[HISTORY: Adopted by the Board of Trustees of the Village
of Canajoharie 3-7-2001. Amendments
noted where applicable.]
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, to conform with all applicable
federal, state and other legal requirements (legal), to adequately
safeguard principal (safety), to provide sufficient liquidity to meet
all operating requirements (liquidity), and to obtain a reasonable
rate of return (yield).
The governing board's responsibility for administration
of the investment program is delegated to the Chief Fiscal Officer
or 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 data
base or records incorporating description and amounts of investments,
transaction dates, and other relevant information and regulate the
activities of subordinate employees.
A.
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 Village of Canajoharie
to govern effectively.
B.
Investments shall be made with judgement 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 probable income to be derived.
C.
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 Village of Canajoharie to diversify
its deposits and investments by financial institution, by investment
instrument, and by maturity scheduling.
A.
It is the policy of the Village of Canajoharie for all moneys collected
by any officer or employee of the government to transfer those funds
to the Treasurer within three days of receipt, or within the time
period specified in law, whichever is shorter.
B.
The Chief Fiscal Officer or Treasurer 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, that transactions
are executed in accordance with management's authorization and
recorded properly, and are managed in compliance with applicable laws
and regulations.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
The banks and trust companies authorized for the deposit of
monies up to the following maximum amounts are:
|
Central National Bank
24 Church Street
Canajoharie NY 13317
|
$400,000
|
|
NBT Bank
20 Mohawk Street
Canajoharie NY 13317
|
$100,000
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Village of Canajoharie, including certificates
of deposit and special time deposits, in excess of the amount insured
under provisions of the Federal Deposit Insurance Act shall be secured:
A.
By a pledge of "eligible securities" with an aggregate "market value,"
or provided by General Municipal Law § 10, equal to the
aggregate amount of deposits from the categories designated in Appendix
A[1] to the policy.
[1]
Editor's Note: Said appendix is included as an attachment to this chapter.
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 organizations 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.
A.
Eligible securities used for collateralizing deposits shall be held
by the depositary and/or a third-party bank or trust company subject
to security and custodial agreements.
B.
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 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 above-designated
banking institution or its custodial bank.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
C.
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.
As authorized by General Municipal Law § 11, the Village
of Canajoharie authorizes the Chief Fiscal Officer or Treasurer to
invest moneys not required for immediate expenditure for terms not
to exceed its projected cash flow needs in the following types of
investments:
(1)
Special time deposit accounts.
(2)
Certificates of deposits.
(3)
Obligations of the United States of America.
(4)
Obligations guaranteed by agencies of the United States of America
where the payment of principal and interest are guaranteed by the
United States of America.
(5)
Obligations of the State of New York.
(6)
Obligations issued pursuant to Local Finance Law § 24.00
or 25.00 (with approval of the State Comptroller) by any municipality,
school district or district corporation other than the Village of
Canajoharie.
(7)
Obligations of public authorities, public housing authorities, urban
renewal agencies and industrial development agencies where the general
state statutes governing such entities or whose specific enabling
legislation authorizes such investments.
(8)
Certificates of Participation (COPs) issued pursuant to General Municipal
Law § 109-b.
(9)
Obligations of this local government, but only with any moneys in
a reserve fund established pursuant to General Municipal Law §§ 6-c,
6-d, 6-e, 6-f, 6-g, 6-h, 6-j, 6-l, 6-m, or 6-n.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
B.
All investment obligations shall be payable or redeemable at the
option of the Village of Canajoharie 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 Village of Canajoharie within two years of the date of purchase.
The Village of Canajoharie 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 credit worthy.
Banks shall provide their most recent consolidated report of condition
(call report) at the request of the Village of Canajoharie. 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 Chief Fiscal Officer or Treasurer is
responsible for evaluating the financial position and maintaining
a listing of proposed depositories, trading partners and custodians.
Such listing shall be evaluated at least annually.
A.
The Chief Fiscal Officer or Treasurer is authorized to contract for
the purchase of investments:
(1)
Directly, including through a repurchase agreement, from an authorized
trading partner.
(2)
By participation in a cooperative investment program with another
authorized governmental entity pursuant to Article 5G 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)
By utilizing an ongoing investment program with an authorized tracking
partner pursuant to a contract authorized by the governing board.
B.
All purchased obligations, unless registered or inscribed in the
name of the local government, shall be purchased through, delivered
to and held in the custody of a bank or trust company. Such obligations
shall be purchased, 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 Village of Canajoharie by the
bank or trust company. Any obligation held in the custody of a bank
or trust company shall be held pursuant to a written custodial agreement
as described in General Municipal Law § 10.
C.
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 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.
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 of agencies of the United States of America
where principal and interest are guaranteed by 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.
