[HISTORY: Adopted by the Town Board of the Town of Chatham 2-14-1991 by Res. No. 44-91. Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 56.
The objectives of the investment policy of the Town of Chatham 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.
In accordance with this policy, the Supervisor is hereby authorized to invest all funds, including proceeds of obligations and reserve funds, in:
A. 
Certificates of deposit issued by a bank or trust company authorized to do business in New York State.
B. 
Time deposit accounts in a bank or trust company authorized to do business in New York State.
All other town officials receiving money in their official capacity must deposit such funds in interest-bearing checking accounts.
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
All investments made pursuant to this investment policy shall comply with the following conditions for collateral: all funds 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 town or a custodial bank with which the town has entered into a custodial agreement. The market value of collateral shall at all times equal or exceed the total amount of town funds on deposit. Collateral shall be monitored quarterly to ensure its sufficiency.
The Supervisor shall maintain a cash flow statement to help in determining amounts that may be put in certificates of deposit and for what periods of time.
The Supervisor shall strive to obtain the best rate of return for the town by investigating current interest rates at banks within reasonable distance of the Town of Chatham.
Within 30 days of the end of each of the first three quarters of the fiscal year, the Supervisor shall prepare and submit to the Town Board a quarterly investment report which indicates new investments, the inventory of existing investments and such other matters as the Supervisor deems appropriate.
Within 60 days of the end of the fiscal year, the Supervisor shall prepare and submit to the Town Board an annual investment report, recommendations for change in these investment guidelines, the investment income record and any other matters that the Supervisor deems appropriate.
The Town Board shall review and approve the annual investment report after receiving it from the Supervisor. At this time they shall also review and amend, if necessary, these investment guidelines.