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VILLAGE OF GOWANDA INVESTMENT POLICY AND GUIDELINE The objective of the Investment Policy of the Village of Gowanda are to minimize risk; to insure that investments mature when the cash is required to finance operations; and to insure a competitive rate of retum. In accordance with this policy, the Chief Fiscal Officer is hereby authorized to invest all funds including proceeds of obligations and reserve funds in: Certificates of Deposit issued by a bank or trust company authorized to do business in New York State; , Time Deposit Accounts in a bank or trust company authorized to do business in New York State; Obligations of New York State; Obligations of the United States Government; All funds except Reserve Funds may be invested in: Obligations of agencies of the Federal Government if principal and interest are guaranteed by the United States. With the approval of the State Compiroller, in Reserve Anticipation Notes or Tax Anticipation notes of other local governments. Only Reserve funds may be invested in; Obligations of the Village of Gowanda No other Village of Gowanda officials have the authority to receive money in their official capacity. ; All investments made pursuant to this investment policy shall comply with the following conditions; 1. COLLATERAL a. Certificates of deposit shall be fully secured by insurance of the Federal Deposit Insurance Corporation or by obligations of New York State or obligations of the United States or obligations of Federal Agencies the principal and interest of which are guaranteed by the United States, or obligations of New York State local governments, or a combination of same. Collateral shall be delivered to the Village of Gowanda or a Custodial Bank with which The Village of Gowanda has entered into a Custodial Agreement. The market value of collateral shall at all times exceed the principal amount of the certificate of deposit by 5%. Collateral shall be monitored no less frequently than weekly, and market value shall mean the bid or closing price as quoted in the Wall Street Journal or as quoted by another recognized pricing service. b. Collateral shall not required with respect to the direct purchase of obligations of New York State, obligations of the United States, and obligations of Federal agencies the principal and interest of which are guaranteed by the United States Government 2. DELIVERY OF SECURITITES