Investment Policies & Procedures Flashcards
If County Board decides not to create its own investment policy, then it (thru the Clerk) must invest in what 4 categories?
FINANCE
(a) LG Surplus Funds Trust Fund.
(b) SEC registered money market.
(c) Interest-bearing savings account.
(d) Direct obligations of the U.S. Treasury.
Can LG governing Board invest in anything other than that specified in 218.415?
No, not unless it has created its own investment policy.
Must Clerk follow the Board’s direction on investment?
NO unless policy.
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Yes, if the Board has created a policy. If not, Clerk may invest in the 4 categories as he sees fit.
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See, Seminole County case, re: Clerk investing.
Investment of LG surplus funds are:
(a) limited by statute to U.S. Treasury obligations
(b) limited to certain investments unless the LG has a formal written investment policy
(c) limited by statute, but only with respect to special districts and non-charter counties
(d) none of the above
B
See, Seminole County case, re: Clerk investing.
Only local resolutions and ordinances govern the investment of funds by a LG.
FALSE
There are no limitations on the investment of LG funds in derivative financial products, other than local ordinances or resolutions.
FALSE
What are the limits placed on investment of LG funds in derivative financial products?
FINANCE
- Must be specifically authorized.
- CFO must have developed sufficient understanding & have expertise to manage.
Can LGs use reverse repurchase agreements or other forms of leveraged investments?
Prohibited generally.
Or may be limited to transactions where
1) Proceeds are intended to provide liquidity
2) LG has sufficient resources + expertise.
Who has discretion to determine investments?
Clerk of Circuit Court UNLESS LG board by resolution adopted an investment policy. Once policy is in place, Clerk must comply.
