[HISTORY: Adopted by the Town Board of the Town of Olive 4-7-1990.
Amendments noted where applicable.]
The objectives of the investment policy of the Town of Olive are:
All other Town of Olive officials receiving money in their official
capacity must deposit such funds in negotiable order of withdrawals accounts.
All investments made pursuant to this Investment Policy shall comply
with the following conditions:
A.
Collateral.
(1)
All collateral shall be held in third party (custodial)
banks with which the Town of Olive has entered into a Custodial Agreement.
The market value of the collateral shall at all times equal or exceed the
principal amount of the Certificate of Deposit. Collateral shall be monitored
no less frequently than semiannually, 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 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. Payment shall be made by or on
behalf of the Town of Olive 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 purchased securities
upon delivery thereof to the custodial bank, or to the Town of Olive, or in
the case of a book-entry transaction, when the purchase securities are credited
to the Custodial Bank's Federal Reserve System account. All transactions shall
be confirmed in writing.
C.
Written contracts. 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 interest of the Town of
Olive will be adequately protected by conditioning payment on the physical
delivery of purchased securities to the Town of Olive 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 Town of Olive.
The Town of Olive will encourage the purchase and sale of securities
and certificates of deposit through a competitive or negotiated process involving
telephone solicitation of at least two bids for each transaction. The Town
of Olive shall use only those institutions with which they are familiar and
can expect good service and creditability.
At the time independent auditors conduct the annual audit of the Town
of Olive accounts and financial affairs of the Town of Olive, the independent
auditors shall audit the investments of the Town of Olive for compliance with
the provisions of these investment guidelines.
Within 60 days of the end of each of the six months of the fiscal year,
the Chief Fiscal Officer shall prepare and submit to the Town Board of the
Town of Olive a semiannual investment report which indicates new investments,
the inventory of existing investments, and such other matters as the Chief
Fiscal Officer deems appropriate.
A.
Within 60 days of the end of the fiscal year, the Chief
Fiscal Officer shall prepare and submit to the Town Board of the Town of Olive
an annual investment report; the results of the annual independent audit;
the investment income record; and such other matters as the Chief Fiscal Officer
deems appropriate.
B.
The Town Board of the Town of Olive shall review and
approve the annual investment report.
At least annually, the Town Board shall review and amend, if necessary,
these investment guidelines.
The provisions of these investment guidelines and any amendments hereto
shall take effect prospectively, and shall not invalidate the prior selection
of any custodial bank or prior investment.
