[HISTORY: Adopted by the Town Board of the
Town of Wawayanda 2-3-1994.[1] Amendments noted where applicable.]
[1]
Editor's Note: This resolution also superseded
former Ch. 21, Investment Policy, adopted 2-5-1987.
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 Town Supervisor, 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 database or records
incorporating description and amounts of investments, transaction
dates and other relevant information and to 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
Wawayanda 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 Wawayanda to
diversify its deposits and investment by financial institution, by
investment instrument and by maturity scheduling.
A.Â
It is the policy of the Town of Wawayanda, for all
moneys collected by any officer or employee of the government, to
transfer those funds to the Town Supervisor within 30 days of deposit
or within the time period specified in law, whichever is shorter.
B.Â
The Town 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 and 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 moneys up to the maximum amounts are:
|
Depositary Name
|
Maximum Amount
|
Officer
|
|---|---|---|
|
National Bank of Florida
|
$2,400,000
|
Carol Dembeck
|
|
Chemical Bank
|
$2,400,000
|
Paul Piergentile
|
In accordance with the provision of General
Municipal Law § 10, all deposits of the Town of Wawayanda,
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:
B.Â
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" 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
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.
A.Â
Eligible securities used for collateralizing deposits
shall be held by Chemical Bank and Manufactures Traders & Trust
Company and shall be 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 Wawayanda 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 Wawayanda authorizes the Town 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:
B.Â
All investments obligations shall be payable or redeemable
at the option of the Town of Wawayanda 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 Wawayanda within two years of the date of purchase.
A.Â
The Town of Wawayanda 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
at the request of the Town of Wawayanda.
B.Â
Securities 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 Town 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 Town 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 5-G
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, 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 Wawayanda by the bank or trust
company. Any obligation held in the custody of a bank or trust company
shall be 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 substitutions of securities will be allowed.
E.Â
The custodian shall be a party other than the trading
partner.
