Town of Olive, NY
Ulster County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Town Board of the Town of Olive 4-7-1990. Amendments noted where applicable.]

§ 38-1 Objectives.

The objectives of the investment policy of the Town of Olive are:
A. 
To minimize risk.
B. 
To ensure that investments mature when the cash is required to finance operations.
C. 
To ensure a competitive rate of return.

§ 38-2 Guidelines.

A. 
In accordance with this policy, the Chief Fiscal Officer is hereby authorized to invest all funds, including proceeds of obligations and reserve funds, in:
(1) 
Certificates of deposit issued by a bank or trust company authorized to do business in New York State.
(2) 
Time deposit accounts in a bank or trust company authorized to do business in New York State.
(3) 
Obligations of New York State.
(4) 
Obligations of the United States Government.
B. 
All funds except reserve funds may be invested in:
(1) 
Obligations of agencies of the Federal Government if principal and interest is guaranteed by the United States.
(2) 
With the approval of the State Comptroller, in Revenue Anticipation Notes or Tax Anticipation Notes of other Local Governments in New York State.
C. 
Only reserve funds may be invested in obligations of the Town of Olive.

§ 38-3 Moneys obtained in official capacity.

All other Town of Olive officials receiving money in their official capacity must deposit such funds in negotiable order of withdrawals accounts.

§ 38-4 Conditions for investments.

All investments made pursuant to this Investment Policy shall comply with the following conditions:
A. 
Collateral.
(1) 
All collateral shall be held in third party (custodial) banks with which the Town of Olive has entered into a Custodial Agreement. The market value of the collateral shall at all times equal or exceed the principal amount of the Certificate of Deposit. Collateral shall be monitored no less frequently than semiannually, and "market value" shall mean the bid or closing price as quoted in the Wall Street Journal or as quoted by another recognized pricing service.
(2) 
Collateral shall not be required with respect to direct purchase of obligations of New York State, obligations of the United States and obligations of federal agencies, the principal and interest of which are guaranteed by the United States Government.
B. 
Delivery of securities. Payment shall be made by or on behalf of the Town of Olive for obligations of New York State, obligations the principal and interest of which are guaranteed by the United States, United States obligations, certificates of deposit, and other purchased securities upon delivery thereof to the custodial bank, or to the Town of Olive, or in the case of a book-entry transaction, when the purchase securities are credited to the Custodial Bank's Federal Reserve System account. All transactions shall be confirmed in writing.
C. 
Written contracts. Written contracts are required for certificates of deposit and custodial undertakings. With respect to the purchase of obligations of the United States, New York State or other governmental entities, etc. in which moneys may be invested, the interest of the Town of Olive will be adequately protected by conditioning payment on the physical delivery of purchased securities to the Town of Olive or Custodian, or in the case of book-entry transactions, on the crediting of purchased securities to the Custodian's Federal Reserve System Account. All purchases will be confirmed in writing to the Town of Olive.

§ 38-5 Purchase and sale of securities.

The Town of Olive will encourage the purchase and sale of securities and certificates of deposit through a competitive or negotiated process involving telephone solicitation of at least two bids for each transaction. The Town of Olive shall use only those institutions with which they are familiar and can expect good service and creditability.

§ 38-6 Annual audit.

At the time independent auditors conduct the annual audit of the Town of Olive accounts and financial affairs of the Town of Olive, the independent auditors shall audit the investments of the Town of Olive for compliance with the provisions of these investment guidelines.

§ 38-7 Semiannual investment report.

Within 60 days of the end of each of the six months of the fiscal year, the Chief Fiscal Officer shall prepare and submit to the Town Board of the Town of Olive a semiannual investment report which indicates new investments, the inventory of existing investments, and such other matters as the Chief Fiscal Officer deems appropriate.

§ 38-8 Annual investment report.

A. 
Within 60 days of the end of the fiscal year, the Chief Fiscal Officer shall prepare and submit to the Town Board of the Town of Olive an annual investment report; the results of the annual independent audit; the investment income record; and such other matters as the Chief Fiscal Officer deems appropriate.
B. 
The Town Board of the Town of Olive shall review and approve the annual investment report.

§ 38-9 Review of guidelines.

At least annually, the Town Board shall review and amend, if necessary, these investment guidelines.

§ 38-10 Prior investments.

The provisions of these investment guidelines and any amendments hereto shall take effect prospectively, and shall not invalidate the prior selection of any custodial bank or prior investment.