[HISTORY: Adopted by the Town Board of the Town of Van Buren 10-28-1992. Amendments noted where applicable.]
The objectives of this investment policy are to:
In accordance with this policy, the chief fiscal officer is hereby authorized to invest all funds, including proceeds of obligations and reserve funds, in:
All other town officials receiving money in their official capacity must deposit such funds in negotiable order of withdrawal accounts.
All investments made pursuant to this investment policy shall comply with the following conditions.
Certificates 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 the 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.
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.
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.
The Board shall designate an appropriate banking institution.
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.
When purchasing eligible securities, the seller shall be required to deliver the securities to our custodial bank.
The town will encourage the purchase and sale of securities and certificates of deposit through a competitive or negotiated process involving telephone solicitation of at least three bids for each transaction.
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.
Within 120 days of the end of the fiscal year, the chief fiscal officer shall prepare and submit to the Town Board an annual investment report; recommendations for change in these investment guidelines; the results of the annual independent audit; the investment income record; a list of total fees, commissions or other charges, if any, paid to the custodial bank; and such other matters as the chief fiscal officer deems appropriate.
At least annually, and if practicable, at the organizational meeting of the Town Board, the Board shall review and amend, if necessary, these investment guidelines.