A. Prudence:
1. The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion, and the liquidity and the sale of securities are carried out in accordance with the terms of this chapter.
2. Investments shall be made with judgment and care under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their principal as well as the probable income to be derived.
B. Ethics And Conflicts Of Interest: In addition to the prohibitions contained in the Public Funds Investment Act, officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Village Board of Trustees any material financial interests in financial institutions that conduct business with the Village, and they shall further disclose any large personal financial or investment positions that could be related to the performance of the Village portfolio.
C. Management And Administration Of Program: The establishment of investment policies is the responsibility of the Village Board of Trustees. Management and administrative responsibility for the investment program of the Village is hereby delegated to the Village Clerk who shall establish written procedures for the operation of the investment program consistent with this investment policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in any investment transaction except as provided under the terms of this policy and the procedures established by the Village Clerk. The Village Clerk shall be responsible for all transactions undertaken and shall establish a system of internal controls to safeguard Village assets. The Village Clerk may from time to time amend the written procedures in a manner not inconsistent with this chapter or with State law.
D. Maintaining Public Trust: All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid any transactions that might impair public confidence in the Village. (Ord. 12-03, 3-5-2012)