This chapter 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 local government's
investment activities are, in priority order:
A. To conform with all applicable federal, state and
other legal requirements (legal).
B. To adequately safeguard principal (safety).
C. To provide sufficient liquidity to meet all operating
requirements (liquidity).
D. To obtain a reasonable rate of return (yield).
The governing board's responsibility for administration
of the investment program is delegated to the Village 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.
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
of Middleport to govern effectively. 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.
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 Middleport
to diversify its deposits and investments by financial institution,
by investment instrument and by maturity scheduling.
[Amended 5-20-2024 by L.L. No. 3-2024]
The Village shall maintain a list of banks and financial institutions
designated for the deposit of monies and establish the maximum amount
which may be deposited at such banks and financial institutions by
Village Board resolution, which may be amended by the Village Board
from time to time.
In accordance with the provisions of General
Municipal Law § 10, all deposits of Village of Middleport,
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 government for a term not to exceed 90 days with an aggregate
value equal to 140% of the aggregate amount of deposits and the agreed
upon interest, if any. A qualified bank if 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 government
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 of Middleport 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 local government conducts business must
be credit worthy. Banks shall provide their most recent consolidated
report of condition (Call Report) at the request of the Village of
Middleport. 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 Village 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.