This investment policy applies to all moneys
and other financial resources 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).
D. To obtain a reasonable rate of return (yield).
The governing board's responsibility for administration
of the investment program is delegated to the Town 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 Greenville 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 following maximum amounts are:
Depository Name
|
Maximum Amount
|
Officer
|
---|
Fleet Bank
|
$1,500,000
|
Town Supervisor
|
National Bank of Florida
|
$1,500,000
|
Town Supervisor
|
Orange County Trust
|
$1,500,000
|
Town Supervisor
|
Bank of New York
|
$1,500,000
|
Town Supervisor
|
In accordance with the provisions of General
Municipal Law, § 10, all deposits of the Town of Greenville,
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.
The Town of Greenville 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 Town of Greenville.
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 Town 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 obligations of the
United States of America and obligations of agencies of the United
States of America where principal and interest are guaranteed by the
United States of America.
C. No substitution of securities will be allowed.
D. The custodian shall be a party other than trading
partner.