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Putnam County, NY
 
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Table of Contents
Table of Contents
Code
New Laws (7) Index
[HISTORY: Adopted by the Legislature of the County of Putnam 12-28-1993 by L.L. No. 1-1994. Amendments noted where applicable.]
ATTACHMENTS
Attachment 1 - Appendix A: Schedule of Eligible Securities
The investment policy applies to all moneys and other financial resources available for investment on behalf of Putnam County or entrusted to Putnam County in a fiduciary capacity.
The primary objectives of the Putnam County'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).
D. 
To obtain a reasonable rate of return (yield).
The administration of the investment program is delegated to the Commissioner of Finance, pursuant to § 4.02(a) of the Putnam County Charter. The Commissioner of Finance 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.
It is the policy of Putnam County for all moneys collected by any officer or employee of Putnam County government to transfer those funds to the Commissioner of Finance on his/her demand. The Commissioner of Finance 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 7-5-2000 by L.L. No. 8-2000; 8-1-2000 by L.L. No. 12-2000; 8-7-2001 by L.L. No. 14-2001; 2-4-2003 by L.L. No. 11-2003; 2-3-2009 by L.L. No. 5-2009; 10-6-2009 by L.L. No. 17-2009; 12-28-2009 by L.L. No. 23-2009; 4-8-2015 by L.L. No. 5-2015; 2-3-2016 by L.L. No. 4-2016; 7-5-2017 by L.L. No. 7-2017; 4-2-2019 by L.L. No. 7-2019; 10-6-2020 by L.L. No. 4-2020; 8-3-2021 by L.L. No. 6-2021]
The banks and trust companies authorized for the deposit of monies up to the maximum amounts are:
Depository Name
Maximum Amount
JP Morgan Chase Bank NA
$40,000,000
Key Bank
$40,000,000
M&T Bank
$40,000,000
People’s United Bank NA
$20,000,000
Putnam County National Bank
$20,000,000
PCSB Commercial Bank subsidiary of PCSB
$30,000,000
Signature Bank
$40,000,000
Sterling Bank
$20,000,000
TD Bank
$40,000,000
Tompkins Mahopac National Bank
$30,000,000
Webster
$40,000,000
Wells Fargo
$40,000,000
In accordance with the provisions of General Municipal Law § 10, all deposits of Putnam 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, as 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: Appendix A 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 Putnam 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 in compliance with applicable federal minimum risk-based capital requirements; or
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 a third party bank or trust company (for purposes of this policy, a trust company is deemed to be a third party if it is a separately chartered corporation than a bank) subject to security and custodial agreements approved by the County Attorney.
B. 
The security agreement shall provide that the eligible securities are being pledged to secure Putnam County deposits together with agreed upon interest, if any, and any costs or expenses arising out of the collection of such deposits upon default.
C. 
The custodial agreement shall include all provisions necessary to provide Putnam County a perfected security interest in the securities pledged as collateral and shall provide the following:
(1) 
The securities held by the authorized bank or trust company as agent of and custodian for Putnam County 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 security for any other deposit or other liabilities.
(2) 
The custodian shall confirm the receipt, substitution or release of the securities held on behalf of the County.
(3) 
The frequency of revaluation of eligible securities and the substitution of collateral when a change in the rating of a security may cause ineligibility must be provided.
(4) 
The types of collateral used to secure County deposits must be in accordance with the most current legislation authorizing various types of collateral and approved by the County.
(5) 
The County requires a margin of maintenance of 102% of the uninsured portion of deposits collateralized.
(6) 
The County prefers written consent from the Commissioner of Finance (but will accept a telephone call and subsequent confirmation by the Commissioner of Finance) for the release and substitution of securities affecting the County's custodial account.
(7) 
The County requires the banking depository to provide blank assignment forms of the pledged collateral to the custodial bank in the event that the depository bank defaults.
(8) 
The County requires a monthly (quarterly if approved by the Commissioner of Finance) update on third party collateral security (end of month statement).
(9) 
The County requires that there be no subcustodian.
A. 
As authorized by Genenal Municipal Law § 11, Putnam County authorizes the Commissioner of Finance to invest moneys not required for immediate expenditure for terms not to exceed its projected cash flow needs in the following types of investments:
[Amended 5-26-2022 by L.L. No. 9-2022]
(1) 
Special time deposit accounts in, or certificates of deposit issued by, a bank or trust company located and authorized to do business in New York State;
(2) 
Through a deposit placement program, certificates of deposit in one or more "banking institutions," as defined in Banking Law Section 9-r;
(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: With the approval of the state comptroller, obligations issued pursuant to Local Finance Law Section 24.00 or 25.00 (i.e., Tax Anticipation Notes and Revenue Anticipation Notes) by any municipality, school district, or district corporation in New York State other than the County of Putnam;
(6) 
General obligation bonds and notes of any state other than New York State, provided that such bonds and notes receive the highest rating of at least one independent rating agency designated by the state comptroller;
(7) 
Obligations of any corporation organized under the laws of any state in the United States maturing within 270 days, provided that such obligations receive the highest rating of two independent rating services designated by the state comptroller, and that the issuer of such obligations has maintained such ratings on similar obligations during the preceding six months; provided, however, that the issuer of such obligations need not have received such rating during the prior six month period if such issuer has received the highest rating of two independent rating services designated by the state comptroller and is the successor or wholly-owned subsidiary of an issuer that has maintained such ratings on similar obligations during the preceding six month period, or if the issuer is the product of a merger of two or more issuers, one of which has maintained such ratings on similar obligations during the preceding six-month period; provided, however, that no more than $250,000,000 may be invested in such obligations of any one corporation;
(8) 
Bankers' acceptances maturing within 270 days which are eligible for purchase in the open market by federal reserve banks and which have been accepted by a bank or trust company which is organized under the laws of the United States or of any state thereof, and which is a member of the federal reserve system and whose short-term obligations meet the criteria outlined in Subsection A(7) of this section; provided, however, that no more than $250,000,000 may be invested in such bankers' acceptances of any one bank or trust company;
(9) 
Obligations of, or instruments issued by, or fully guaranteed as to principle and interest by, any agency or instrumentality of the United States acting pursuant to a grant of authority from the Congress of the United States, including but not limited to, any federal home loan bank or banks, the Tennessee Valley Authority, the federal national mortgage association, the federal home loan mortgage corporation, and the United States postal service; provided, however, that no more than $250,000,000 may be invested in such obligations of any one agency; or
(10) 
No-load money market mutual funds registered under the Securities Act of 1933, as amended, and operated in accordance with Rule 2a-7 of the Investment Company Act of 1940, as amended, provided that such funds are limited to investments in obligations issued or guaranteed by the United States of America, or in obligations of agencies or instrumentalities of the United States of America, where the payment of principal and interest are guaranteed by the United States of America (including contracts for the sale and repurchase of any such obligations) and are rated in the highest rating category by at least one nationally recognized statistical rating organization; provided, however, that no more than $250,000,000 may be invested in such funds.
B. 
All investment obligations shall be redeemable on respective maturity dates as determined by the Putnam County Commissioner of Finance in order to meet expenditure obligations for purposes for which the moneys were provided.
The County of Putnam 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 that conduct business with Putnam County must be creditworthy. Banks shall provide their most recent consolidated report of condition (call report) and/or their most recent consolidated financial statements at the request of the Commissioner of Finance. 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 Commissioner of Finance is responsible for evaluating the financial position and maintaining a listing of proposed depositories, trading partners and custodians. such listing shall be evaluated on an annual basis or as warranted by changing economic conditions.
A. 
The Commissioner of Finance is authorized to contract for the purchase of investments.
[Amended 7-5-2000 by L.L. No. 9-2000; 2-3-2009 by L.L. No. 5-2009]
(1) 
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’s Opinion No. 88-46, and the specific program has been approved by the Putnam County Legislature.
(2) 
By utilizing eligible cash management program(s), approved by the Putnam County Legislature in which can be invested a maximum amount of $30,000,000. Approved Cash Management programs include:
[Amended 10-6-2009 by L.L. No. 17-2009; 10-6-2020 by L.L. No. 4-2020]
(a) 
New York Liquid Asset Fund (NYLAF) – PMA Financial Network, LLC.
[Amended 4-8-2015 by L.L. No. 5-2015; 8-3-2021 by L.L. No. 6-2021]
(b) 
NYCLASS (New York Cooperative Liquid Assets Security System).
[Added 4-2-2019 by L.L. No. 7-2019]
(c) 
J.P. Morgan Securities LLC.
[Added 5-26-2022 by L.L. No. 9-2022]
B. 
All purchased obligations, unless registered or inscribed in the name of Putnam County, 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 Putnam County 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, as agent of and custodian for, Putnam County, 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 securities. Such agreement shall include all provisions necessary to provide Putnam County a perfected interest in the securities.
The Commissioner of Finance, within 30 days of the end of each quarter in the County fiscal year, shall submit to the Audit and Administration Committee of the Putnam County Legislature, a quarterly report on the County's investments and deposits. This report shall contain information to the amounts and terms of each investment and deposit, total interest revenue earned to date and a comparison to the prior year.
The Investment and Deposit Committee shall consist of the County Executive, Chairman of the Legislature, Chairman of the Audit and Administration Committee, County Auditor, Commissioner of Finance and County Attorney. The Commissioner of Finance shall serve as Chairman of this Committee, and is authorized to convene meetings of this Committee in order to examine changes in this policy.