[HISTORY: Adopted by the Town Board of the Town of Marlborough 2-28-1994.
Amendments noted where applicable.]
GENERAL REFERENCES
Purchasing — See Ch. 38.
This investment policy applies to all moneys and other financial resources
available for investment on its own behalf or by any other entity or individual.
The primary objectives of local governments' investment activities are,
in priority order, to:
The Town Board's responsibility for administration of the investment
process is delegated to the Town Supervisor, as Treasurer, who shall establish
written procedures for the operation of the investment program consistent
with these investment guidelines. Such procedures shall include a data base
incorporating description and amounts of information and to regulate the activities
of subordinate employees.
Investments shall be made with judgment and care, not for speculation,
but for investments, considering the safety of the principal as well as the
probable income to be derived.
It is the policy of the Town Board to diversify its deposits and investments
by financial institutions, by investment instrument and by maturity scheduling.
A.
It is the policy of the Town Board for all moneys collected
by any officer or employee of the government to transfer those funds to the
Treasurer within three (3) days of deposit or within the time period specified
in law, whichever is shorter.
B.
The Treasurer 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 and that transactions are executed in accordance with management's
authorization and recorded properly in compliance with applicable laws and
regulations.
The bank and trust companies authorized for deposit of moneys up to
the following amounts are:
A.
Key Bank of South East New York: maximum amount one million
five hundred thousand dollars ($1,500,000.).
B.
M & T Bank: maximum amount one million five hundred
thousand dollars ($1,500,000.).
C.
First National Bank of Rhinebeck: maximum amount one
million five hundred thousand dollars ($1,500,000.).
A.
In accordance with the provisions of General Municipal
Law § 10, all deposits of the Town of Marlborough, including certificates
of deposit and special time deposits, in excess of the amounts insured under
the provisions of the Federal Deposit Insurance Act shall be secured by a
pledge of eligible securities with an aggregate market value equal to the
aggregate amount of deposits.
B.
Eligible securities used for collateralizing deposits
shall be held by the depository and/or a third-party bank or trust company
subject to security and custodial agreements.
C.
The security agreement shall provide that eligible securities
are being pledged to secure local government deposits, together with agreed
upon interest, if any, and any costs or expenses arising out of the collection
of such deposits upon default. It shall also provide the conditions under
which the securities may be sold, presented for payment, substituted or released
and the events which will enable the local government to exercise its rights
against the pledged securities. In the event that the securities are not registered
or inscribed in the name of the local government, such securities shall be
delivered in a form suitable for transfer or with an assignment in blank to
the Town of Marlborough or its custodial bank.
D.
The custodial agreement shall provide that securities
held by the bank or trust company or agent of and custodian for the local
government 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 should also describe that the custodian shall confirm the receipt,
substitution or release of the securities. The agreement shall provide for
the frequency of revaluation of eligible securities and for the substitution
of securities when a change in the rating of a security may cause ineligibility.
Such agreement shall include all provisions necessary to provide the local
government a perfected interest in the securities.
A.
As authorized by General Municipal Law § 11,
the Town of Marlborough authorizes the Treasurer to invest moneys not required
for immediate expenditure for terms not to exceed its projected cash flow
needs in the following types of investments:
B.
All investment obligations shall be payable or redeemable
at the option of the Town of Marlborough within such times as the proceeds
will be needed to meet expenditures for purposes for which the moneys were
provided and, in the case of obligations purchased with the proceeds of bonds
or notes, shall be payable or redeemable at the option of the Town of Marlborough
within two (2) years of the date of purchase.
