This investment policy applies to all moneys and other financial
resources available for investment on its own 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 and other
officers having custody of money who 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 database 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 the Village to diversify its deposits and
investments by financial institution, by investment instrument, and
by maturity scheduling.
The banks and trust companies authorized for the deposit of
monies up to the following maximum amounts are:
Depository Name
|
Maximum Amount
|
Officer
|
---|
Five Star Bank
|
$3,000,000
|
Clerk-Treasurer
|
Community Bank
|
$1,600,000
|
Clerk-Treasurer
|
JP Morgan Chase
|
$1,600,000
|
Clerk-Treasurer
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Village, 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,
or provided by General Municipal Law § 10, equal to the
aggregate amount of deposits from the categories designated in Appendix
A to the 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 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 claim - paying ability is
rated in the highest rating category by at least two nationally recognized
statistical rating organizations
The Village 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 credit worthy. Banks shall provide
their most recent Consolidate Report of Condition (Call Report) at
the request of the Village. Security dealers not affiliated with the
bank shall be required to be classified as reporting dealers affiliated
with the New York Federal Reserve Bank, as primary dealers. The chief
fiscal officer and other officers having custody of money are responsible
for evaluating the financial position and maintaining a list 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 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.