[HISTORY: Adopted by the Town Board of the Town of Eaton 8-19-1996. Amendments noted where applicable.]
The purpose of this chapter is to minimize risk; to ensure that investments mature when the cash is required to finance operations; and to ensure a competitive rate of return.
A. 
In accordance with this chapter, the chief fiscal officer is hereby authorized to invest all funds as follows:
(1) 
Proceeds of obligations and reserve funds:
(a) 
Certificates of deposit issued by a bank or trust company authorized to do business in New York State.
(b) 
Time deposit accounts in a bank or trust company authorized to do business in New York State.
(c) 
Obligations of New York State.
(d) 
Obligations of the United States Government.
(2) 
All funds except reserve funds may be invested in:
(a) 
Obligations of agencies of the federal government if principal and interest is guaranteed by the United States.
(b) 
With the approval of the State Comptroller, in revenue anticipation notes or tax anticipation notes of other towns.
(3) 
Only reserve funds may be invested in obligations of the town.
B. 
All other town officials receiving money in their official capacity must deposit such funds in negotiable order of withdrawal accounts.
C. 
All investments made pursuant to this investment policy shall comply with the following conditions:
(1) 
Collateral:
(a) 
Certificate of deposit shall be fully secured by insurance of the Federal Deposit Insurance Corporation or by obligations of New York State or obligations of the United States or obligations of federal agencies the principal and interest of which are guaranteed by the United States or obligations of town. Collateral shall be delivered to the town or a custodial bank with which the town has entered into a custodial agreement. The market value of collateral shall at all times equal or exceed the principal amount of the certificate of deposit.
(b) 
Collateral shall not be required with respect to the 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.
(2) 
Written contracts. Written contracts are required for certificates of deposit and custodial undertakings. With respect to the purchase of obligations of United States, New York State or other governmental entities, the interests of the town will be adequately protected by conditioning payment on the physical delivery of purchased securities to the town 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 in the form of a contract as follows:
(a) 
Written contracts shall be required for the purchase of all certificates of deposit.
(b) 
A written contract shall be required with the custodial bank.
(3) 
Designation of custodial bank. The Board shall designate an appropriate banking institution.
(4) 
Financial strength of institutions:
(a) 
Investments in time deposits and certificates of deposit are to be made with banks or trust companies. Their annual reports must be reviewed by the chief fiscal officer to determine satisfactory financial strength.
(b) 
When purchasing eligible securities, the seller shall be required to deliver the securities to our custodial bank.
(c) 
At the time independent auditors conduct the annual audit of the accounts and financial affairs of the town, the independent auditors shall audit the investments of the town for compliance with the provisions of these investment guidelines.
(d) 
At lest annually, and if practicable, at the organizational meeting of the Town Board, the Board shall review and amend, if necessary, these investment guidelines.
(e) 
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.