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 legal
requirements.
B. To adequately safeguard principal.
C. To provide sufficient liquidity to meet all operating
requirements.
D. To obtain a reasonable rate of return.
The governing board's responsibility for administration of the investment
program is delegated to the Supervisor, 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 Town of Union Vale 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 moneys up
to the maximum amounts are as follows:
Depository Name
|
Maximum
Amount
|
|
Officer
|
---|
Bank of Millbrook
|
$10,000,000
|
|
Supervisor/Bookkeeper/Justice
|
Key Bank
|
$10,000,000
|
|
Town Clerk/Tax Collector
|
Premier National Bank
|
$100,000
|
|
Justice
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of Union Vale, 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 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 whose claims-paying ability is rated in the highest
rating category by at least two nationally recognized statistical rating organizations.
The Town of Union Vale 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 at the request of the Town of Union Vale. 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 dealer.
The Supervisor is responsible for evaluating the financial position and maintaining
a listing of proposed depositories, 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.