(A) The Clerk-Treasurer as Fiscal Officer of the town may invest or reinvest any funds that are held by the officer and available for investment in any of the following:
(1) Securities backed by the full faith and credit of the United States Treasury or fully guaranteed by the United States and issued by any of the following:
(a) The United States Treasury;
(b) A federal agency;
(c) A federal instrumentality; and
(d) A federal government sponsored enterprise.
(2) Securities fully guaranteed and issued by any of the following:
(a) A federal agency;
(b) A federal instrumentality; and
(c) A federal government sponsored enterprise.
(B) If an investment under division (A)(1) above is made at a cost in excess of the par value of the securities purchased, any premium paid for the securities shall be deducted from the first interest received and returned to the fund from which the investment was purchased, and only the net amount is considered interest income.
(C) The Clerk-Treasurer may sell any securities acquired and may do anything necessary to protect the interests of the funds invested, including the exercise of exchange privileges which may be granted with respect to maturing securities in cases where the new securities offered in exchange meet the requirements for initial investment.
(D) The Clerk-Treasurer is the legal custodian of securities under this subchapter. The Clerk-Treasurer shall accept safekeeping receipts or other reporting for securities from:
(1) A duly designated depository as prescribed in I.C. 5-13; or
(2) A financial institution located either in or out of the state having custody of securities with a combined capital and surplus of at least $10,000,000 according to the last statement of condition filed by the financial institution with its governmental supervisory body.
(E) The Clerk-Treasurer may invest or reinvest funds that are held by the officer and available for investment in investments commonly known as money market mutual funds that are in the form of securities of or interests in an open-end, no-load, management-type investment company or investment trust registered under the provisions of the federal Investment Company Act of 1940, as amended (15 U.S.C. §§ 80a et seq.).
(1) The investments described in this division may not exceed 50% of the funds held by the officer and available for investment.
(2) The investments described in this division shall be made through depositories designated by the State Board of Finance as depositories for state: deposits under I.C. 5-13-9.5.
(3) The portfolio of an investment company or investment trust described in this division must be limited to the following:
(a) Direct obligations of the United States;
(b) Obligations issued by any of the following:
1. A federal agency;
2. A federal instrumentality; or
3. A federal government sponsored enterprise.
(c) Repurchase agreements fully collateralized by obligations described in division (E)(3)(a) or (E)(3)(b) above.
(4) The form of securities of or interests in an investment company or investment trust described in division (E)(3) above must be rated as one of the following:
(a) AAAm, or its equivalent, by Standard and Poor’s Corporation or its successor; or
(b) Aaa, or its equivalent, by Moody’s Investors Service, Inc. or its successor.
(5) The form of securities in an investment company or investment trust described in division (E)(4)(a) above is considered to have a stated final maturity of one day.
(F) The Clerk-Treasurer may enter into, with any funds that are held by the Clerk-Treasurer and available for investment, repurchase agreements:
(1) With depositories designated by the State Board of Finance as depositories for state deposits under I.C. 5-13-9.5; and
(2) Involving the town’s purchase and guaranteed resale of any interest-bearing obligations: issued; or fully insured or guaranteed, by the United States, a United States government agency, an instrumentality of the United States or a federal government sponsored enterprise. The depository shall determine daily that the amount of money in this type of agreement must be fully collateralized by interest-bearing obligations as determined by their current market value. The collateral for this type of agreement is not subject to the provisions of I.C. 5-13-9-2(c).
(a) If the market value of the obligations being held as collateral falls below the level required under this division (F) or a higher level established by agreement, the depository shall deliver additional securities to the town to make the agreement collateralized to the applicable level. The collateral involved in a repurchase agreement entered into under this division (F) is not subject to the maturity limitation provided in I.C. 5-13-9-5.6.
(b) The Clerk-Treasurer may invest in repurchase agreements without entering into a contract under I.C. 5-13-11 for an investment cash management system.
(G) The Clerk-Treasurer may invest or reinvest any funds that are held by the Clerk-Treasurer and available for investment in obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Redevelopment or the African Development Bank.
(H) The Clerk-Treasurer may invest or reinvest any funds that are held by the Clerk-Treasurer and available for investment in participation in loans, pursuant to the provisions of I.C. 5-13-9-3.5.
(I) The Clerk-Treasurer may deposit, invest or reinvest any funds that are held by the Clerk-Treasurer and available for investment in transaction accounts issued or offered by a designated depository of the town for the rates and terms agreed upon periodically by the Clerk-Treasurer and the designated depository.
(J) (1) The Clerk-Treasurer may deposit, invest or reinvest any funds that are held by the officer and available for investment in certificates of deposit issued or offered by a designated depository of the town.
(2) The Clerk-Treasurer making a deposit in a certificate of deposit shall obtain quotes of the specific rates of interest for the term of that certificate of deposit that each designated depository will pay on the certificate of deposit. Quotes may be solicited and taken by telephone. A memorandum of all quotes solicited and taken shall be retained by the Clerk-Treasurer as a public record of the town under I.C. 5-14-3. A deposit made under this division (J) shall be placed in the designated depository quoting the highest rate of interest. If more than one depository submits a quote of the highest interest rate quoted for the investment, the deposit may be placed in any or all of the designated depositories quoting the highest rate in the amount or amounts determined by the Clerk-Treasurer, in the Clerk-Treasurer’s discretion.
(3) If all of the designated depositories of the town decline to issue or receive any deposit account, or to issue or receive the deposit account at a rate of interest equal to the highest rate being offered other investors, investments may be made in the deposit accounts of any financial institution designated for state deposits as a depository by the State Board of Finance under I.C. 5-13-9-5.
(K) The Clerk-Treasurer may invest in certificates of deposit of depositories that are not designated depositories if authorized by ordinance or resolution of the Town Council and pursuant to the provision of I.C. 5-13-9-5.
(L) The Clerk-Treasurer may participate in joint investment funds as authorized in and according to the provisions of I.C. 5-13-9-10.
(Ord. 2009-4, passed 4-14-2009)