The Treasurer is authorized to invest all available District funds, including proceeds of obligations and reserve funds, in the following types of investment
instruments:
Savings Accounts or Money Market Accounts of designated banks;
Certificates of Deposit issued by a bank or trust company located in and authorized to do business in New York State;
Demand Deposit Accounts in a bank or trust company located in and authorized to do business in New York State; Obligations of New York State; Obligations of the United States government (U.S. Treasury Bills and Notes);
Repurchase Agreements involving the purchase and sale of Direct Obligations of the United States;
Obligations of the United States of America;
Obligations guaranteed by agencies of the United States of America where payment of principal and interest are guaranteed by the United States of America;
Obligations of the state of New York;
Cooperative Investment Programs.
All investments made pursuant to this investment policy will comply with the following conditions:
A. Collateral
Savings accounts, money market accounts, time deposit accounts and certificates of deposit will be fully secured by insurance of the Federal Deposit Insurance Corporation or collateralized. Collateral will be monitored no less frequently than on a monthly basis.
All deposits of the District in excess of the amount insured under the provisions of the Federal Deposit Insurance Act will be secured by a pledge of “eligible securities” with an aggregate market value of at least 102% of the aggregate amount of deposits from obligations issued or fully insured or guaranteed as to the payment of principal and interest by the United States of America or an agency thereof; or obligations issued or fully insured or guaranteed by New York State.
Collateral will not be required with respect to the direct purchase of obligations of New York State, the United States and federal agencies, the principal and interest of which are guaranteed by the United States government.
B. Delivery of Securities
Payment of funds may only be made upon receipt of collateral or other acceptable form of security, or upon the delivery of government obligations whether such obligations are purchased outright, or pursuant to a repurchase agreement. Written confirmation of delivery will be obtained from the custodial bank.
Every repurchase agreement will make payment to the seller contingent upon the seller’s delivery of obligations of the United States to the custodial bank designated by the District, which will not be the repurchase, or in the case of a book-entry transaction, when the obligations of the United States are credited to the custodian’s federal reserve account. The seller will not be entitled to substitute securities. Repurchase agreements will be for periods of 30 days or less. The custodial bank will confirm all transactions in writing to insure that the District’s ownership of the securities is properly reflected in the records of the custodial bank.
C. Written Contracts
Written contracts are required for certificates of deposit and custodial undertakings and repurchase agreements. Only credit-worthy banks and primary reporting dealers will be qualified to enter into a repurchase agreement with the District. With respect to the purchase of direct obligations of the U.S., New York State, or other governmental entities in which monies may be invested, the interests of the District will be adequately protected by conditioning payment on the physical delivery of purchased securities to the District or custodian, or in the case of book-entry transactions, on the crediting of purchased securities to the custodian’s federal reserve system account. All purchases will be confirmed promptly in writing to the District.
The following written contracts are required:
a. Written agreements will be required for the purchase of all certificates of deposit.
b. A written contract will be required with the custodial bank(s).
c. Written contracts will be required for all repurchase agreements. Only credit-worthy banks and primary reporting dealers will be qualified to enter into a repurchase agreement with the District.
The written contract will stipulate that only obligations of the United States may be purchased and that the District will make payment upon delivery of the securities or the appropriate book-entry of the purchased securities. No specific repurchase agreement will be entered into unless a master repurchase agreement has been executed between the District and the trading partners. While the term of the master repurchase agreement may be for a reasonable length of time, a specific repurchase agreement will not exceed thirty (30) days.
D. Designation of Custodial Bank
The Board will designate a commercial bank or trust company authorized to do business in the state of New York to act as the custodial bank of the District’s investments. However, securities may not be purchased through a repurchase agreement with the custodial bank.
When purchasing eligible securities, the seller will be required to transfer the securities to the District’s custodial bank.
E. Selection of Financial Institutions
The District will maintain a list of financial institutions approved for investment purposes. All financial institutions with which the District conducts business must be credit-worthy.
Investments in time deposits and certificates of deposit are to be made only with commercial banks or trust companies, as permitted by law.
F. Purchase of Investments
The Assistant Superintendent for Business is authorized to contract for the purchase of investments:
Directly, including through a repurchase agreement, with a commercial bank or trust company authorized to do business in New York State.
By participation (including participation as the lead, managing or agent participant) in a cooperative investment program with another authorized governmental entity (or any number of such entities) pursuant to NYS Comptroller Opinion No. 88-46 (e.g., the Cooperative Liquid Assets Securities System or “CLASS”).
All purchased obligations, unless registered or inscribed in the name of the District, will be purchased through, delivered to and held in the custody of a bank or trust company authorized to do business in New York State; provided, however, the securities underlying a repurchase agreement must be in the ownership of the District. Such obligations will 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 will be confirmed in writing to the District by the bank or trust company. Any obligation held in the custody of a bank or trust company will be held pursuant to a written custodial agreement as described in General Municipal Law Sections 10 and 11.
The custodial agreement will provide that securities held by the bank or trust company, as agent of and custodian for, the District, 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 will describe how the custodian will confirm the receipt and release of the securities. Such agreement will include all provisions necessary to provide the District with a perfected interest in the securities.
G. Operations, Audit, and Reporting
The Treasurer or designee will authorize the purchase and sale of all securities and execute contracts for investments and deposits on behalf of the District. Oral directions concerning the purchase or sale of securities will be confirmed in writing. The District will pay for purchased securities upon the simultaneous delivery or book-entry thereof.
The District will encourage the purchase and sale of securities through a competitive or negotiated process involving solicitation of at least three quotations for each transaction.
The independent auditors will audit the investment proceeds of the District for compliance with the provisions of this Investment Regulation.
Monthly investment reports will be furnished to the Board if applicable.
Adoption date: December 1, 1995
Amended date: December 15, 2008
Amended date: November 16 2020
Reviewed date: November 30, 2021
Amended date: October 24, 2022
Reviewed date: July 13, 2023
Reviewed date: August 8, 2024
Reviewed date: September 4, 2025