1996-27soultion No. 96- 27
Cor p orat9esolution for Deposit Accounts and Other inancial Services
To: Harris Bank Barrington, N.A. ( "Bank "), Barrington
I the undersigned, r &lerk the Village of Buffalo Grove, IL.
(Name of Corporation in full)
a Corporation organized and existing under the laws of the State of Illinois , do hereby certify that at a meeting
of the Board of Directors of said Corporation duly held on the 15th day of April. 1996 , at which a quorum was present
and acting throughout, the following resolutions were unanimously adopted and recorded in the minute books of said
Corporation, kept by me, and are in accord with and pursuant to the Articles of Incorporation and By -laws of said Corporation
and are now in full force and effect:
WHEREAS, in the conduct of the business of this Corporation, it is necessary that bank accounts in the name of the
Corporation or its agents be opened, maintained, or discontinued, at the Bank;
WHEREAS, it is now desired by this Board of Directors to authorize and empower certain officers of the Corporation
to make such banking arrangements as they may deem necessary and proper for this purpose without any further action on
the part of the Board.
RESOLVED, that any 2 of the following officers: Village President, Village Clerk, Village
(one, two, etc.) (Indicate Title of Office only)
Manager, and Director of Finance are hereby authorized:
To designate in writing at any time and from time to time officers (including themselves), agents and employees of the
Corporation each of whom, on behalf of the Corporation, is authorized to do any one or more of the following-
(a) to open, maintain, or discontinue any account or accounts with the Bank as they may see fit;
(b) to withdraw any of the funds deposited in the Bank upon checks, notes, drafts, bills of exchange, acceptances,
undertakings or other orders for the payment of money when made, signed, drawn, accepted or endorsed on behalf
of the Corporation by such of the persons so authorized;
(c) by written instruction to the Bank, ie.: Agreement for Facsimile Signature on Checks and Other Orders for Payrnent,
to authorize and prescribe the use of the facsimile signature(s) of any officer, officers, employee or employees:
more specifically to authorize, request and direct the Bank to honor checks, drafts or other orders for the payment of
money drawn in this Corporation's name on its various accounts, when bearing or purporting to bear the facsimile
signature(s) of any designated officer, officers, employee or employees of the Corporation, and the Bani: shall be
entitled to honor and to charge this Corporation for such checks, drafts or other orders regardless of by whom or
by what means the actual or purporting facsimile signature(s) thereon may have been P,144ixed thereto, if such facsimile
signature(s) resembles the facsimile specimen duly certified to or filed with the Bank by the Secretary or other officer
of the Corporation;
(d) to issue written, telephonic, electronic or oral instructions with respect to the transfer of funds of this Corporation
on deposit with the Bank (or at any other depository) by wire, automated clearing house or other electronic means
of transfer, without any written order for the payment of money being issued with respect to such transfer and to enter
into such agreements with the Bank on behalf of this Corporation with respect to such transfers authorizing or
providing for automatic or repetitive transfers, including agreements protecting the Bank against the consequences
of relying on instructions from persons purporting to be authorized to act on behalf of this Corporation, as any of such
officers, agents, or employees may deem appropriate as evidenced by his /her execution thereof;
(e) to purchase or otherwise acquire for and on behalf of this Corporation, and to sell, transfer or otherwise dispose of,
and endorse for sale, transfer or other disposition, any and all bonds, notes, shares of stock and other securities of
any kind or nature and by whomsoever issued, or interim, participation or other certificates therefor, and to identify
and guarantee signatures and endorsement thereon, or on powers of attorney executed in connection therewith, and
to authorize or direct charges to the depository account or accounts of this Corporation with the Bank for the cost
of any securities so purchase from or through the Bank; and
(f) to enter into such agreements with the Bank with respect to any banking services (including without limitation Cash
Management Services) as such officers, agents or erployees in their sole discretion deem advisable or in the best
interest of the Corporation.
To revoke and rescind at any time any of the authorities granted as described herein.
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FURTHER RESOLVED that any officer, employee or agent of this corporation is hereby authorized to endorse for deposit
negotiable instruments and orders for the payment of money, which endorsements may be made in writing or by stamp and
with or without designation of the person so endorsing; and that in the absence of any such endorsement the Bank be and is
hereby authorized to make such endorsement itself for deposit in the name of the Corporation
FURTHER RESOLVED that the Secretary of this Corporation be and hereby is authorized and directed to certify to the Bank
the foregoing resolution and that the provisions thereof are in conformity with the Articles of Incorporation and Bylaws of the
Corporation and to provide the names and to provide specimen of signatures if requested of the person(s) authorized therein
and that the foregoing resolution and the authority thereby conferred shall remain in full force and effect until this Corporation
notifies the Bank to the contrary in writing and the Bank may conclusively presume that such resolutions and signatures are
in effect and that the persons identified therein from time to time as officers of the Corporation have been duly elected or
appointed to and continue to hold such offices.
FURTHER RESOLVED, that this Corporation assumes full responsibility and hold harmless the Bank for any and all payments
made or any other actions taken by the Bank in reliance upon the signatures of any person or persons holding the offices of
this Corporation designated above regardless of by whom or by what means the purported signatures may have been affixed
to any instrument if such signatures reasonably resemble the specimen signatures as provided to the Bank or for refusing
to honor any signatures not provided to the Bank, and that this Corporation agrees to indemnify the Bank against any
and all claims, demands, losses, costs, damages or expenses suffered or incurred by the Bank resulting from or arising
out of any such payment or other action, including reasonable attorneys' fees and legal expenses.
FURTHER RESOLVED, that any request for payment or other financial accommodation may be made by writing or by
telephone, telex, facsimile or other electronic transmission, or by any other form of communication deemed advisable by
any person or persons holding the offices of this Corporation designated above, or by such officer or officers as having the
authority to act on behalf of this Corporation.
Any provision which may. be declared unenforceable under any law shall not affect the validity of any other provision hereof
This Resolution shall be governed by and construed in accordance with the laws of the State of Illinois.
AFF. X
CORPORATE SEAj_
(IF ANY ")
* *NOTE: This certificate must also be signed by a second
officer of the Corporation or a member of its Board
of Directors if the Secretary is authorized to act alone
by the above resolution.
In witness Whereof I have hereunto set my hand and
affixed the corporate seal (if any) of said Corporation
thisl5t y of AF f/11 �-;, . 19 96
'®�Geet:etar�-
Village President
The undersigned, an officer of the above -named
Corporation, certifies that the foregoing is a
correct copy of a resolution passed as therein
set forth.
Village 1thejCertifying Officer'
er
AYES: 6 - Marienthal, Reid, Rubin, Braiman, Hendricks, Glover
NAYES: 0 - None
ABSENT: 0 - None
PASSED: April 15 ,1996.
APPROVED: April 15 .,1996.
HARRIS' •
BANK
NGT—ON Corporate Designation of Account Authority
Check one of the following boxes below if applicable, otherwise this is a new account;
Submitted to Replace Authorities on File ❑ Submitted to Add Additional Authorities
B the authority ranted to the undersigned b The Board ofLr Sett Fse -ofs g
Y tY9 9 Y the Village of Buffalo Grove
as
evidenced by the resolutions adopted by said Board; recorded; still in full force and effect and furnished to Harris Bank Barrington, N.A.,
( "Bank ") Barrington, the Bank as a designated depository of this Corporation for the following account(s):
Designation of Account(s)
(Note: Authorities must be the same for ALL account numbers listed.. If needed, additional accounts may be listed on
separate attachment.)
is hereby requested, authorized and directed to do any one or more of the following when so instructed by those individuals
named in this document:
(a) to open, maintain, or discontinue any account or accounts with the Bank as they may see fit;
(b) to withdraw any of the funds deposited in the Bank upon checks, notes, drafts, bills of exchange, acceptances,
undertakings or other orders for the payment of money when made, signed, drawn, accepted or endorsed on behalf
of the Corporation by such of the persons so authorized;
(c) by written instruction to the Bank, ie.: Agreement for Facsimile Signature on Checks and Other Orders for Payment,
to authorize and prescribe the use of the facsimile signature(s) of any officer, officers, employee or employees;
more specifically to authorize, request and direct the Bank to honor checks, drafts or other orders for the payment of
money drawn in this Corporation's name on its various accounts, when bearing or purporting to bear the facsimile
signature(s) of any designated officer, officers, employee or employees of the Corporation, and the Bank shall be
entitled to honor and to charge this Corporation for such checks, drafts or other orders regardless of by whom or
by what means the actual or purporting facsimile signature(s) thereon may have been affixed thereto, if such facsimile
signature(s) resembles the facsimile specimen duly certified to or filed with the Bank by the Secretary or other officer
of the Corporation;
(d) to issue written, telephonic, electronic or oral instructions with respect to the transfer of funds of this Corporation
on deposit with the Bank (or at any other depository) by wire, automated clearing house or other electronic means
of transfer, without any written order for the payment of money being issued with respect to such transfer and to enter
into such agreements with the Bank on behalf of this Corporation with respect to such transfers authorizing.or
providing for automatic or repetitive transfers, including agreements protecting the Bank against the consequences
of relying on instructions from persons purporting to be authorized to act on behalf of this Corporation, as any'of such
officers, agents, or employees may deem appropriate as evidenced by his /her execution thereof;
(e) to purchase or otherwise acquire for and on behalf of this Corporation, and to sell, transfer or otherwise dispose of,
and endorse for sale, transfer or other disposition, any and all bonds, notes, shares of stock and other securities of
any kind or nature and by whomsoever issued, or interim, participation or other certificates therefor, and to'identify
and guarantee signatures and endorsement thereon, or on powers of attorney executed in connection therewith, and
to authorize or direct charges to the depository account or accounts of this Corporation with the Bank for the cost
of any securities so purchase from or through the Bank; and
(f) to enter into such agreements with the Bank with respect to any banking services (including without limitation Cash
Management Services) as such officers, agents or employees in their sole discretion deem advisable or in the best
interest of the Corporation.
when bearing or purporting to bear the signature(s) or facsimile signature(s) of any of those individuals named in this
document.
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r44%
X
Designation of Accountlis)
(Type or Print Designated Authority By Letter, Names of Authorized Persons and Applicable Number of Signatures Required) .
Designated Authority Number of Signatures Letters
(Indicated by Above) Name(s) of Authorized Person(s) Signatures Required
B
A B.C,D,F
A,B,C,D,F
JLL11Cl. 11• J11 Q✓iuu
William H. Br'
2
2
2
Special Instructions:
Please refer to
Village's
Deposit
and
Investment
Policy for additional
instructions
and _authorized
Village
accounts.
Two
signatures
required for withdrawl,
one signature for wire transfer to authroized account.
The Bank shall be entitled to honor and to charge to this /these account(s) for all checks, drafts, or other orders
(including but not limited to wire transfer orders) regardless of by what means the signature(s) or facsimile
signatures(s) thereon may have been affixed thereto, if such signature(s) or facsimile signature(s) resemble the
specimen(s) duly certified as genuine to our files with the Bank.
This designation of authorities made pursuant to the aforementioned resolutions shall continue in force until express
written notice of its revocation or modification has been received by the Bank, but if such authorities contained in
them should be revoked or terminated by operation of law without notice, It is hereby agreed, for the purpose of
inducing the Bank to act thereunder, that the Bank shall be saved harmless from any loss suffered or liability incurred
by it acting after such revocation or termination without such notice.
* *If second Officer is required by Resolution
The undersigned, being an officer of the above -named
Corporation, certifies that he /she is duly authorized to
provide the foregoing designation of authorities for and
on behalf of said Corporation,
�PAO� � i _ i 1 � �
-
� r r
* *(Certify1 g Officeryillage Clerk
5/94
t,f 5 O 9
BRINrt a BAINGTON
Certificate of Incumbency
To Corporate Resolution for Deposit Accounts and Other Financial Services
Village Clerk
I hereby certify to the Bank that I am the duly elected, qualified and acting -Seem of
the Village of Buffalo Grove, Illinois
(Name of Corporation)
that following are all of the specimen signatures of the person(s) authorized by the Corporate Resolution For Deposit Accounts
and Other Financial Services filed with the Bank to act on behalf of the Corporation, that these specimen signatures are genuine,
that these person(s) have been duly elected or appointed to the offices indicated and hold the offices at present and that I am
the person authorized by this Corporation to so certify:
Name of Office
(Indicate name of office, e.g. president, vice president,
assistant vice president, etc.)
Village Clerk
Village Manager
Signature Specimen
44 (Manual Signature Only)
** SidnPy H_ Mathias
�r 1
** Janet M. Sirahian
**
**
* *Type or print names signed above
Signed thisl5thday of April ,19 96
n •
VILLAGE OF BUFFALO GROVE
POLICIES AND PRACTICES
RELATIVE TO DEPOSITS AND INVESTMENTS
The Village of Buffalo Grove, as a public agency, has an inherent fiduciary
responsibility to properly account for and manage public funds. Public funds are
to be considered current operating funds, special funds, interest and sinking
funds, and funds of any kind or character belonging to or in the custody of any
public agency (Chapter 30, paragraph 235/1 through 235/7, Public Funds Investment
Act, Illinois Complied Statutes). It will be the Village's policy to maintain
the highest level of invested cash balances not only as a good management
practice, but as a commitment of responsibility to the residents of the Village
who have entrusted these funds to us.
The overall direction of the Village's investment program may be found in the
following objectives, which have been prioritized and explained to clearly
identify the results expected.
Safety of Principal is considered of greatest priority to the Village.
Each investment that is to be made shall seek to insure that capital
losses are avoided, whether they be from securities defaults or erosion of
market values.
Liquidity is considered to be the next important objective. The Village's
investment portfolio shall remain sufficiently liquid to enable itself to
meet all operating requirements from time to time.
Maximum rate of return shall always be sought but shall be consistent with
both risk limitations identified herein and prudent investment principles.
Diversification is necessary in order to further guarantee asset safety.
Investments shall be diversified to the greatest extent possible in avoid
incurring unreasonable risks from the practice of concentrating
investments in specific security types and /or individual financial
institutions.
Public confidence in the investment program is imperative. The Village
shall avoid any transaction that might impair its public confidence.
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. Such a standard avoids
speculation, and emphasis is placed on the probable safety of capital
rather than the probable income to be derived. In addition, parties
related to the management process of the Village shall refrain from
personal business activities that could conflict with the proper execution
of the investment programs undertaken or which could impair their ability
to make impartial investment decisions.
The Village's policy regarding cash management is based upon the realization that
there is a time -value to money. Idle cash should be invested for a period
defined by normal cash flow needs. All receipts due the Village shall be
collected as promptly as possible. Monies that are received shall be deposited
no later than the next business day after receipt. Disbursements shall be made
according to established guidelines and approval schedules.
The types of deposits and investment instruments that will be authorized for use
by the Village of Buffalo Grove in managing its investment of public funds shall
be dictated by statute. The specific reference is Chapter 30, paragraph 235/2,
Illinois Complied Statutes. Specifically, the investments permitted are:
Bonds, notes, certificates of indebtedness, treasury bills or other
securities now and hereafter issued, which are guaranteed by the full
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faith and credit of the United States of America as to principal and
interest. Also, in bonds, notes, debentures or other similar obligations
of the United States of America or it's agencies.
Interest bearing savings accounts, interest bearing certificates of
deposit, interest bearing time deposits or any other investments
constituting direct obligations of any bank as defined by the Illinois
Banking Act. Investments may be made only in banks which are insured by
the Federal Deposit Insurance Corporation.
Short term obligations of corporations organized in the United States with
assets exceeding $500,000,000 if such obligations are rated at the time of
purchase within the three highest classifications established by at least
two standard rating services and which mature not later than 180 days from
the date of purchase, and such purchases do not exceed 10% of the
corporation's outstanding obligations. No more than one -third of the
Village's funds may be invested in short term obligations of corporations.
Short term discount obligations of the Federal National Mortgage
Association.
Shares or other forms of securities issuable by savings and loan
associations incorporated under the laws of the State of Illinois or any
other state or under the laws of the United States. Investments may be
made only in those savings and loan associations which are insured by the
Federal Savings and Loan Insurance Corporation.
Money- market mutual funds registered under the amended Investment Company
Act of 1940 provided that the portfolio is limited to bonds, notes,
certificates of indebtedness, treasury bills or other securities which are
guaranteed by the full faith and credit of the United States of America or
agreements to repurchase these same types of obligations.
In addition to the above investment options, the Village may also invest any
public funds in the Illinois State Treasurers Investment Pool created under
Section 17 of the State Treasurer Act or the Illinois Metropolitan Investment
Trust, created under Section XXX of XXX.
The Village shall attempt whenever possible to diversify it's investment
portfolio in order to reduce the risk of loss resulting from the over -
concentration of assets in a specific maturity, a specific issuer, or a specific
class of securities.
All earnings accruing or paid on any investments or deposits made shall be
credited to the specific investment made, and such earnings shall be in turn
credited to and paid to the particular Village fund for which the investment has
been made. As to earnings realization, any premium or discount will be amortized
over the life of an investment subject to such amortization. Also, any gains or
losses in the sale of investments will be recognized at the time of disposition
of the security.
It should be noted that while investments in chartered credit unions are
permitted, it will be the Village's policy not to invest public funds in such
institutions. Also, the Village will not invest in repurchase or reverse -
repurchase agreements.
All investments shall be made in the name of the Village of Buffalo Grove. In
addition, if such securities will be made from monies taken from specific Village
funds or accounts, the name of such fund or account shall be added to that of the
Village. All investments purchased shall be held for the benefit of the Village.
Money taken from a particular fund or account shall be credited to and deemed to
be a part of such fund or account, and shall be held for the benefit thereof.
o �
All investments shall be deposited and held in safekeeping in the name of the
Village with proper evidence of safekeeping forwarded to the Village for use in
its internal accounting system.
The Village will secure deposit collateral from depository institutions when
deposits or investments are in excess of FDIC limits. Direct investments
guaranteed by the United States or an agency of the United States do not require
collateral. The amount of deposits not collateralized or insured by an agency
of the federal government shall not exceed 75% of the capital stock and surplus
of a banking institution. These values shall be reviewed on a quarterly basis
comparing actual deposits not insured or collateralized against the capital stock
and surplus measure. Values shall be taken from published regulatory agency
reports required by either the Comptroller of the Currency or the Commissioner
of Banks and Trust Companies.
If deposits are maintained with a savings and loan association, the amount of
deposits not collateralized or insured shall not exceed 75% of the net worth of
the institution as defined and reported to the regulatory agencies.
As noted above, the Village will require that all deposits in excess of the
appropriate regulatory agency limits, i.e. $100,000 per account, be
collateralized. The form of collateral shall consist of readily marketable
municipal or United States governmental primary or agency securities maintained
in a trust safekeeping relationship for the benefit of the Village of Buffalo
Grove, all under a collateral agreement with a financial institution willing to
pledge said collateral. While not retaining ownership of pledged securities, the
Village will reserve the right to release such securities and to review
replacement securities. The targeted level of collateral maintained will be equal
to 100.00% of the deposit balances of the Village when combined with the deposit
insurance afforded by the governmental regulatory agencies. The collateral
balances will be reviewed on a quarterly basis for compliance with these
policies. Additional insurable balances are provided relative to total actuarial
beneficial interest for the police and fire pension programs based on membership
parameters.
The collateral requirements for deposits within the Illinois State Treasurers
Investment Pool are the same as required for the deposit of state funds by the
State Treasurer. See Illinois Complied Statutes, Chapter 15, paragraphs 505/17
and 520/1- 520/23.
The transfer of ready cash balances for operating and investment purposes will
be directed through policies and procedures established from time to time by the
Department of Finance and General Services. An operating procedure is currently
in effect with the First of America Bank - Buffalo Grove N.A., First Midwest Bank
of Buffalo Grove, N.A., and the First American Bank of Lake County that govern
either wire transfers or requests for cashier's checks from any Village savings
or checking account. The policy names the appropriate individuals within the
Department of Finance and General Services that have such withdrawal authority.
Also, the named individuals have additional authority to roll -over Certificates
of Deposit, to cash same in and deposit in the appropriate Village fund account
and to use the services of the Illinois State Treasure's Pool or the Illinois
Metropolitan Investment Fund for investment purposes.
As formally articulated in the letters of direction to the local financial
institutions, only the following can be performed by named individuals of the
procedure:
Transfer funds to the Village's Disbursement Account at the First Midwest
Bank, N.A.
Transfer funds to or from the Village's account with the Illinois State
Treasurer's Investment Pool at the First of America- Springfield, N.A.
Request wire transfers or cashier's checks to transfer funds between
Village -only accounts maintained either at the First of America- Buffalo
Grove, First Midwest Bank of Buffalo Grove, N.A., or First American Bank
of Lake County. Proper identification of the receiving account must be
provided in the instructions. Periodically, both institutions will be
provided with lists of currently opened and authorized Village demand and
savings accounts.
Request debit /credit transfers of Village funds between Village accounts
within the same institution due to deposit or withdrawal errors.
Roll -over and /or cash in Certificates of Deposit by either authorized
staff or at the direction of the of the Director of Finance and General
Services.
Transfer funds to the Northwest Water Commission operating account
established at the Continental Illinois National Bank or First of
America - Springfield, N.A. in conformance with the Commission's bond
ordinance.
Transfer funds to or from the Village's accounts with the Illinois
Metropolitan Investment Fund at XXXXX.
Any transaction outside of the above will be requested only by the Village's
Director of Finance and General Services. In all cases, any transaction will be
followed -up with written correspondence within 24 hours of the transaction. The
institutions have been instructed to notify the Village in case there is no
notification within the deadline parameters.
Management responsibility for the Village's deposit and investment program shall
rest with the Director of Finance and General Services. The Director shall
direct the deposit and investment program in a manner that is consistent with
this Policy. Internal procedures shall be reviewed and modified from time to
time in order to insure that this Policy maintains its integrity and workability.
A system of controls shall be established to monitor and regulate the activities
of all employees dealing with any aspect of this Policy.
Village Pension Funds The investment programs of the Village's Police and Fire
Pension Funds will be directed by the statutory language of Chapter 40 of the
Illinois Compiled Statutes. The specific Sections are 5/3 -135 for Police Pension
investments and 5/4 -128 for Fire Pension. The language for these activities is
separate from other general investment activities in that the appointed and
elected pension boards have statutory powers and duties under the Pension Code.
While such investment programs will be directed by the respective Board's, the
Village will maintain the internal accounting for same.
Accounting All investment transactions shall be recorded in accordance with
generally accepted accounting principles as promulgated. Accounting principles
will include:
Investments will be carried at cost or amortized cost which approximates
market value.
Any premium or discount will be amortized over the life of the investment
using proper accounting methods of accretion.
Gains or losses of investments in all funds will be recognized at the time
of disposition of the security.
Gains or losses in equity investments within pension funds will be carried
at market value with gains above market realized as unrealized unless
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assets are disposed of. Losses of market value will be written down when
realized.
Delegation of Authority The management responsibility for the Village's
investment programs is the responsibility of the Village staff or in the case of
pension activities, the pension fund boards. The Village or pension boards may
hire one or more Investment Managers as approved. The terms and conditions,
including acknowledgment by the Investment Advisor(s) of fiduciary
responsibility, shall be in writing. The Managers selected will acknowledge that
the Village's funds are to be managed on a total return basis in which both
income and capital gains are reported when earned.
The Village and pension boards may hire or appoint, as necessary, a financial
institution(s) as custodian of investment assets. All investment securities held
by a custodian shall be clearly held and accounted for to indicate the ownership
by the Village or pension fund. To be appointed or hired as custodian, the
financial institution must meet statutory criteria approving same to be a
depository of public funds.
Internal Reporting The Department of Finance and General Services will provide,
on a regular basis, reporting to the Corporate Authorities and the Pension Boards
on any and all investment activities. The reporting will include, but not be
limited to, average cash and investment balances, portfolio yields and interest,
and treasury report noting month -end cash and investment positions. Reporting
will be by fund and /or investment category. The reporting to the Pension Boards
will include quarterly cash and investment positions, along with quarterly cash
and investment transactions. The latter report is a statutory report and will
be prepared for the Village Treasurer.
Internal Controls Where deemed necessary, the Village shall establish a system
of internal controls, which shall be documented in writing. These internal
controls and this Policy shall be reviewed annually as part of the Village's
independent audit. The controls shall be designed to prevent losses of Village
funds arising from fraud, employee error, misrepresentation by third parties,
unanticipated changes in financial markets, or imprudent actions by Village
employees. The Village will implement control standards that can be administered
in a cost effective manner based in inherent limitations that may exist
organizationally.
Standards of Prudence The standard of prudence to be used by the Village and the
staff responsible for the investment of public funds shall be the "prudent
person" standard, subject to the foregoing limitations, which states:
Investments shall be made with judgment and care, under
circumstances then prevailing, which persons knowledgeable of
investment practices, and 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 of professional responsibility
and shall be applied in the context of managing the Village's overall portfolio.
This policy recognizes that there are circumstances beyond the control of even
the most prudent investor which impact the return obtained. However, officials
and employees of the Village acting in accordance with this Deposit and
Investment Policy and written procedures as may be established and exercising due
diligence shall be relieved of personal responsibility for an individual
security's credit risk or market price changes, provided that deviations from
expectations are reported in a timely fashion, and appropriate action is taken
to control adverse developments.
Dated April 8, 1996