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 Village's investment activities are,
in priority of order:
A. To conform to all applicable federal, state and other
legal requirements (legal).
B. To adequately safeguard principal (safety).
C. To provide sufficient liquidity to meet all operating
requirements (liquidity).
D. To obtain a reasonable rate of return (yield).
The governing board's responsibility for administration of the
investment program is delegated to the chief fiscal officer who shall establish
written procedures for the operation of the investment program consistent
with these investment guidelines. Such procedures shall include an adequate
internal control structure to provide a satisfactory level of accountability
based on a data base or records incorporating description and amounts of investments,
transaction dates and other relevant information and to regulate the activities
of subordinate employees.
Where, in the opinion of the chief fiscal officer and the Board of Trustees,
the diversification of deposits and investments by financial institution,
investment instrument and maturity scheduling is to the advantage and vital
interests of the Village, diversification will be encouraged.
[Amended 3-17-2003 by L.L. No. 5-2003]
The banks and trust companies authorized for the deposit of moneys up
to the following maximum amounts are:
Depository Name
|
Maximum Amount
|
---|
First National Bank of Groton
|
$2,500,000.00
|
In accordance with the provisions of General Municipal Law § 10,
all deposits of the Village of Groton, including certificates of deposit and
special time deposits, in excess of the amount insured under the provisions
of the Federal Deposit Insurance Act shall be secured:
A. By a pledge of eligible securities with an aggregate
market value, or provided by General Municipal Law § 10, equal to
the aggregate amount of deposits from the categories designated in Appendix
A to the policy.
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 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 government
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.
The Village of Groton 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 local government conducts
business must be creditworthy. Banks shall provide their most recent Consolidated
Report of Condition (Call Report) at the request of the Village of Groton.
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 chief fiscal officer 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.
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.
F. No repurchase agreement shall be entered into without
prior approval of the Village Board of Trustees.
Eligible securities shall be as follows:
A. 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.
B. 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.
C. 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.
D. Obligations issued by states (other than the State of
New York) of the United States rated in one of the three highest rating categories
by at least one nationally recognized statistical rating organization.
E. Obligations of counties, cities and other governmental
entities of a state, other than the State of New York, having the power to
levy taxes that are backed by the full faith and credit of such governmental
entity and rated in one of the three highest rating categories by at least
one nationally recognized statistical rating organization.
F. Obligations of domestic corporations rated in one of
the two highest rating categories by at least one nationally recognized statistical
rating organization.
G. Any mortgage-related securities, as defined in the Securities
Exchange Act of 1934, as amended, which may be purchased by banks under the
limitations established by bank regulatory agencies.
H. Commercial paper and bankers' acceptances issued
by a bank, other than the bank, rated in the highest short-term category by
at least one nationally recognized statistical rating organization and having
maturities of not longer than 60 days from the date they are pledged.
I. Zero coupon obligations of the United States
government marketed as treasury strips.