(A) This investment policy applies to the investment of any financial asset of the city. The Finance Director is authorized to invest the city's funds in accordance with S.C. Code § 6-5-10 Investment of Funds by Political Subdivisions and § 11-1-60 Investment of Public Funds in Savings and Loan Associations and Building and Loan Associations.
(B) According to S.C. Code § 6-5-10, the governing body of any municipality may invest money subject to their control and jurisdiction. Those investing public funds are trustees and, therefore, fiduciaries subject to prudent investor standards. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person with familiarity with those matters would use in the conduct of funds of the like character with like aims, to safeguard the principal and maintain the liquidity needs of the city. The actions of the Finance Director or other city appointed investment officers, in the performance of their duties as manager of public funds shall be evaluated using the following "prudent person" standard applied in the context of managing the overall portfolio. Investments shall be made, not for speculation, but for investment, considering the probable safety of the city's capital as well as probable income to be derived. Investment officers acting in accordance with written procedures and the investment policy 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 appropriate action is taken to control adverse developments.
(Ord. 16-21, passed 6-8-21)