(A) The laws of the state and prudent treasury management require that all purchased securities shall be held in safekeeping by either a town account in a third party financial institution, or the town’s safekeeping account in its designated depository bank, or in a Federal Reserve Bank. The safekeeping requirement does not apply to certificates of deposit that are FDIC insured.
(B) Transfers of securities in safekeeping shall be processed with written confirmations. The confirmations will be used for documentation and retention purposes. The Director of Finance must approve release of collateral prior to its removal from the safekeeping account.
(Res. 2009-01, passed 3-7-2009)