[HISTORY: Adopted by the Board of Trustees
of the Village of McGraw 12-6-1994. Amendments noted where applicable.]
GENERAL REFERENCES
Ethics — See Ch. 17.
This investment policy applies to all moneys
and other financial sources available for investment on its own behalf
or on behalf of any other entity or individual.
The primary objectives of the Village of McGraw's
investment activities, in priority order, are to:
The governing board's responsibility for administration
of the investment program is delegated to the Treasurer, 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 data base of records incorporating
descriptions and amounts of investments, transaction dates and other
relevant information.
A.
All participants in the investment process shall seek
to act responsibly as custodians of the public trust and shall avoid
any transaction that might impair public confidence in the Village
of McGraw to govern effectively.
B.
Investments shall be made with judgment and care,
under circumstances then prevailing, which persons of prudent discretion
and intelligence exercise in the management of their own affairs,
not for speculation, but for investment, considering the safety of
the principal as well as the probable income to be derived.
C.
All participants involved in the investment process
shall refrain from personal business activity that could conflict
with proper execution of the investment program or which could impair
their ability to make impartial investment decisions.
A.
It is the policy of the Village of McGraw for all
moneys collected by any officer or employee of the government to transfer
those funds to the Treasurer within five 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 and are managed in compliance with applicable laws and regulations.
The banks and trust companies authorized for
the deposits of moneys up to the following maximum amounts are:
|
Depository
|
Maximum Amount
|
Officer
|
|---|---|---|
|
First National Bank of Cortland
|
$1,500,000.
|
David Alvord, President
|
|
Marine Midland Bank
|
$1,500,000.
|
William Heigle, Branch Manager
|
In accordance with the provisions of General
Municipal Law, § 10, all deposits of the Village of McGraw,
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 by a pledge of eligible securities
with an aggregate market value, oras provided by General Municipal
Law, § 10, equal to the aggregate amount of deposits from
the categories designated in Appendix A to the policy.
A.
Eligible securities used for collateralizing deposits
shall be held by a third party bank or trust company subject to security
and custodial agreements.
B.
The security agreement shall provide that eligible
securities are being pledged to secure local government deposits,
together with an agreement 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 Village of McGraw or its custodial bank.
C.
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 banking 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 Village of McGraw 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 Village of McGraw 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 Village of McGraw within two years of the date of purchase.
A.
The Village of McGraw 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 consolidated report of condition
(call report) at the request of the Village of McGraw. 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.
B.
The Treasurer is responsible for evaluating the financial
position and maintaining a listing of proposed depositories, trading
partners and custodians. Such listings shall be evaluated at least
annually.
B.
All purchased obligations, unless registered or inscribed
in the name of the local government, 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 the Village of McGraw 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.
The custodial agreement shall provide that securities
held by the bank or trust company, as agents of and custodians 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 shall describe
how the custodian shall confirm the receipt and release of the securities.
Such agreement shall include all provisions necessary to provide the
local government a perfected interest in the securities.
Repurchase agreements are not authorized as
investment vehicles by the governing board of the Village of McGraw.
