[HISTORY: Adopted by the Town Board of the
Town of Greenwich 3-14-1989, amended in its entirety 1-7-2020. Subsequent amendments
noted where applicable.]
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 local government's investment
activities are, in priority order:
The governing board's responsibility for administration
of the investment program is delegated to the Supervisor, who shall
establish written procedures for the operation of the investment program
consistent with these investment guidelines. Such procedures all include
an adequate internal control structure to provide a satisfactory level
of accountability based on a database or records incorporating description
and amounts of investments, transaction dates, and other relevant
information and regulate the activities of subordinate employees.
A.Â
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 Town of Greenwich to govern
effectively.
B.Â
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.Â
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 Town of Greenwich to diversify its deposits
and investments by financial institution, by investment instrument
and by maturity scheduling.
A.Â
It is the policy of the Town of Greenwich for all moneys collected
by any officer or employee of the government to transfer those funds
to the Supervisor within the time period specified by law.
B.Â
The Supervisor is responsible for establishing and maintaining an
internal control structure to provide reasonable, but not absolute,
assurance that deposits and investments are safeguarded against loss
from unauthorized use or disposition, that transactions are executed
in accordance with management's authorization and recorded properly,
and are managed in compliance with applicable laws and regulations.
The banks and trust companies authorized for the deposit of
monies are those designated at the Annual Organizational Meeting of
the Town of Greenwich.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of Greenwich, 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 by:
B.Â
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 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.Â
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.
A.Â
Eligible securities used for collateralizing deposits shall be held
by the depository and/or a third-party bank or trust company subject
to security and custodial agreements.
B.Â
The security agreement shall provide that eligible securities are
being pledged to secure local government deposits together with agreed-upon
interest, if any, and any costs or expenses arising out of the collection
of such deposits upon default. It shall also provide the conditions
under which the securities may be sold, presented for payment, substituted
or released and the events which will enable the local government
to exercise its rights against the pledged securities. In the event
that the securities are not registered or inscribed in the name of
the local government, such securities shall be delivered in a form
suitable for transfer or with an assignment in blank to the Town of
Greenwich or its custodial bank.
C.Â
The custodial agreement shall provide that securities held by the
bank or trust company, or agent of and custodian for, the local government,
will be kept separate and apart from the general assets of the custodial
bank or trust company and will not, in any circumstances, be commingled
with or become part of the backing for any other deposit or other
liabilities. The agreement should also describe that the custodian
shall confirm the receipt, substitution or release of the securities.
The agreement shall provide for the frequency of revaluation of eligible
securities and for the substitution of securities when a change in
the rating of a security may cause ineligibility. Such agreement shall
include all provisions necessary to provide the local government a
perfected interest in the securities.
A.Â
As authorized by General Municipal Law § 11, the Town of
Greenwich authorizes the Supervisor to invest moneys not required
for immediate expenditure for terms not to exceed its projected cash
flow needs in the following types of investments:
(1)Â
Special time deposit accounts;
(2)Â
Certificates of deposit;
(3)Â
Obligations of the United States of America;
(4)Â
Obligations guaranteed by agencies of the United States of America
where the payment of principal and interest are guaranteed by the
United States of America;
(5)Â
Obligations of the State of New York;
(6)Â
Obligations issued pursuant to LPL § 24.00 or 25.00 (with
approval of the State Comptroller) by any municipality, school district
or district corporation other than the Town of Greenwich;
(7)Â
Obligations of public authorities, public housing authorities, urban
renewal agencies and industrial development agencies where the general
state statutes governing such entities or whose specific enabling
legislation authorizes such investments.
(8)Â
New York Cooperative Liquid Assets Securities System (NYCLASS) or
other cooperative fund investment group if structured in accordance
with New York State General Municipal Law.
B.Â
All investment obligations shall be payable or redeemable at the
option of the Town of Greenwich within such times as the proceeds
will be needed to meet expenditures for purposes for which the moneys
were provided and, in the case of obligations purchased with the proceeds
of bonds or notes, shall be payable or redeemable at the option of
the Town of Greenwich within two years of the date of purchase.
The Town of Greenwich 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 creditworthy. Banks shall provide
their most recent Consolidated Report of Condition (Call Report) at
the request of the Town of Greenwich. 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 Supervisor is responsible for evaluating the financial position
and maintaining a listing of proposed depositaries, trading partners
and custodians. Such listing shall be evaluated at least annually.
A.Â
The Supervisor is authorized to contract for the purchase of investments:
(1)Â
Directly, including through a repurchase agreement, from an authorized
trading partner.
(2)Â
By participation in a cooperative investment program with another
authorized governmental entity pursuant to Article 5G of the General
Municipal Law where such program meets all the requirements set forth
in the Office of the State Comptroller Opinion No. 88-46, and the
specific program has been authorized by the governing board.
(3)Â
By utilizing an ongoing investment program with an authorized trading
partner pursuant to a contract authorized by the governing board.
B.Â
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 Town of Greenwich 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.
C.Â
The custodial agreement shall provide that securities held by the
bank or trust company, as agent of and custodian for, the local government,
will be kept separate and apart from the general assets of the custodial
bank or trust company and will not, in any circumstances, be commingled
with or become part of the backing for any other deposit or other
liabilities. The agreement shall describe how the custodian shall
confirm the receipt and release of the securities. Such agreement
shall include all provisions necessary to provide the local government
a perfected interest in the securities.
Repurchase agreements are authorized subject to the following
restrictions:
A.Â
All repurchase agreements must be entered into subject to a master
repurchase agreement.
B.Â
Trading partners are limited to banks or trust companies authorized
to do business in New York State and primary reporting dealers.
C.Â
Obligations shall be limited to obligations of the United States
of America and obligations guaranteed by agencies of the United States
of America.
D.Â
No substitution of securities will be allowed.
E.Â
The custodian shall be a party other than the trading partner.