[HISTORY: Adopted by the Town Board of the Town of Hurley 1-14-1993.
Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 35.
The objectives of the investment policy of the local government 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 Chief Fiscal Officer 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.
C.
Obligations of New York State.
D.
Obligations of the United States Government.
E.
Repurchase agreements involving the purchase and sale
of direct obligations of the United States.
All funds except reserve funds may be invested in:
Only reserve funds may be invested in obligations of the local government.
All other local government officials receiving money in their official
capacity must deposit such funds in negotiable order of withdrawal accounts.
All investments made pursuant to this investment policy shall comply
with the following conditions:
A.
Collateral.
(1)
Certificates of deposit 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 local government or a custodial bank with which the local government
has entered into a custodial agreement. The market value of collateral shall
at all times equal or exceed the principal amount of the certificate of deposit.
Collateral shall be monitored no less frequently than weekly, and "market
value" shall mean the bid or closing price as quoted in the Wall Street Journal
or as quoted by another recognized pricing service.
(2)
Securities purchased through a repurchase agreement shall
be valued to market at least weekly.
(3)
Collateral shall not be required with respect to the
direct purchase of obligations of New York State, obligations of the United
States and obligations of federal agencies the principal and interest of which
are guaranteed by the United States Government.
B.
Delivery of securities.
(1)
Repurchase agreements. Every repurchase agreement shall
provide for payment to the seller only upon the seller's delivery of
obligations of the United States to the custodial bank designated by the local
government, or in the case of a book-entry transaction, when the obligations
of the United States are credited to the custodian's federal reserve
bank account. The seller shall not be entitled to substitute securities. Repurchase
agreements shall be for periods of 30 days or less. The custodial bank shall
confirm all transactions in writing to ensure that the local government's
ownership of the securities is properly reflected on the records of the custodial
bank.
(2)
Payment shall be made by or on behalf of
the local government for obligations of New York State, obligations the principal
and interest of which are guaranteed by the United States, United States obligations,
certificates of deposit, and other purchased securities upon the delivery
thereof to the custodial bank or, in the case of a book-entry transaction,
when the purchased securities are credited to the custodial bank's federal
reserve system account. All transactions shall be confirmed, in writing.
