It is the policy of the Otsego District Public Library (ODPL) to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow needs of the library and comply with all state statutes governing the investment of public funds.
This investment policy applies to all financial assets of the Otsego District Public Library unless specifically exempted by resolution of the Board.
The primary objectives of this investment policy must be to ensure the safety and relative liquidity of our assets. Prudent consideration will be given to the security of public monies and the availability of those monies to complete the charter mission of ODPL.
Secondary to safety and liquidity of ODPL assets is the return on investment. Subject to the constraints of safety and relative liquidity, ODPL will strive to maximize the return on eligible legal investment instruments.
Delegation of Authority to Make Investments:
The responsibility for depositing ODPL funds and conducting investment transactions shall reside with the treasurer of the board. This shall include the ability to move funds from one institution to another in order to gain a better return.
The governing board of the Otsego District Library, shall select one or more institutions as it’s primary depository(ies). Eligible institutions will be re-examined at the Board’s organizational meeting in January.
Otsego District Public Library may invest in the following types of securities:
- Bonds, bills, or notes of the United States in which the principal interest is fully guaranteed by the United States: or obligations of the state.
- Certificates of deposit by a state or national bank, savings accounts of a state or federal savings and loan association, or certificates of deposit or share certificates of a state or federal credit union organized and authorized to operate in this state.
- Commercial paper rated prime at time of purchase and maturing no more than 270 days after date of purchase.
- Securities issued or guaranteed by agencies or instrumentalities of the United States Government.
- Bankers acceptances issued by FDIC member banks.
- Mutual funds composed of eligible investment vehicles.
- United States government of federal agency obligation repurchase agreements.
- Investment pools composed entirely of eligible instruments.
No financial transaction shall be conducted on behalf of the library with an institution or agent not previously approved by the board.