It is the policy of Albany County to diversify its deposits
and investments by financial institution, by investment instrument
and by maturity scheduling.
In accordance with the provisions of General Municipal Law § 10,
all deposits of Albany County, 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"
equal to 102% of the aggregate amount of deposits from the categories
designated in Appendix A of this 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 County
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 an compliance with applicable
federal minimum risk-based capital requirements.
C. By an eligible surety bond payable to the County 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.
Albany County 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 Albany
County conducts business must be creditworthy. Banks shall provide
their most recent Consolidated Report of Condition (Call Report) at
the request of Albany County. 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
investment officer 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.
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.
This policy shall be reviewed on an annual basis. Any changes
must be approved by the County Executive and the Albany County Legislature.