This investment policy applies to all moneys
and other financial resources available for investment on the Town's
behalf or on behalf of any other entity or individual.
The primary objectives of the Town's investment
activities are, in priority order:
A. To conform with 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); and
D. To obtain a reasonable rate of return (yield).
The Board of Trustee's responsibility for administration
of the investment program is delegated to the Village Treasurer, 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 descriptions and amounts of investments, transaction
dates, and other relevant information and shall regulate the activities
of subordinate employees.
It is the policy of the Village of Island Park
to diversify its deposits and investments by financial institution,
by investment instrument, and by maturity scheduling.
The list of banks and trust companies authorized
for the deposit of moneys up to the maximum amounts is available in
the Village Clerk's office.
In accordance with the provisions of General
Municipal Law § 10, all deposits of the Village of Island
Park, including certificates of deposit and special time deposits,
in excess of amounts 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.
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.
The Village of Island Park 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 Village conducts business must be creditworthy.
Banks shall provide their most recent Consolidated Report of Condition
(Call Report) at the request of the Village of Island Park. 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 Village Treasurer 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.
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 substitution of securities will be allowed.
E. The custodian shall be a party other than the trading
partner.