[HISTORY: Adopted by the Town Board of the Town of LeRay 4-18-2013.[1] Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 31.
[1]
Editor's Note: This resolution also superseded former
Ch. 22, Investment Policy, adopted 6-10-1993, as amended.
This investment policy applies to all moneys and other financial
resources available for investment on its own behalf or on behalf
of any other entity or individual.
The primary objectives of the Town's investment activities
are, in priority order,
The Town Board's responsibility for administration of the
investment program is delegated to the Supervisor, who shall supervise
the operation of the investment program consistent with these investment
guidelines. Such supervision shall include adequate internal controls
to provide a satisfactory level of accountability based on a database
or records incorporating description and amounts of investments, transaction
date and other relevant information and to 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 Town of LeRay 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.
C.
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 Town of LeRay to diversify its deposits
and investments by financial institution, by investment instrument
and by maturity scheduling.
A.
It is the policy of the Town of LeRay that all moneys collected by
any officer or employee of the Town be transferred to the Town Clerk/Receiver,
Town Supervisor or Town Justices within 10 days of deposit or within
the time period specified in law, whichever is shorter.
B.
The Supervisor 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 and that transactions are executed
in accordance with management's authorization and are recorded
properly and are managed in compliance with applicable laws and regulations.
The banks and trust companies authorized for the deposit of
monies up to the maximum amounts are:
Depository Name
|
Maximum Amount
|
Officer
|
---|---|---|
First Niagara Bank, N.A.
|
$8,000,000
|
Supervisor
Town Clerk/Receiver
Town Justices
|
Community Bank, N.A.
|
$5,000,000
|
Supervisor
Town Clerk/Receiver
Town Justices
|
JPMorgan Chase Bank
|
$5,000,000
|
Supervisor
Town Clerk/Receiver
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Town of LeRay, including certificates of deposit
and special time deposits, in excess of the amount insured under the
provision of the Federal Deposit Insurance Act 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 listed below:
(1)
Obligations issued, or fully insured or guaranteed as to the payment
of principal and interest, by the United States of America, an agency
thereof or a United States government-sponsored corporation.
(2)
Obligations partially insured or guaranteed by any agency of the
United States of America, at a proportion of the market value of the
obligation that represents the amount of the insurance or guaranty.
(3)
Obligations issued or fully insured or guaranteed by the State of
New York, obligations issued by a municipal corporation, school district
or district corporation of such state or obligations of any public
benefit corporation which, under a specific state statute, may be
accepted as security for deposit of public moneys.
(4)
Zero coupon obligations of the United States government marketed
as "Treasury strips."
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
140% of the aggregate amount of deposits and the agreed-upon 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 surety bond payable to the Town 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.
A.
Eligible securities used for collateralizing deposits shall be held
by the depository bank or a third-party bank or trust company subject
to security and custodial agreements.
B.
The security agreement shall provide that eligible securities are
being pledged to secure local government 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 Town, such securities shall be delivered in a form suitable for
transfer or with an assignment in blank to the Town of LeRay or its
custodial bank.
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, in 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 Town of
LeRay authorizes the Supervisor and Town Clerk/Receiver to invest
moneys not required for immediate expenditure for terms not to exceed
its projected cash flow needs in the following types of investments:
B.
All investment obligations shall be payable or redeemable at the
option of the Town of LeRay 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 Town of LeRay within two years of the date of purchase.
The Town of LeRay shall maintain a list of financial institutions
and dealers approved for investment purposes and establish appropriate
limits to the amount of investments which can be made with each financial
institution or dealer. All financial institutions with which the Town
conducts business must be credit worthy. Banks shall provide their
most recent Consolidated Report of Condition (call report) at the
request of the Town of LeRay. Security dealers not affiliated with
a bank shall be required to be classified as reporting dealers affiliated
with the New York Federal Reserve Bank, as primary dealers. The Supervisor
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 Supervisor is authorized to contract for the purchase of investments:
(1)
Directly, including through a repurchase agreement, from an authorized
trading partner.
(2)
By participation in a cooperative investment program with another
authorized governmental entity pursuant to Article 5-G of the General
Municipal Law where such program meets all 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 trading
partner pursuant to a contract authorized by the governing board.
B.
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. Such obligations
shall be purchased, sold or presented for redemption for 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 Supervisor 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.
C.
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 Town 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 State 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.