[HISTORY: Last adopted by the Rockland County
Legislature 4-16-2024 by Res. No. 231-2024. Amendments noted where applicable.]
This Investment Policy for the County of Rockland ("Investment
Policy") applies to all moneys and other financial resources available
to the County of Rockland for investment on its own behalf or on behalf
of any other entity or individual.
The primary objectives of the County of Rockland's investment
activities are, in priority order:
The governing board's responsibility for administration of the
investment program is delegated to the Commissioner of Finance, who
shall establish written procedures for the operation of the investment
program consistent with these investment guidelines and which shall
be approved annually by the Rockland County Legislature. Such procedures
shall include an adequate 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.
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 County of Rockland to govern
effectively.
B.
Investments shall be made with judgment and care, under circumstances
then prevailing, which persons of prudence, 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. 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.
It is the policy of the County of Rockland to diversify its
deposits and investments by financial institutions, by investment
instruments, and by maturity scheduling.
It is the policy of the County of Rockland for all money collected
by any officer or employee of the government to transfer those funds
to the Commissioner of Finance immediately, or within the time period
specified by law. The Commissioner of Finance shall advise the Legislature
if funds are not timely transferred. The Commissioner of Finance 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, that transactions are executed in accordance with management's
authorization and recorded properly, and are managed in compliance
with applicable laws and regulations.
A.
The
banks, dealers and trust companies authorized for the deposit of monies,
or purchase of permitted investments, up to the maximum amount of
$350,000,000 are:
(1)
Citibank, N.A.
(2)
Wells Fargo Bank, N.A.
(3)
JP Morgan Chase Bank, N.A.
(4)
New York Cooperative Liquid Asset Securities System ("NYCLASS").
(5)
New York Cooperative Liquid Asset Securities System ("NYCLASS - PRIME").
(6)
Orange Bank & Trust Company.
(7)
Capital One Bank.
(8)
TD Bank.
(9)
Citizens Bank, N.A.
(10)
M & T Bank.
(11)
Key Bank.
(12)
Webster Bank, N.A.
B.
The
above-mentioned depositories shall provide to the Commissioner of
Finance, not later than November 30 of each year, a letter describing
their level of compliance with the United States Community Reinvestment
Act,[1] stating how they plan to meet the neighborhood banking
needs of Rockland's economically underprivileged communities. Within
30 days of receipt, the Commissioner of Finance shall provide copies
of these responses to the County Executive and the Chairman of the
Legislature. The Commissioner of Finance shall be responsible for
communicating these reporting requirements of the County Policy to
the depository banks.
[1]
Editor's Note: See 12 U.S.C. § 2901 et seq.
In accordance with the provisions of General Municipal Law § 10,
all deposits of the County of Rockland, including certificates of
deposit and special time deposits, in excess of the amount insured
under the provisions of the Federal Deposit Insurance Act[1] 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 this policy.[2]
[2]
Editor's Note: Appendix A is included as an attachment to this chapter.
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 100%
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 "irrevocable letter of credit" issued in favor of the
local government by a federal home loan bank (FHLB) whose commercial
paper and other unsecured, short-term debt obligations are rated in
the highest rating category by at least one nationally recognized
statistical rating organization, accept such letter of credit (LOC)
payable to the such local government as security for payment of 100%
of the aggregate amount of public deposits from such officers and
the agreed-upon interest, if any.
D.
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 claims-paying ability is rated
in the highest rating category by at least two nationally recognized
statistical rating organizations.
[1]
Editor's Note: See 12 U.S.C. § 1811 et seq.
A.
Eligible
securities used for collateralizing deposits shall be held by the
depositary and/or a third-party bank or trust company subject to security
and custodial agreements. The security agreement shall provide that
eligible securities are being pledged to secure local 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 County of Rockland or its custodial bank.
B.
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, under 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 County
of Rockland authorizes the Commissioner of Finance to invest moneys
not required for immediate expenditure for terms not to exceed its
projected cash flow needs in the following types of investments:
(1)
Special time deposit accounts;
(2)
Certificates of deposits;
(3)
Obligations of the United States of America;
(4)
Obligations guaranteed by agencies of the United States of America
where payment of principal and interest are guaranteed by the United
States of America;
(5)
Obligations of the State of New York;
(6)
Obligations issued pursuant to Local Finance Law § 24.00
or 25.00 (with approval of the State Comptroller) by any municipality,
school district or district corporation other than the County of Rockland;
(7)
Certificates of participation issued pursuant to General Municipal
Law § 109-b;
(8)
Obligations of this local government, but only with any moneys in
a reserve fund established pursuant to General Municipal Law § 6-c,
6-e, 6-g, 6-h, 6-j, 6-k, 6-m or 6-n.
B.
All investment obligations shall be payable or redeemable at the
option of the County of Rockland 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 County of Rockland within two years of the date of purchase.
The County of Rockland shall maintain a list of financial institutions
approved for investment purposes and establish appropriate limits
to the amount of investments which can be made with each financial
institution. All financial institutions with which the local government
conducts business must be credit-worthy. Security dealers not affiliated
with a bank shall be required to be classified as reporting dealers
affiliated with the Federal Reserve Bank, as primary dealers. The
Commissioner of Finance 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.
A.
The Commissioner of Finance is authorized to contract for the purchase
of investments:
(1)
Directly, including through a repurchase agreement, with an authorized
trading partner.
(2)
By participation in a cooperative program with another authorized
governmental entity pursuant to Article 5G of the requirements set
forth in the Office of the State Comptroller Opinion No. 88-46, and
the specific program has been authorized by the governing board.
(3)
By utilizing an ongoing investment program with an authorized tracking
partner pursuant to a contract authorized by the governing board.
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.
B.
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 County
of Rockland 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.
The custodial agreement shall provide that securities held by the
bank or trust company, as 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 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 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 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.
