In order to minimize default-risk the Fiscal Officer will require delivery of investment instruments as follows:
(A) Government securities.
(1) All authorized investment securities shall be settled “delivery versus payment” method. Book entry or physical securities shall be safe kept by a third-party safekeeping agent, in the agent's (a) Federal Reserve customer account, (b) correspondent money center bank customer custody account, or (c) Depository Trust Corporation (DTC) customer custody account.
(2) As an alternative, at the option of the village, securities may be safe kept by recognized primary government securities dealers and the securities dealer subsidiaries of Ohio based financial institutions if the securities are segregated from dealer securities into customer custodial accounts.
(3) Each delivery and safekeeping shall be evidenced by a safekeeping receipt.
(B) Nonnegotiable interest bearing time certificates of deposit
(1) The village will take possession for safekeeping in its own vaults, all certificates of deposit or document(s) evidencing a certificate of deposit in accordance with R.C. § 135.14, the acceptable time of delivery being not later than 2:00 p.m. the day of settlement.
(2) In the event that the certificate of deposit or document(s) evidencing the certificate of deposit must be prepared at a home office of the issuing bank outside the village, the village will require an overnight safekeeping document and delivery of the certificate of deposit or document(s) evidencing a certificate of deposit no later than 12:00 noon the first business day after the date of settlement.
(Ord. 98-6-7, passed - -98)