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624 <br /> <br /> demands of the County and conforming to all state and local <br /> statutes governing the investment of public funds. <br />2. This investment policy applies to all financial assets in the <br /> County's investment portfolio except debt proceeds which will be <br /> accounted for separately and invested separately from other funds. <br /> These funds are accounted for in the County's Comprehensive Annual <br /> Financial Report. <br />3. The standard of prudence to be used by staff will be the "prudent <br /> person" rule. The "prudent person" concept discourages <br /> speculative transactions. It attaches primary significance to the <br /> preservation of capital and secondary importance to the generation <br /> of income and capital gains. Authorized staff, if acting in <br /> accordance with written procedures and state statutes and <br /> exercising due diligence, shall be relieved of personal <br /> responsibility for an individual security's credit risk or market <br /> price changes, provided that these deviations are reported <br /> immediately and action is taken to control adverse developments. <br />4. The primary objectives, in priority order, of the County's <br /> investment activities will be: safety, liquidity, yield. <br /> a. Safety of principal is the foremost objective of the <br /> investment program. Investments of the County will be <br /> undertaken in a manner that seeks to ensure the preser~ation <br /> of capital in the overall portfolio. To attain this <br /> objective, diversification is required in order that <br /> potential losses on individual sscurittes do not exceed the <br /> income generated from the remainder of the portfolio. <br /> b. The County's investment portfolio will remain sufficiently <br /> liquid to enable the County to meet all operating <br /> requirements which might be reasonably anticipated through <br /> the use of structured maturities and marketable securities. <br /> c. The County's investment portfolio will be designed with the <br /> objective of attaining a market rate of return while <br /> minimizing risk and retaining liquidity. <br />5. North Carolina G.S. 159-25(a)6 delegates management responsibility <br /> for the investment program to the Finance Director. The Finance <br /> Director will establish and maintain written procedures for the <br /> operation of the investment program consistent with this <br /> investment policy. Such procedures will include explicit <br /> delegation of authority to persons responsible for investment <br /> transactions. No person may engage in an investment transaction <br /> except as provided under the terms of this policy and the <br /> procedures established by the Finance Director. The Finance <br /> Director will be responsible for all transactions undertaken and <br /> will establish a system of controls to regulate the activities of <br /> subordinates. <br />6. Officers and employees involved in the investment process will <br /> refrain from personal business activity that could conflict with <br /> proper execution of the investment program, or which could impair <br /> their ability to make impartial investment decisions. Employees <br /> and investment officials will disclose to the County Manager any <br /> material financial interests in financial institutions that <br /> conduct business within this jurisdiction, and they will further <br /> disclose any large personal financial/investment positions that <br /> could be related to the performance of the County's portfolio. <br /> Employees and officers will subordinate their personal investment <br /> transactions to those of the County, particularly with regard to <br /> the time of purchase and sales. <br />7. The Finance Director will maintain a list of financial <br /> institutions who are authorized to provide investment services. <br /> Authorized financial institutions will be selected by credit <br /> worthiness and must maintain an office in the State of North <br /> Carolina. These may include "primary" dealers or regional dealers <br /> that qualify under Securities & Exchange Commission Rule 15C3-1 <br /> (uniform net capital rule). No public deposit will be made except <br /> in a qualified public depository as established by state laws. <br /> a. All financial institutions and broker/dealers who desire to <br /> become qualified bidders for investment transactions must <br /> supply the Finance Director with the following: audited <br /> financial statements, proof of National Associations of <br /> Security Dealers Certifications, proof of state <br /> registrations, and certification of having read the County's <br /> investment policy. <br /> b. A review of the financial condition and registrations of <br /> qualified bidders will be conducted by staff. Any financial <br /> <br /> <br />