This investment policy applies to all moneys
and other financial resources available for investment on its own
behalf or on behalf of any other entity or individual.
The primary objectives of the Village's investment
activities are, in priority order, to:
A. Conform to all applicable federal, state and other
legal requirements (legal).
B. Adequately safeguard principal (safety).
C. Provide sufficient liquidity to meet all operating
requirements (liquidity).
D. Obtain a reasonable rate of return (yield).
The Village Board's responsibility for administration
of the investment program is delegated to the Treasurer, who shall
establish written procedures for the operation of the investment program
consistent with these investment guidelines. Such procedures shall
include an adequate internal control structure to provide a satisfactory
level of accountability based on a data base or records incorporating
description and amounts of investments, transaction dates and other
relevant information and regulate the activities of subordinate employees.
It is the policy of the Village to diversify
its deposits and investments by financial institution, by investment
instrument and by maturity scheduling.
The banks and trust companies authorized for
the deposit of moneys up to the maximum amounts are:
Depository Name
|
Maximum Amount
|
Officer
|
---|
Chemical Bank
|
----
|
John Materazo
|
Bank of New York
|
----
|
Cathi Davignon
|
In accordance with the provisions of General
Municipal Law § 10, all deposits of the Village, including
certificates of deposit and special time deposits, in excess of the
amount insured under the provisions of the Federal Deposit Insurance
Act shall be secured:
A. By a pledge of eligible securities with an aggregate
market value as provided by General Municipal Law § 10 equal
to the aggregate amount of deposits from the categories designated
in Appendix A to the policy.
B. By an eligible irrevocable letter of credit issued
by a qualified bank other than the bank with the deposits in favor
of the Village for a term not to exceed 90 days with an aggregate
value equal to one hundred forty percent (140%) of the aggregate amount
of deposits and the agreed-upon interest, if any. A qualified bank
is one whose commercial paper and other unsecured short-term debt
obligations are rated in one of the three highest rating categories
by at least one nationally recognized statistical rating organization
or by a bank that is in compliance with applicable federal minimum
risk-based capital requirements.
C. By an eligible surety bond payable to the Village
for an amount at least equal to 100% of the aggregate amount of deposits
and the agreed-upon interest, if any, executed by an insurance company
authorized to do business in New York State, whose claims-paying ability
is rated in the highest rating category by at least two nationally
recognized statistical rating organizations.
The Village shall maintain a list of financial
institutions and dealers approved for investment purposes and establish
appropriate limits to the amount of investments which can be made
with each financial institution or dealer. All financial institutions
with which the Village conducts business must be credit worthy. Banks
shall provide their most recent consolidated report of condition (call
report) at the request of the Village. Security dealers not affiliated
with a bank shall be required to be classified as reporting dealers
affiliated with the New York Federal Reserve Bank as primary dealers.
The Treasurer is responsible for evaluating the financial position
and maintaining a listing of proposed depositories, trading partners
and custodians. Such listing shall be evaluated at least annually.
Repurchase agreements are authorized subject
to the following restrictions:
A. All repurchase agreements must be entered into subject
to a master repurchase agreement.
B. Trading partners are limited to banks or trust companies
authorized to do business in New York State and primary reporting
dealers.
C. Obligations shall be limited to obligations of the
United States of America and obligations guaranteed by agencies of
the United States of America.
D. No substitution of securities will be allowed.
E. The custodian shall be a party other than the trading
partner.