§ 40-1Authority and findings.
§ 40-2Adoption of Trust.
§ 40-3Purchase and redemption of shares; custody of funds.
The Pennsylvania Local Government Investment Trust, a nonprofit entity designed by the Pennsylvania State Association of Boroughs as a common law trust, has been formed, in accordance with the authorization, pursuant to Article 9, Section 5, of the Pennsylvania Constitution, contained in the Intergovernmental Cooperation Act of July 12, 1972, P.L. 762 (53 P.S. § 481 et seq.), initially by the Boroughs of Chambersburg and Emmaus. The Declaration of Trust of 23 pages, dated as of February 1, 1981, is herein incorporated by reference with the same effect as if it had been set out verbatim in this and subsequent sections, and a copy shall be filed with the minutes of the Council, along with a copy of the sixteen-page information statement dated March 11, 1981. The Trust has received a no-action letter from the Securities and Exchange Commission. This will make available a convenient method of making, if and when desired, temporary investments with advantageous liquidity, higher yield and clear audit trail, all within the safeguards and authority of Act No. 94 of November 2. 1979, P.L. 458 (53 P.S. § 46316).
Said Declaration of Trust is hereby adopted, and the Borough of Middletown now becomes a settlor of the Pennsylvania Local Government Investment Trust. In compliance with Section 7 of the aforesaid intergovernmental Cooperation Act, it is specified that:
The agreement, conditions and terms of such intergovernmental cooperation appear in the Declaration of Trust and information statement aforesaid.
At any time, by ordinance, this Borough may terminate its participation.
The purpose of the Declaration of Trust and of the purchase of shares thereunder is to invest Borough funds in obligations which are otherwise legal investments for the Borough as part of a pooled arrangement with other governmental units in order to achieve economic and other advantages of pooled investment.
Financing is not necessary (except through the purchase of shares from Borough funds at the discretion of the Borough), and the cost is an indirect cost as a percentage of daily interest yield as specified.
Organizational structure is in terms of management by a Board of Trustees as set forth in the Declaration of Trust and in the bylaws therein provided for.
Property management, as it concerns this Borough, shall consist of discretionary purchase of shares from time to time and redemption thereof as necessary to meet the cash needs of the Borough.
The Administrative Officer of the Borough of Middletown is authorized to purchase shares of the Trust from Borough funds and to redeem shares from time to time under general or specific instructions by the Council. Custody of funds represented by any shares thus purchased shall be vested in the trustees of the Pennsylvania Local Government Investment Trust.