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:
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); and
D. 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,
who shall establish written procedures for the operation of the investment
program consistent with these investment guidelines. Such procedures
shall include an adequate control structure to provide a satisfactory
level of accountability based on a data base or records incorporating
descriptions and amounts of investments, transaction dates and other
relevant information and regulate the activities of subordinate employees.
It is the policy of the City of New Rochelle
to diversify its deposits and investments by financial institution,
by investment instrument and by maturity scheduling.
[Amended 9-27-1994 by Ord. No. 209-1994; 1-20-1998 by L.L. No. 14-1998; 1-19-1999 by Ord. No. 17-1999; 6-18-2002 by Ord. No. 120-2002; 1-16-2007 by Ord. No.
9-2007]
The following banks and trust companies are
authorized for the deposit of moneys:
E. Wachovia Bank/Wells Fargo Bank.
[Amended 2-10-2009 by Ord. No. 25-2009]
H. Key Bank.
[Added 2-10-2009 by Ord. No. 25-2009]
I. Citibank.
[Added 5-20-2015 by Ord.
No. 103-2015]
J. Webster
Bank.
[Added 5-20-2015 by Ord.
No. 103-2015]
K. People's
United Bank.
[Added 5-20-2015 by Ord.
No. 103-2015]
[Amended 1-20-1998 by L.L. No. 14-1998; 1-19-1999 by Ord. No. 17-1999]
In accordance with the provisions of General
Municipal Law § 10, all deposits of the City of New Rochelle,
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 or a pledge of a pro rata portion of a pool 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 (§
42-14) to the policy.
[Amended 1-16-2007 by Ord. No. 9-2007]
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 organization 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.
The City of New Rochelle 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 creditworthy. Banks shall provide their most recent Consolidated
Report of Condition (Call Report) at the request of the City of New
Rochelle. 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 financial officer
is responsible for evaluating the financial position and maintaining
a listing of proposed depositaries, 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 guaranteed by agencies of
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.
[Amended 1-20-1998 by Ord. No. 14-1998; 1-19-1999 by Ord. No. 17-1999]
The Schedule of Eligible Securities shall be
as follows:
A. Obligations issued, or fully insured or guaranteed
as to the payment of principal and interest by the United States of
America, an agency thereof or a United States government sponsored
corporation.
B. Obligations issued or fully guaranteed by the International
Bank for Reconstruction and Development, the Inter-American Development
Bank, the Asian Development Bank and the African Development Bank.
C. Obligations partially insured or guaranteed by any
agency of the United States of America, at a proportion of the market
value of the obligations that represents the amount of the insurance
or guaranty.
D. Obligations issued or fully insured or guaranteed
by the State of New York, obligations issued by a municipal corporation,
school district or district corporation of such state or obligations
of any public benefit corporation which under a specific state statute
may be accepted as security for deposit of public moneys.
E. Obligations issued by states (other than the State
of New York) of the United States rated in one of the three highest
rating categories by at least one nationally recognized statistical
rating organizations.
F. Obligations of Puerto Rico rated in one of the three
highest rating categories by at least one nationally recognized statistical
rating organization.
G. Obligations of counties, cities and other governmental
entities of a state other than the State of New York having the power
to levy taxes that are backed by the full faith and credit of such
governmental entity and rated in one of the three highest rating categories
by at least one nationally recognized statistical rating organization.
H. Obligations of domestic corporations rated in one
of the two highest rating categories by at least one nationally recognized
statistical rating organization.
I. Any mortgage-related securities, as defined in the
Securities Exchange Act of 1934, as amended, which may be purchased
by banks under the limitations established by bank regulatory agencies.
J. Commercial paper and bankers' acceptances issued by
a bank, other than the bank, rated in the highest short-term category
by at least one nationally recognized statistical rating organization
and having maturities of not longer than 60 days from the date they
are pledged.
K. Zero coupon obligations of the United States government
marketed as "treasury strips."