INVESTMENT POLICY

§ 36.01 POLICY.

   It is the policy of the village to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the village and conforming to all state and local statutes governing the investment of public funds.

(2007 Code, § 1-6-1)

§ 36.02 SCOPE.

   This policy includes all funds by the Board of Trustees.

(2007 Code, § 1-6-2)

§ 36.03 PRUDENCE.

   (A)   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 capital, as well as the probable income to be derived.

   (B)   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.

(2007 Code, § 1-6-3)

§ 36.04 OBJECTIVE.

   (A)   The primary objective, in order of priority, shall be:

      (1)   Legality: conformance with federal, state and other legal requirements;

      (2)   Safety: preservation of capital and protection of investment principal;

      (3)   Liquidity: maintenance of sufficient liquidity to meet operating requirements; and

      (4)   Yield: attainment of market rates of return.

   (B)   The portfolio should be reviewed periodically as to its effectiveness in meeting the village’s needs for safety, liquidity, rate of return, diversification and its general performance.

(2007 Code, § 1-6-4)