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:
A. To conform to 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 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.
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.
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:
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" 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 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.
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 substitutions of securities will be allowed.
E. The custodian shall be a party other than the trading
partner.