The objectives of the investment policies and guidelines of
the Village of Haverstraw are to minimize risk, to ensure that investments
mature when the cash is required to finance operations and to ensure
a competitive rate of return.
All investments made pursuant to the investment policies and
guidelines of the Village of Haverstraw shall comply with the following
conditions:
A. Collateral.
(1) Certificates of deposit shall be fully secured by insurance of the
Federal Deposit Insurance Corporation or by obligations of New York
State or obligations of the United States or obligations of federal
agencies, the principal and interest of which are guaranteed by the
United States, or obligations of New York State local governments.
Collateral shall be delivered to the Village of Haverstraw or a custodial
bank with which the Village of Haverstraw has entered into a custodial
agreement. The market value of collateral shall at all times equal
or exceed the principal amount of the certificate of deposit. Collateral
shall be monitored no less frequently than weekly, 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) Securities purchased through a repurchase agreement shall be valued
to market at least weekly.
(3) Collateral shall not be required with respect to the 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.
(1) Repurchase agreements. Every repurchase agreement shall provide for
payment to the seller only upon the seller's delivery of obligations
of the United States to the custodial bank designated by the Village
of Haverstraw or, in the case of a book-entry transaction, when the
obligations of the United States are credited to the custodian's
Federal Reserve Bank account. The seller shall not be entitled to
substitute securities. Repurchase agreements shall be for periods
of 30 days or less. The custodial bank shall confirm all transactions
in writing to ensure that the Village of Haverstraw's ownership
of the securities is properly reflected on the records of the custodial
bank.
(2) Payment shall be made by or on behalf of the Village of Haverstraw
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 the delivery
thereof to the custodial bank or, in the case of a book-entry transaction,
when the purchased securities are credited to the custodial bank's
Federal Reserve System account. All transactions shall be confirmed
in writing.
C. Written contracts.
(1) Written contracts are required for repurchase agreements, 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
Village of Haverstraw will be adequately protected by conditioning
payment on the physical delivery of purchase securities to the Village
of Haverstraw 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 Village of Haverstraw.
(2) It is, therefore, the policy of the Village of Haverstraw to require
written contracts as follows:
(a)
Written contracts shall be required for all repurchase agreements.
Only creditworthy banks and primary reporting dealers shall be qualified
to enter into a repurchase agreement with the Village of Haverstraw.
The written contract shall provide that only obligations of the United
States may be purchased, and the Village of Haverstraw shall make
payment upon delivery of the securities or appropriate book-entry
of the purchased securities. No specific repurchase agreement shall
be entered into unless a master repurchase agreement has been executed
between the Village of Haverstraw and the trading partners. While
the term of the master repurchase agreement may be for a reasonable
length of time, a specific repurchase agreement shall not exceed 30
days.
(b)
Written contracts shall be required for the purchase of all
certificates of deposit.
(c)
A written contract shall be required with the custodial bank.
A trust bank company chartered by the State of New York must
be designated to act as custodial bank of the Village of Haverstraw's
investments. However, securities may not be purchased through a repurchase
agreement with the custodial bank.
At least annually, and whenever deemed appropriate, the Board
of Trustees of the Village of Haverstraw shall review and amend by
written resolution, if necessary, these investment policies and guidelines
of the Village of Haverstraw.
The provisions of these investment policies and guidelines of
the Village of Haverstraw and any amendments hereto shall take effect
prospectively and shall not invalidate the prior selection of any
custodial bank or prior investment.