[HISTORY: Adopted by the Board of Trustees of the Village
of Island Park at time of adoption of Code (see Ch. 1, General Provisions,
Art. I). Amendments noted where applicable.]
This investment policy applies to all moneys
and other financial resources available for investment on the Town's
behalf or on behalf of any other entity or individual.
The primary objectives of the Town's investment
activities are, in priority order:
The Board of Trustee's responsibility for administration
of the investment program is delegated to the Village Treasurer, 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 database or records
incorporating descriptions and amounts of investments, transaction
dates, and other relevant information and shall 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 Village
of Island Park 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 decisions.
It is the policy of the Village of Island Park
to diversify its deposits and investments by financial institution,
by investment instrument, and by maturity scheduling.
A.
It is the policy of the Village of Island Park for
all moneys collected by any officer or employee of the government
to transfer those funds to the Chief Fiscal Officer within two days
of deposit, or within the time period specified in law, whichever
is shorter.
B.
The Village Clerk 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, that transactions
are executed in accordance with management's authorization and recorded
properly, and are managed in compliance with applicable laws and regulations.
The list of banks and trust companies authorized
for the deposit of moneys up to the maximum amounts is available in
the Village Clerk's office.
In accordance with the provisions of General
Municipal Law § 10, all deposits of the Village of Island
Park, including certificates of deposit and special time deposits,
in excess of amounts 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 as provided by General Municipal Law § 10,
equal to the aggregate amount of deposits from the categories designated
in Appendix A.[1]
[1]
Editor's Note: Appendix A is included at the end of this chapter.
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.
A.
Eligible securities used for collateralizing deposits
shall be held by banks designated by the Board of Trustees, 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 Village to exercise its rights against the pledged securities.
In the event that the securities are not registered or inscribed in
the name of the Village, such securities shall be delivered in a form
suitable for transfer or with an assignment in blank to the Village
of Island Park or its custodial bank.
C.
The custodial agreement shall provide that securities
held by the bank or trust company, or agent of and custodian for the
Village, 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 or revaluation
of eligible securities and for the substitution of securities when
a change in the rating of the security may cause ineligibility. Such
agreement shall include all provisions necessary to provide the Village
a perfected interest in the securities.
A.
As authorized by General Municipal Law § 11,
the Village of Island Park authorizes the Village Treasurer to invest
moneys not required for immediate expenditure for terms not to exceed
its projected cash flow needs in the following types of investments:
(1)
Special time deposit accounts.
(2)
Certificates of deposit.
(3)
Obligations of the United States of America.
(4)
Obligations guaranteed by agencies of the United States
of America where the payment of principal and interest is guaranteed
by the United States of America.
(5)
Obligations of the State of New York.
(6)
Obligations issued pursuant to the Local Finance Law
§ 24.00 or 25.00 (with approval of the State Comptroller)
by any municipality, school district or district corporation other
than the Village of Island Park.
(7)
Obligations of public authorities, public housing
authorities, urban renewal agencies and industrial development agencies
where the general state statutes governing such entities or where
specific enabling legislation authorizes such investments.
(8)
Certificates of participation (COPs) issued pursuant
to General Municipal Law § 109-b.
(9)
Obligations of the Village, but only with any moneys
in the reserve fund established pursuant to General Municipal Law
§ 6-c, 6-d, 6-e, 6-g, 6-h, 6-j, 6-k, 6-l, 6-m or 6-n.
B.
All investment obligations shall be payable or redeemable
at the option of the Village of Island Park 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 Village of Island Park within two years of the
date of purchase.
The Village of Island Park 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 Village conducts business must be creditworthy.
Banks shall provide their most recent Consolidated Report of Condition
(Call Report) at the request of the Village of Island Park. 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 Village Treasurer is responsible for
evaluating the financial position and maintaining a listing of proposed
depositaries, trading partners and custodians. Such listing shall
be evaluated at least annually.
A.
The Village Treasurer 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 Board of Trustees.
(3)
By utilizing an ongoing investment program with an
authorized trading partner pursuant to a contract authorized by the
Board of Trustees.
B.
All purchased obligations, unless registered or inscribed
in the name of the Village, 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 or 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 Village of Island Park 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
Village, 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 Village 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.