INVESTMENT POLICY- Anytown, Illinois

INVESTMENT POLICY

It is always prudent for any public unit to have an Investment Policy in place for the purpose of safe guarding funds, equitably distributing the investments and maximizing income of the governmental unit. The following policy is adopted for the City/ Village of __________ Treasurer's office.

This Investment Policy applies to the investment under the jurisdiction of the City/ Village of __________ Treasurer. This Investment Policy will also apply to any new funds or temporary funds placed under the jurisdiction of the City/ Village of   __________ Treasurer. The Illinois Compiled Statutes will take precedence except where this policy is more restrictive wherein this policy will take precedence.

The Purpose of this Investment Policy of the City/ Village of __________ Treasurer is to establish cash management and investment guidelines for the stewardship of public funds under the jurisdiction of the City/ Village of __________ Treasurer. The specific objectives of this investment policy will be as follows:

1. Safety of principal.

2. Diversity of investments to avoid unreasonable risks.

3. The portfolio shall remain sufficiently liquid to meet all operating costs which may be reasonably anticipated.

4. The highest interest rate available will always be the objective of this policy combined with safety of principal, which is left to the discretion of the City/ Village of __________ Treasurer, which includes whether or not the City/ Village of Treasurer will require collateralization of any deposits.

5. In maintaining its investment portfolio, the City/ Village of __________ Treasurer shall avoid any transaction that might impair public confidence in the City/Village of __________ Treasurers office.

6. The City/ Village of __________Treasurer will give consideration to the financial institutions positive community involvement when consideration is given to the financial institution to be used as a depository.

7. All funds will be invested for a period of one day or longer, depending on the requirement for the disbursement of funds.

8. All funds shall be deposited within two working days at prevailing rates or better in accordance with Illinois Compiled Statutes.

RESPONSIBILITY

All investment of funds under the control of __________ Treasurer is the direct City/ Village of __________ Treasurer of ___________ Treasurer shall be transactions and shall establish a system of controls subordinates who are directly involved in the investment activities.

ACCOUNTING

All investment transactions shall be recorded of by the City/ Village of ___________ Treasurer or the City/ Village least monthly, listing all active investments. This report will be made available to the City/ Village of ___________ Board/ Council and City/ Village of ___________ Treasurer.

FINANCIAL INSTITUTIONS

The City/ Village of ___________ Treasurer will have the responsibility to select which financial institutions will be depositories for City/ Village of ___________ Treasurer funds.

The City/ Village of ___________ Treasurer will take into consideration security, size, location, condition, service, fees and the community relations involvement of the financial institution when choosing a financial institution.

At no time will the City/ Village of ___________ Treasurer investments exceed 65% of the financial institutions Capital and surplus.

All financial institutions having any type of financial relationships; deposits, investments, loans, etc. are required to provide a complete and current "Call Report" required by their appropriate regulatory authority each calendar quarter within 30 days of the "Call" request date.

The City/ Village of ___________ Treasurer will use investments approved for governmental units as set forth in the most current issue of the Illinois Compiled State Statutes including Securities Exchange Commission registered and AM rated by Fitch and Standard & Poor's money market mutual funds consisting of U.S. Government Treasuries.

It shall be the discretion of the City/ Village of ___________ Treasurer to determine whether or not collateral will be required of financial institutions receiving funds from the City/ Village of ___________ Treasurer. At all times the City/ Village of ___________ Treasurer will require that deposits in excess of 10% of the capital and surplus of a financial institution will be collateralized. The City/ Village of ___________ Treasurer may request collateral for any part of deposits in financial institutions when the City/ Village of ___________ Treasurer determines it to be in the best interests of safeguarding the funds on deposit.

When collateral is required, 105% of the deposit will be required. Only the following collateral will be accepted:

U.S. Government direct securities
Obligations of Federal Agencies
Obligations of Federal Instrumentalities
Obligations of the State of Illinois
Obligations of the City/ Village of ___________
Acceptable Collateral as identified in the Illinois Compiled Statutes              for use by the Treasurer of the State of Illinois.

Investments shall be made with judgement 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 possible income to be derived.

The above standard is established as the standard for professional responsibility and shall be applied in the context of managing the City/ Village of ___________ Treasurer's portfolio.

The City/ Village of ___________ Treasurer is authorized to establish financial accounts for the office of City/ Village of ___________ Treasurer with the advice and consent of the City/ Village of ___________ Board/ Council. At all times either the City/ Village of ___________ Treasurer or City/ Village of ___________ Deputy Treasurer, and the Clerk or Mayor two, jointly, will be authorized to sign on financial accounts of the of City/ Village of ___________ .

End of Policy

Adopted this _____ day of _____________, 19_____ .

_______________         ______________________
Treasurer                             City/ Village Clerk

                                      ______________________
                                            Mayor/ President