2023 New York Laws › GMU - General Municipal › Article 3 - Report of Financial Condition › 39 - Investment Policies for Local Governments.

§  39.  Investment  policies  for  local  governments.  1.  Each local
government, which for purposes of this section shall  include  counties,
cities,   towns,   villages,   school   districts  including  boards  of
cooperative educational services and district corporations,  within  the
meaning  of  that  term  as  set  out  in  subdivision  three of section
sixty-six of the general construction law,  or  any  other  governmental
subdivision  of  the  state,  shall  by resolution adopt a comprehensive
investment policy which details the local government's operative  policy
and   instructions  to  officers  and  staff  regarding  the  investing,
monitoring  and  reporting  of  funds  of  the  local  government.   The
investment policy shall be annually reviewed by the local government.
2.  Funds of the local government, for purposes of this section, shall
consist of all  moneys  and  other  financial  resources  available  for
investment by the local government on its own behalf or on behalf of any
other entity or individual.
3.  The  investment  policy  adopted  by  the  local  government shall
include, but not be limited to, the following:
(a) A list  of  the  permitted  types  of  investments  of  the  local
government, which shall be consistent with the appropriate provisions of
law  relating  to  the  local government and any additional requirements
pursuant to any contract with bondholders and noteholders or established
by the local government.
(b) Procedures and provisions to secure in a satisfactory  manner  the
local government's financial interest in investments.
(c) Standards for written agreements pursuant to which investments are
made. Such standards shall be consistent with the appropriate provisions
of  law relating to the local government and any additional requirements
pursuant to any contract with bondholders and noteholders or established
by the local government.
(d) Procedures for the monitoring, control, deposit and  retention  of
investments and collateral.
(e)  Standards  for  security agreements and custodial agreements with
banks or trust companies authorized to do business in the state  of  New
York,  pursuant  to  which  obligations  and collateral are held by such
banks and trust companies for the local government. Such standards shall
be consistent with the appropriate provisions of  law  relating  to  the
local  government  and  any  additional  requirements  pursuant  to  any
contract with bondholders and noteholders or established  by  the  local
government.
(f)  Standards  for  the  diversification    of investments, including
diversification with respect  to  the  permitted  types  of  investments
listed  in  accordance with paragraph (a) of this subdivision and to the
firms with whom the local government transacts business. Such  standards
may  also  specify  the  maximum  percentage  of  moneys  available  for
temporary investment  or  the  maximum  dollar  amount  that  the  local
government  is  authorized  to  invest  in  any  one  permitted  type of
investment or pursuant to transactions with any one firm.
(g) Standards for the qualification  of  firms  with  whom  the  local
government    transacts    business,    such    as   criteria   covering
creditworthiness, experience, capitalization, size and any other factors
that make a firm capable and qualified to  transact  business  with  the
local government.
(h)  For  purposes of this section, the term "firm" shall include, but
not be limited to, a bank or trust company as defined in subdivision one
of section ten of this chapter, the lead participant  of  a  cooperative
investment   agreement   as   defined  in  subdivision  one  of  section
forty-nine-c of this chapter, and the seller of an  obligation  that  is
purchased pursuant to a repurchase agreement.
4.  Each local government shall have the power to amend its investment
policy from time to time in  accordance  with  the  provisions  of  this
section.