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a. Payment shall be made by or on behalf of the Village of Gowanda for obligations of New York State, obligations the principal and interest which are guaranteed by the United States, United States obligations, ‘Certificate of Deposit, and other purchased securities upon the delivery thereof to the Custodial Bank, or in the case of a book-entered transaction, when the purchased securities are credited to the Custodial Bank’s Federal Reserve System account. All transactions shall be confirmed in writing, WRITTEN CONTRACTS ; Written contracts are required for Certificate of Deposit, and custodial undertakings. With respect to the purchase of obligations of the United States, New York State, or other government entities, etc. in which adequately protected by conditioning payment on the physical ‘delivery of purchased securities to the Village of Gowanda or Custodian, or in the case of book- entry transactions, on the crediting of purchased securities to the Custodians Federal Reserve System account. All purchases will be confirmed in writing to the Village of Gowanda. It is therefore, the policy of the Village of Gowanda, to require written contracts as follows: a. Written Contracts shall be required for the purchase of all certificates of deposit. b. A written contract shall be required with Custodial Bank. DESIGNATION OF CUSTODIAL BANK a. Custodial Bank. The trust Bank Company chartered by the State of New York is designated to act as Custodial Bank of the Village of Gowanda’s investments. FINANCIAL STRENGHT OF INSTITUTIONS All trading partners must be credit-worthy. Their financial statements must be reviewed at least annually by the Chief Fiscal Officer to determine satisfactory strength or the Chief Fiscal Officer may use credit rate agencies to determine credit-worthiness of trading partners. Concentration of investments in financial institutions should be avoided. The general rule is not to place more than $500,000 in overnight investments with any one institution. Investments in time deposits and certificated of deposit are to be made with banks or trust companies. Their annual reports must be reviewed by the Chief Fiscal Officer to determine satisfactory financial strength. When purchasing eligible securities the seller shall be required to deliver the securities to our Custodial Bank. OPERATIONS, AUDIT AND REPORTING ‘The Chief Fiscal Officer or the Deputy Fiscal Officer shall authorize the purchase and sale of all securities and certificates of deposit on behalf of the Village of Gowanda. Oral directions concerning the purchase or sale of securities shall be confirmed in writing. The Village of Gowanda shall pay for purchased securities upon the delivery or book entry thereof. The Village of Gowanda will encourage the purchase and sale of securities and certificates of deposit through a competitive or negotiated process involving telephone solicitation of at least two (2) bids for each transaction.