.
In accordance with this policy, the Chief Fiscal Officer
of the Town of Wales is hereby authorized to invest all funds, including
proceeds of obligations and reserve funds, in:
C.
Only reserve funds may be invested in obligations
of the Town of Wales.
D.
Funds may be commingled to invest for maximum income,
but records must be kept separate for each fund and/or reserve fund.
All other Town of Wales officials receiving
money in their official capacities 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 obligation
of New York State or obligation of the United States or obligations
of the federal agencies, the principal and interest of which are guaranteed
by the United States, or obligations of New York State local governments.
Collateral shall be provided to the Town of Wales or a custodial bank
in accordance with the accepted and recognized practice of custodial
banks within the State of New York regarding such custodial agreement.
The market value shall at all times equal or exceed the principal
amount of the certificate of deposit. Collateral shall be monitored
no less frequently than weekly, and market value shall mean the bid
or closing price as quoted in the Wall Street Journal or as quoted
by another recognized pricing service.
(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.
Delivery of securities.
(1)
Payment shall be made by or on behalf of the Town
of Wales for obligations of New York State, obligations, the principal
and interest of which are guaranteed by the United States, United
States obligations, certificates of deposit and other purchase securities,
upon the delivery thereof to the custodial bank or, in the case of
a book-entry transaction, when the purchased securities are credited
to the custodial bank's Federal Reserve System account.
(2)
All transactions shall be confirmed in writing.
C.
Written contracts.
(1)
Written contracts are required for Certificates of
Deposit and custodial undertakings. With respect to the purchase of
obligations of the United States, New York State or other governmental
entities, etc., in which moneys may be invested, the interests of
the Town of Wales will be adequately protected by conditioning payment
on the physical delivery of purchased securities to the Town of Wales
or custodian or, in the case of book-entry transactions, on the crediting
of purchased securities to the custodian's Federal Reserve System
account.
D.
Designation of custodial bank. M&T Bank, chartered
by the State of New York, is designated to act as custodial bank of
the Town of Wales investments. However, securities may not be purchased
through a repurchase agreement with the custodial bank.
E.
Financial strength of institutions.
(1)
All trading partners must be creditworthy. Their financial
statements must be reviewed at least annually by the Chief Fiscal
Officer to determine satisfactory financial agencies, or the Chief
Fiscal Officer may use credit rating agencies to determine the creditworthiness
of trading partners. Concentration of investments in financial institutions
should be avoided.
(2)
Investments in time deposits and certificates of deposit
are to be made with banks or trust companies. Their annual reports
must be reviewed by the Chief Fiscal Officer to determine satisfactory
financial strength.
(3)
When purchasing eligible securities, the seller shall
be required to deliver the securities to the custodial bank.
F.
Operations, audit and reporting.
(1)
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 Town
of Wales. Oral directions concerning the purchase or sale of securities
shall be confirmed in writing. The Town of Wales shall pay for purchased
securities upon the delivery or book-entry thereof.
(2)
The Town of Wales will encourage the purchase and
sale of securities and certificates of deposit through a competitive
or negotiated process involving telephone solicitation of at least
three bids for each transaction.
(3)
The Wales Town Board reviews financial affairs and
investments on a monthly basis, which are included in the Supervisor's
monthly statement.
