[HISTORY: Adopted by the Legislature of the
County of Putnam 12-28-1993 by L.L. No. 1-1994. Amendments noted where
applicable.]
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:
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.Â
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.Â
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.Â
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.Â
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.Â
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.Â
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)Â
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)Â
The custodian shall confirm the receipt, substitution
or release of the securities held on behalf of the County.
(3)Â
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)Â
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)Â
The County requires a margin of maintenance of 102%
of the uninsured portion of deposits collateralized.
(6)Â
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)Â
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)Â
The County requires a monthly (quarterly if approved
by the Commissioner of Finance) update on third party collateral security
(end of month statement).
(9)Â
The County requires that there be no subcustodian.
A.Â
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)Â
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)Â
Through a deposit placement program, certificates of deposit in one
or more "banking institutions," as defined in Banking Law Section
9-r;
(3)Â
Obligations of the United States of America;
(4)Â
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)Â
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)Â
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)Â
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)Â
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)Â
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)Â
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.Â
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.Â
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)Â
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)Â
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)Â
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)Â
NYCLASS (New York Cooperative Liquid Assets Security System).
[Added 4-2-2019 by L.L. No. 7-2019]
(c)Â
J.P. Morgan Securities LLC.
[Added 5-26-2022 by L.L. No. 9-2022]
B.Â
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.Â
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.