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Town of Aurora | Town Board Meeting | January 12, 2026 The governing board shall establish appropriate limits for the amount of investments that can be made with each financial institution or dealer, and shall evaluate this listing at least annually. VI. INTERNAL CONTROLS It is the policy of the Town of Aurora for all moneys collected by any officer or employee of the government to transfer those funds to the Town of Aurora within 7 days of deposit, or within the time period specified in law, whichever is shorter. The Town Supervisor is responsible for establishing and maintaining internal control procedures to provide reasonable, but not absolute, assurance that deposits and investments are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management’s authorization, properly recorded, and managed in compliance with applicable laws and regulations. VII. DESIGNATION OF DEPOSITARIES The banks and trust companies that are authorized for the deposit of moneys are as follows: • JP Morgan Chase Bank • Bank of America • Bank of Holland • Key Bank • Citizens Bank • Manufacturers & Traders Trust Company • Five Star Bank • TD Bank • New York Cooperative Liquid Assets Securities System (NYCLASS) • Empire Public Investment Cooperative Fund of New York (EPIC FUND NY) VIII. SECURING DEPOSITS AND INVESTMENTS All deposits and investments at a bank or trust company, including all demand deposits, certificates of deposit and special time deposits (hereinafter, collectively, “deposits”) made by officers of the Town of Aurora that are in excess of the amount insured under the provisions of the Federal Deposit Insurance Act, including pursuant to a Deposit Placement Program in accordance with law, shall be secured by one or more of the following: 1. A pledge of “eligible securities” with an aggregate “market value” (as provided by the GML Section 10) that is at least equal to the aggregate amount of deposits by the officers. See Schedule A of this policy for a listing of “eligible securities.” 2. A pledge of a pro rata portion of a pool of eligible securities, having in the aggregate, a market value at least equal to the aggregate amount of deposits from all such officers within the State at the bank or trust company. 3. An “eligible surety bond” payable to the government for an amount at least equal to 100 percent of the aggregate amount of deposits and the agreed-upon interest, if any, executed by an insurance company authorized to do business in New York State, whose claims-paying ability is rated in the highest rating category by at least two nationally recognized statistical rating organizations. The governing board shall approve the terms and conditions of the surety bond. 4. An “eligible letter of credit,” payable to the Town of Aurora as security for the payment of 140 percent of the aggregate amount of deposits and the agreed-upon interest, if any. An “eligible letter of credit” shall be an irrevocable letter of credit issued in favor of the Town of Aurora, for a term not to exceed 90 days, by a qualified bank (other than the bank where the secured money is deposited). A qualified bank is either one whose commercial paper and other unsecured short-term debt obligations (or, in the case of a bank which is the principal subsidiary of a holding company, whose holding company’s commercial paper and other unsecured short-term debt obligations) are rated in one of the three highest rating categories by at least one nationally recognized statistical rating organization, or one that is in compliance with applicable federal minimum risk-based capital requirements. 5. An “irrevocable letter of credit” issued in favor of the Town of Aurora by a federal home loan bank whose commercial paper and other unsecured short-term debt obligations are rated in the highest rating category by at least one nationally recognized statistical rating organization, as security for the payment of 100 percent of the aggregate amount of deposits and the agreed-upon interest, if any. IX. COLLATERALIZATION AND SAFEKEEPING Eligible securities used for collateralizing deposits made by officers of the Town of Aurora shall be held by (the depositary or a third party) bank or trust company subject to security and custodial agreements. The security agreement shall provide that eligible securities (or the pro rata portion of a pool of eligible securities) are being pledged to secure such deposits together with agreed-upon interest, if any, and any costs or expenses arising out of the collection of such deposits upon a default. It shall also provide the conditions under which the securities (or pro rata portion of a pool of eligible securities) held may be sold, presented for payment, substituted or released and the events of default which will enable the local government to exercise its rights against the pledged securities. 7