§ 32.335  NOTICE OF INVESTMENT POLICY.
   (A)   Generally. The senior management of any firm, dealer, broker or financial institution shall be given a copy of the township’s investment policies prior to the Treasurer investing or depositing any township funds in such institution.
   (B)   Township investment and depository policy depositories.
      (1)   Depositories. Financial institutions are used as depositories of township funds in accordance with and compliant to resolutions approved by the Board of Trustees and in effect and current at the time deposit is made.
      (2)   Investments.
         (a)   The Treasurer may invest township funds in certificates of deposit, savings accounts, deposit accounts or depository receipts of a bank, but only if the bank, savings and loan association or credit union meeting all criteria as a depository of public funds contained in state law. The standard of prudence to be used shall be the “fiduciary” standard and shall be applied in context of managing an overall portfolio.
         (b)   The prior approval of the Township Board shall be required for the Treasurer to invest in any other lawful investment instruments. The Township Board’s standard of prudence shall be the “fiduciary” standard, which shall be applied in context of managing an overall portfolio.
         (c)   The Township Board may authorize the Treasurer to invest in the following:
            1.   a.   Bonds, securities and other obligations of the United States or an agency or instrumentality of the United States; and
               b.   Commercial paper rated at the time of purchase within the two highest classifications established by not less than two standard rating services and that matures not more than 270 days after the date of purchase.
            2.   Repurchase agreements consisting of instruments listed in division (B)(2)(c)1. above;
            3.   Bankers’ acceptances of United States banks;
            4.   Obligations of this state or any of its political subdivisions that at the time of purchase are rated as investment grade by not less than one standard rating service;
            5.   Mutual funds registered under the Investment Company Act of 1940, Title I of Chapter 686, 54 Stat. 789, 15 U.S.C. §§ 80a-1 to 80a-3 and 80a-4 to 80a-64, with authority to purchase only investment vehicles that are legal for direct investment by a public corporation. However, a mutual fund is not disqualified as a permissible investment solely by reason of either of the following:
               a.   The purchase of securities on a when-issued or delayed delivery basis;
               b.   The ability to lend portfolio securities as long as the mutual fund receives collateral at all times equal to at least 100% of the value of the securities loaned; or
               c.   The limited ability to borrow and pledge a like portion of the portfolio’s assets for temporary or emergency purposes.
            6.   Obligations described in divisions (B)(2)(c)1. through (B)(2)(c)7. if purchased through an interlocal agreement under the Urban Cooperation Act of 1967, Public Act 7 of 1967 (Ex Sess), being M.C.L.A. § 124.501 et seq.;
            7.   Investment pools organized under the Surplus Funds Investment Pool Act, Public Act 367 of 1982, being M.C.L.A. § 129.111 et seq.; and
            8.   The investment pools organized under the Local Government Investment Pool Act, Public Act 121 of 1985, being M.C.L.A. §§ 129.141 et seq.
      (3)   Levels of risk. Decisions and actions involving the township’s investment portfolio shall meet the following criteria.
         (a)   Safety. Safety of principle is the foremost objective of the township’s investment practices.
         (b)   Diversification. The investments shall be diversified by avoiding over concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities and insured certificates of deposits).
         (c)   Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
      (4)   Return on investment.
         (a)   Return on investment is of secondary importance compared to safety and liquidity objectives. Investments shall be selected to obtain a market average rate of return. The core of investments is limited to relatively low-risk securities.
         (b)   The Treasurer may elect to have certificates and other evidence of investments held by a financial institution; provided that the financial institution presents to the Township Treasurer on a quarterly basis, sufficient documentation and acknowledgment of the investment instruments held on behalf of the township.
         (c)   The Treasurer shall provide, on a quarterly basis, a written report to the Township Board concerning the investment of township funds.
   (C)   Compliance with state and federal laws. The township shall comply with all applicable statutes related to public fund investments. Any provisions of this section in conflict with applicable statutes is void.
(Board and Administrative Policies Manual, § 4.39)