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Investment Policy

I.  Policy Statement and Scope
This document will govern the investment activities of the Community Library (the Library). It is the policy of the Library to invest public funds in a manner which will provide the highest return with the maximum security while meeting cash flow demands. All investments will conform to all applicable laws and regulations governing the investment of public funds, including Senate Bill 81 and Section 135 of the Ohio Revised Code

II. Investment Objectives
The primary objectives, in priority order, of the Library's financial investments are:

Safety of Principal - Safety of principal is the foremost objective of the investment program. All investments shall be undertaken in a manner that seeks first to preserve capital and second to fulfill other investment objectives

Liquidity - The Library's investment portfolio will remain sufficiently liquid to enable the Library to meet all operating requirements which might be reasonably anticipated

Return on Investments (Yield) - The Library's investments should generate the highest available return without sacrificing the first two objectives outlined above.

Minimization of Risk - All attempts shall be made to minimize risks inherent in investment through diversification so as to eliminate the risk of loss resulting from an over-concentration of funds in a specific maturity, issuer, industry, geographical area, or class of securities.

Minimization of Cost - All attempts shall be made to minimize the costs of financial transactions related to implementing investment strategies.

III. Delegation of Authority
Management responsibility for the Library's investment program is hereby delegated to the Clerk-Treasurer, who is the Library's chief fiscal officer under the Ohio Revised Code and the Chairman of the Budget Committee of Community Library Board of Trustees. They shall act only in accordance with the wishes of the Board as described in this Investment Policy.

IV. Authorized and Suitable Investments
The following investments are deemed to be suitable for inclusion in the Library's investment program. The Clerk-Treasurer is authorized to invest Library funds in only those investments specifically delineated below.

U.S. Treasury Bills and Notes for which the full faith and credit of the U.S. Government is pledged for the repayment of principal and interest. Bills are short term (one year or less) obligations issued and sold at a discount. Notes have fixed coupon rates with original maturities of between one and five years.

Ohio Subdivision's Fund (STAR Ohio), managed by the State Treasurer of Ohio.

Demand deposit accounts (such as checking accounts) established with local financial institutions.

Certificates of Deposit (CDs) issued by local financial institutions.

With Board approval, the Clerk-Treasurer may enter into repurchase agreements (repos) with any eligible public depository mentioned in ORC 135.03 or with any member of the NASD. The market value of the securities subject held as collateral for an overnight repo (including sweep accounts) or term repo must exceed the principal by at least 2%, and the securities must be marked to market daily. Term repurchase agreements may not exceed 30 days. Any repurchase agreement with an eligible securities dealer must be transacted on a delivery versus payment basis. All securities purchased pursuant to a repurchase agreement must be delivered into the custody of the Clerk Treasurer. Such institution or dealer must agree in writing to unconditionally repurchase any of the securities used for any repo transaction.

Reverse repurchase agreements are strictly prohibited.

V. Maturity of Investments
No investment shall have a maturity date of more than five years from its date of purchase by the Library. To the extent possible and prudent, the Library will attempt to match its investment maturities with anticipated cash flow requirements

VI. Deposit Requirements
All deposits shall be collateralized pursuant to the Ohio Revised Code (Section 135). The Library's Board of Trustees shall designate its public depositories in accordance with Section 135 of the Ohio Revised Code. Any eligible financial institution that has offices within the State of Ohio may become a public depository of the funds of the Library.

The Library shall deal only with brokers or dealers who are registered as such with the Securities and Exchange Commission and, which are licensed as a dealer with the Ohio Division of Securities and as defined in Ohio Revised Code 135.03. Such brokers or dealers should also be members of the National Association of Securities Dealers, Inc. Securities brokers and dealers shall be utilized only after an analysis performed by Clerk Treasurer has revealed that the broker is adequately financed to conduct business with the Library and they have been approved by the Board of Trustees.

Copy of this Investment Policy and any revisions or updated versions will be given to eligible financial institutions and brokers and dealers desiring to do business with the Library. It shall be the responsibility of the designated officer of those institutions and brokers and dealers to review the Investment Policy and agree to comply with all applicable State of Ohio and Federal Laws. Furthermore, the aforementioned officer shall agree to disclose any potential conflicts or risks to the Library funds that could arise out of financial transactions between the financial institutions, brokers, dealers and the Library

VII. Reporting
The Clerk-Treasurer shall provide to the Library's Board of Trustees monthly investment reports which clearly provide the following information regarding the investment portfolio: types of investment, depository institutions, principal balances, rates of return and maturities.

VIII. Investment Policy Adoption
The Library's Investment Policy shall be adopted by resolution of the Library's Board of Trustees. The Policy shall be reviewed no less than annually by the Budget Committee of the Board of Trustees and any modifications made thereto must be approved by the Library's Board of Trustees.

The approved Investment Policy must be filed with the Auditor of the State of Ohio. The Clerk-Treasurer shall maintain a copy of the filed Policy. That copy must be signed by the following

All entities conducting investment business with the investing authority;

All brokers, dealers and financial institutions initiating transactions with the investment authority by giving advice or making investment policy thereby acknowledging their agreement to abide by the policy's content;

All brokers, dealers and financial institutions executing transactions initiated by the investment authority, having read the policy's contents thereby acknowledging their comprehension and receipt.

 

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Community Library | 44 Burrer Dr | Sunbury, Ohio 43074
Phone: 740.965.3901 | Fax: 740.965.1258
Email: community-library@oplin.org

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