The Board of Trustees authorizes the use of the following commercial
banks or trust companies (not savings banks or associations), located
and authorized to do business in New York State, for placing investments
and specifically prohibits using private brokerage or investment firms
[General Municipal Law § 11, Local Finance Law § 165.00(b)]:
A. Five Star Bank.
[Amended 2-28-2006 by Res. No. 2006-4]
B. CHEMUNG CANAL TRUST COMPANY.
[Amended 2-28-2006 by Res. No. 2006-4]
C. Lyons National Bank.
[Amended 2-28-2006 by Res. No. 2006-4]
D. Any other commercial banks or trust companies meeting the above requirements
when bidding conditions warrant.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Village of Dundee, 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 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.
Where practical, written contracts are to be completed for repurchase
agreements, certificates of deposit and custodial undertakings. With
respect to the purchase of obligations of United States, New York
State or other governmental entities in which moneys may be invested,
the interests of the village will be adequately protected by conditioning
payment on the physical delivery of purchased securities to the village,
the custodial bank or the Trust Department or, in the case of book-entry
transactions, on the crediting of purchased securities to the custodial
bank's Federal Reserve account. All purchases will be confirmed
in writing to the village.
The Board of Trustees specifically authorizes the Clerk-Treasurer
to use electronic transfer of funds, among the approved banking institutions,
to assist in obtaining federal funds at enhanced interest rates. Each
such transfer shall be specifically identified in the original journal
entry as a "wire transfer" and subsequently supported by the bank
confirmation notice to provide an audit trail.