I. Scope This investment policy applies to all monies and other financial resources available for investment on behalf of Chenango Valley Central School District.

II. Objectives The primary objectives of Chenango Valley Central School District’s investment activities are, in priority order:

III. Delegation of Authority The Board of Education’s responsibility for administration of the investment program is delegated to the Treasurer, School Business ExecutiveandDeputy Treasurer, who shall establish written procedures for the operation of the investment program consistent with these investment guidelines. Such procedures shall include an adequate internal control structure to provide a satisfactory level of accountability based on a database or records incorporating description and amounts of investments, transaction dates, and other relevant information and regulate the activities of subordinate employees.

IV. Prudence All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid any transaction that might impair public confidence in the Chenango Valley Central School to govern effectively. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the safety of the principal as well as the probable outcome to be derived.

All participants involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

V. Diversification It is the policy of the Chenango Valley Central School District to diversify its deposits and investments by financial institution, by investment instrument, and by maturity scheduling.

VI. Internal Controls It is the policy of the Chenango Valley Central School District for all monies collected by any officer or employee of the school district to transfer those funds to the District Business Office as soon as possible for expedient transport to CBO for deposit. District Business Office and CBO are both responsible for establishing and maintaining an internal control structure 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 and recorded properly, and are managed in compliance with applicable laws and regulations.

VII. Designation of Depositories The banks and trust companies authorized for the deposit of monies up to the maximum amounts are to be designated at the Reorganization Meeting annually. General Municipal Law Section 10 defines “bank” as a bank as defined by the New York Banking Law or a national banking association located and authorized to do business in New York. General Municipal Law Section 10 defines “trust company” as a trust company as defined by the New York Banking Law and located and authorized to do business in New York.

VIII. Collateral of Deposits In accordance with the provisions of General Municipal Law, §10, all deposits of Chenango Valley Central School District including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act shall be secured:

IX. Safekeeping and Collateralization Eligible securities used for collateralizing deposits shall be held by (the depository and/or a third party) bank or trust company subject to security and custodial agreements. The security agreement shall provide that eligible securities are being pledged to secure Chenango Valley Central School District deposits together with agreed upon interest, if any, and any costs or expenses arising out of the collection of such deposits upon default. It shall also provide the conditions under which the securities may be sold, presented for payment, substituted or released and the events, including the events of default, which will enable the Chenango Valley Central School District to exercise its rights against the pledged securities. In the event that such securities are not registered or inscribed in the name of the Chenango Valley Central School District, such securities shall be delivered in a form suitable for transfer or with an assignment in blank to the Chenango Valley Central School District or its custodial bank. The custodial agreement shall provide that securities held by the bank or trust company, as agent of and custodian for, the Chenango Valley Central School District, will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or become part of the backing for any other deposit or other liabilities. The agreement shall provide for the manner in which the custodian shall confirm the receipt, substitution or release of the securities. The agreement shall provide for the frequency of revaluation of eligible securities for the substitution of securities when a change in the rating of a security may cause ineligibility. Such agreement shall include all provisions necessary to provide the Chenango Valley Central School District a perfected interest in the securities.

X. Permitted Investments As authorized by General Municipal Law, §11, the Chenango Valley Central School District authorizes the investment of monies not required for immediate expenditure for terms not to exceed its projected cash flow needs in the following types of investments:

XI. Authorized Financial Institutions and Dealers The Chenango Valley Central School District shall maintain a list of financial institutions and dealers approved for investment purposes and establish appropriate limits to the amount of investments, which can be made with each financial institution or dealer. All financial institutions with which the Chenango Valley Central School District conducts business must be credit worthy. Banks shall provide their most recent Consolidated Report of Condition (Call Report) at the request of the Chenango Valley Central School District. Security deals not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the New York Federal Reserve Bank, as primary dealers. The School District Business Executive and Treasurer, jointly, are responsible for evaluating the financial position and maintaining a listing of proposed depositaries, trading partners and custodians.

XII. Purchase of Investments The Treasurer or Deputy Treasurer are authorized to contract for the purchase of investments: