HomeMy WebLinkAboutHome Improvement Program ELIZABETH A. NEVILLE
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
MARRIAGE OFFICER
RECORDS MANAGEMENT OFFICER
FREEDOM OF INFORMATION OFFICER
Town Hall, 53095 Main Road
P.O. Box 1179
Southold, New York 11971
Fsx (631) 765-6145
Telephone (631) 765-1800
OFFICE OF THE TOWN CLERK
TOWN OF SOUTHOLD
THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION WAS
ADOPTED AT A REGULAR MEETING OF THE SOUTHOLD TOWN BOARD
HELD ON ON MAY 23, 2000:
RESOLVED that the Town Board of the Town of Southold hereby establishes
European American Bank, a state charted banking corporation, having an
office at EAB Plaza, Uniondale, New York 11555, as a depository for U.S.
Department of Housing and Urban Development (HUD) Block Grant funds
for the Town of Southold~s Home Improvement Program and authorizes
Supervisor Jean W. Cochran to sign an Agreement between the County of
Suffolk, European American Bank and the Town of Southold for the Home
Improvement Program account, subject to the approval of the Town Attorney.
Southold Town Clerk May 23, 2000
COUNTY OFSUFFOLK
ROBERT J. (~AFFNEY
SUFFOLK COUNTY EXECUTIVE
OFFICE OF COMMUNITY DEVELOPMENT
June 18, 2002
James McMahon, Director
Town of Southold
Community Development Office
Town Hall - P.O. Box 1179
Southold, NY 11971
Dear Jim:
Enclosed please find a fully executed Consortium Home Improvement Program
Agreement between your municipality, Citibank N.A., and Suffolk County. The agreement
allows your municipality to continue to withdraw funds from your municipality's home
improvement account to pay home improvement costs for deferred loans. The agreement also
provides for creditworthy and guaranteed loans at reduced interest rates.
Should you have any questions, feel free to call me.
Sincerely,
Barbara Mack
Assistant Director
Community Development
BM:rf
Enclosure
LOCATION MAILING ADDRESS
H. LEE DENNISON BLDG., 11 TH FLOOR P.O. BOX 6100 (631 ) 853 - 5705
! O0 VETERANS MEMORIAL HIGHWAY · HAUPPAUGE, NY 11788- 0099 · TELECOPIER (631 ) 853- 5688
CONSORTIUM HOME IMPROVEMENT PROGRAM
AGREEMENT
THIS AGREEMENT (the "AGREEMENT") is between the COUNTY OF SUFFOLK
("COUNTY"), a municipal corporation of the State of New York, having its principal office at
the County Center, Riverhead, New York 11901, acting through its duly constituted OFFICE OF
COMMUNITY DEVELOPMENT, located at 100 Veterans Memorial Highway, P.O. Box 6100,
Hauppauge, N.Y. 11788; and
CITIBANK, N.A. ("BANK"), a state charted banking corporation, having an office at
1 Court Square, 37th floor, Zone 3, Long Island City, NY 11120, and
The TOWN OF SOUTHOLD ("MUNICIPALITY" and/or "Participating Municipality").
The parties hereto desire to make available U.S. Department of Housing and Urban Development
(HUD) Block Grant funds for a loan pool to provide home improvement loans to income eligible
families, such loans shall be at beloTM current market interest rates.
TERMS OF AGREEMENT: Shall be December 1, 2000 to November 30, 2002.
TERMS AND CONDITIONS: Shall be as set forth in Exhibits A through D attached.
1N WITNESS WHEREOF, the parties hereto have executed this AGREEMENT as of the latest
date written below.
CITIBANK, N.A.
/"sandra A. R;(l{y
National Director of
Community Lending
COUNTY OF SUFFOLK
Chief Deputy County Executive
TOWN OF SOUTHOLD
Joshua Horton
Supervisor
APPROVED:
OFFICE OF COMMUNITY
DEV mNT [.
Barbara Mack
Assistant Director
APPROVED AS TO FORM
NOT REVIEWED AS TO EXECUTION
Robert J. Cimino
Coufil~ Attorney
Assistant County Attorney
DATE: ////~/0
Page 1 of 13
EXHIBIT A
General Terms and Conditions
WHEREAS, tbe Secretary of tbe U.S. Department o£ Honsing and Urban Developmeut is
authorized, under Title I of the Housing and Community Development Act o f 1974, as amended,
to make grants to states and other units of general local government to help finance Cmnmuuity
Development Programs; and
WItER'EAS, the COUNTY, as lbe recipient of Community Development Block Grant funds
under Title I of the Housing and Development Act of 1974, as amended, :for the Suffolk County
Community Development Consortium, pnrsuaut to Resolution Number 282-2000, is desirons of
establishing for participating mnnicipalities a loan pool to provide home improvement loans to
income eligible families, who are creditworthy and a loan pool to guarantee borne improvement
loans, at below current market interest rates; and
WHEREAS, tbe BANK agrees to participate in said loan program by making loans at a reduced
rate of interest to eligible homeowners of residential properties localed witbin the
MUNICIPALITY,
NOW, THEREFORE, in consideration of the premises aud tbe mutual covenants and conditions
herein contained, the parties hereto agree as follows:
1. The COUNTY and the MUNICIPALYFY shall place on dep}),sit with the BANK, witbin
ten husiness days ofthe final execulion ofthis contract, the sum ors ~;~7~/~7~7'g~, ~> in an
interest bearing Money Market account (hereinafter referred to as the Rehabilitation Account) as
described in Exhibit B. At no time during the term oftlfis AGREEMENT shall the interest rate
on each Rehabilitation Account be less lban three points below the rate on a one yea' treasury
obligation at constant maturity, as referenced iii the Federal Reserve Statistical Release 11.15
(519) published weeldy.
2. The COUNTY aud the MUNICIPALITY shall have the use oflhe 17unds on deposit in the
Rehabilitatioo Account to make grants, interest subsidies, loan guarantees and payment of
allowable program costs associated with the implementation of rebabilitalion activities for wbich
the MUNICIPALITY has placed fimds on deposit. The BANK sball place no restrictions on tbe
fimds in the Rehabilitation Account, except as otherwise specified in tile BANK's internal
guidelines pertaining to money market acconnts provided to olber cnstomers and applicable law.
3. In consideration £or the maintenance of the Rehabililalion Ac~:ounts, lbe BANK agrees to
make available loans up to an aggregate amount of $300,000 for loans at a fixed interest'rate of
8,% per annum for creditwortby individuals homeowners who are approved by the COUNTY and
considered creditworihy by the BANK ("file Creditworthy Loans") and to make available
Guaranteed Loans in an aggregate amount of up Io $200,000, at a fixed interest rate of 6% per
annum to individual homeowners who are approved and designated by the COUNTY but who do
not meet fl~e BANK's credit criteria ("the Guaranteed Loans").
CREDITWORTHY LOANS:
The COUNTY shall forward to the BANK a completed loan application and any
related forms and documents requested by the BANK which will enable the
BANK to make a credit decisiou. When the decision is made, the BANK will
noti fy lhe COUNTY tbrough a loan disposition sheet. The BANK agrees to
process the loan application in a timely manner, if the loan application is
approved. The BANK agrees to provide fimding for the approved loan in a
reasonably timely manuer.
Upon loan approval, lhe BANK will seud an lnstalhnent Loan Note and Security
Agreement ("NOTE") to lhe COUNTY :for execntion by the Borrower(s). The
COkINTY shall hold the Note pending receipt ora certification by the
Page 2 of 13
Community Development Bnilding Inspector evidencing complelion of the
improvement project and adherence to local bnilding laws.
Upon BANK's receipt of the executed Note and instructions from COUNTY, the
BANK shall disburse the proceeds ofthe Creditworthy Loan by issuing checks
made payable to fine contractor or any oilier person or entity as ma5, be designated
in writing by the COUNTY for each approved Loan. Tine 'BANK sball send fine
check to die COUNTY for distribution to the coutractor.
The BANK sball collect Creditworthy Loau repayments in accordance witb its
normal operating policies and procednres.
Loan terms Shall be for 60 nlonths. Minimnm and maximum dollar amounts for
eacb Creditworthy Loan shall be $1,500 - $25,000. The determination of loan
terms and amounts shall be at file Bank's sole discretion.
5. GUAKANTEED LOANS:
The COUNTY sbalI place with fl~e BANK, at fl~e lime of disbursement of the
Guaranteed Loan, a sum o f money equal to fifty percent of the aggregate uet
principaI unpaid balance of eacln Gnaranteed Loan (hereinafter referred to as
"Collateral."), for the life of the loan, which snms shall be used to secure half of
said Guaranteed Loan.
The COUNTY and the MUNICIPALITY shall establish all requirements wbich
must be met by all Borrowers in order to be eligible for Guaranteed Loaus. The
COUNTY shall designate approved homeowners by sending to fine BANK a
completed loan application, any related documentatiou, and a completed form of
file BANK's Installment Loan Note and Security AGREEMENT
The BANK agrees to accept any Guaranteed Loan approved and desiguated by the
COUNTY. Tbe BANK shall process all loans in a timely lhshion. The BANK
shall only have the right to decline Guaranteed Loans iu cases in which the
applicant may have a prior derogatory record with lbe BANK by reasou of frand,
litigalion, bankruptcy within the past seven years and there has not been a
reestablislm~ent of credit, or tlnere is an unsatisfied default.
. d.
The COUNTY and fine MUNICIPALITY shall bare the option of requiring tile
Borrower to exeeu~e a mortgage on the property that is lbe snb. iect oflbe
Guaranteed Loan for :fifty percent oflhe loan principal.
The BANK shall lnave the option of requiriug the Borrower to execute a mortgage
for fifty percent of the original loan principah The COUNTY and
MUNICIPALITY agree to expressly subordinate its mortgage lien to lien of the
BANK if tbe BANK elects to exercise its option to file a mortgage.
The BANK sball keep fine COUNTY informed according to legal notifications as
to the stares of any delinquent Gnaranteed Loans. The BANK shall follow its
normal collection efforts nntil a loan is 90 days delinquent. After a 90 day
delinquency, lhe Suffolk County Comnmnity Development Office and/or fine
MUNICIPALITY will assume counseling efforts. After a loan is 120 days
delinquent, the BANK may debit the respeclive collaleral fnnds for fifty percent of
the outstanding principal loan balance.
6. CREDIT LIFE INSURANCE:
The BANK shall offer credit life insurance to each eligible Borrower. However, credit
life insurance shall not be required and a horrower's refi~sal to oblain credit life insurance shall
have no inflnence ontbe credit decision on the application. If the. Borrower elects the credit life
insurance, file BANK shall arrange for coverage at tile Borrower's expense.
Page 3 of 13
7. REVOLVING ACCOUNTS:
(a)
The BANK agrees to establish and maintain Money Market Acconnts for the
MUNICIPALITY (hereafter refen'ed to as file "Revolving Accmmt"). Such
Revolving Accounts shall be established for the deposit of program income. The
BANK agrees to accept additional deposits of program income in the Revolving
Acconnt.
(b)
The BANK will place no restrictions on fllnds in tbe Revolving Accounts which
shall be used to make grants, subsidize file interest rales on loans, guarantee filture
loans and other matters in cmmection with this Community Development Housing
Rehabilitation Program, provided, however, that the accmmts shall be subject to
the Rules and Regulations relating to similar accounts. Funds fi'om the Collateral
Account which are no longer encumbered because ol'lhe fall repayment of
Guaranteed Loans shall be returned to the Revolving Accounts.
8. ADDITIONAL FUNDS:
The BANK agrees, if reqnested by the COUNTY, lo accept additional funds (in excess of
the amount set fro'th in Exhibit B, entitled "Suffolk County Participating Consortium Member
Funds).
9. ADDITIONAL MUNICIPALITIES:
Tile COUNTY and tile BANK agree that auy additional rmmicipality ill the consortium
which establisbes a rehak~ ~'ditatmn' ' program or any nmnicipality in Snfl'olk County that joius the
consortium wlfile this AGREEMENT is ill effect, shall be eligible Io execute an AGREEMENT
with similar terms and conditions as set forlh herein.
I 0. The COUNTY shall initiale and the BANK agrees to permit lhe use ofrehabilitation
funds wilhin 45 days of the deposit.
11. The BANK shall supply tile COUNTY with monthly statements showing account actMty
and closing balances as of the end of each month for the Rehabilitation Aceonnts and the
P, evolving Accounts. The BANK shall provide the COUNTY on a quarterly basis the nmnber
and dollar amounts of each loan approved during the quarter by lhe MUNICIPALITY and a
statement indicating the total dollar amount reqnired as collateral to cover the nnpaid loan
balance of Cmaranteed Loans.
12. The BANK shall maintain £ull and complete books m~d records for all accounts
established pursuant to Ibis AGREEMENT, in accordance with its generally accepted accounting
practices. Such books and records pertaining to this program shall be retained for a period of
five (5) years :from the termination of this AGREEMENT and shall, upon reasonable notice, and
at reasonable times, be available for audit and inspection by file County Comptroller or his duly-
designated representative or a duly-designated member of the Su flblk County Community
Development staff.
13. The COUNTY and the BANK understand that at tile termination of the AGREEMENT
all unobligaled flmds in the Collaleral, Rebabilitalion and Revolving Acconnts not expended or
disbm'sed or owed 1:o the BANK shall be transferred and directed to lhe COUNTY s Fund 352.
14. Termination oflhis AGREEMENT shall not affect loans made prior lo terminatim~.
15. NOT IN ARREARS OR DEFAULT:
The BANK warrants that it is nbt in arrears to the COUNTY or the MUNICIPALITY
upon debt or contract and is not in default as surety, contractor or otherwise on ally obligation to
the COUNTY or the MUNICIPALITY.
Page 4 nfl3
16. NO AGENCY OR PARTNERStlIP:
Nothing in this AGREEMENT shall be construed to express or imply that the COUNTY
or any of its employees, agents, representatives or subcontractors are the employees, agents,
representatives or subcontractors of the BANK or that the BANK or any of its employees, agents,
representatives or contractors are tile employees, agents, representatives or subcontractors of the
COUNTY. Each ofthe parties to this AGREEMENT shall be an independent contractor and
shall have responsibility for and control over the means of performance under this
AGREEMENT and compliance wifl~ all federal, state and local laws, rules and regulations
applicable to the parties' respective obligations under this AGREEMENT.
17. NO ASSIGNMENT:
Tbe BANK shall not assign, transfer, convey or otherwise dispose of this AGREEMENT
without the prior written consent office COUNTY.
18. INDEMNIFICATION:
The BANK shall indemnify and hold harmless tile COUNTY, its consultants (if any),
employees, agents and other persons from and against all claims, costs, judgements, liens,
encumbrances and expenses, iucluding attorneys' fees, arisiug out of the acts or omissions or
negligence of the BANK, its agents, employees or subcontractors in connection wifl~ the services
described or referred to in this AGREEMENT.
19. The COUNTY acknowledges that the BANK is subject to various federal, state and local
laws, rules and regulations (the "Laws and Regulations") and the COUNTY agrees that these
Laws and Regulations will take precedence over any requirements set forlh in the
AGREEMENT. To tile extent any provisioo of this AGREEMENT is deemed by the BANK to
violate or conflict with the Laws and Regulations, the AGREEMENT shall be modified so as to
avoid such violation or conflict.
20. SEVERABILITY:
It is expressly agreed that i'f any term or provision of tiffs AGREEMENT, or the
application thereo:fto any person or circumstances, shall be held invalid or unenforceable to any
extent, the remainder of this AGREEMENT shall not be al~fected fl~ereby, and every other term
aad provision o fthis AGREEMENT shall be valid and shall be en£orced to the fullest extent
permitted by law.
21. NO MODIFICATION/ENTIRE AGREEMENT:
It is expressly agreed that this instrnment represents the entire AGREEMENT of the
parties and that all previous understandings are merged in this AGREEMENT, and that no
modifications hereof shall be valid unless written evidence thereof shall be executed by the
parties thereof shall be executed by the parties hereto.
22. This AGREEMENT is subject to tbe laws of the State of New York and is subject to
Federal provisions governing Lump Sum Drawdown AGREEMENTs for property rehabilitation.
23. The parties shall comply with all laws, rules, orders, regulations and requirements of
federal, state aod local governments relating hereto as if they were set forth herein at length.
24. GRATUITIES:
The BANK represents and warrants that it is not offered or given any gratuity to any
official, employee or agent of Suffolk Couuty, New York State, or of any political party, wilh the
purpose or iotent of securing an agreement or securing favorable treatment with respect to the
awarding or amending of an agreement, or the making of any determinations with
respect to the performance of this AGREEMENT, and that the signer of this AGREEMENT
representing the BANK bas read and is familiar with the provisions of Local Law #32/1980,
(Chapter 386 of the Suffolk County Code) attached as Exhibit C.
Page 5 of 13
25. COLLATERALIZATION OF DEPOSITS
The BANK expressly represents and warrants its compliance wifl~ the provisions of
General Municipal Law, Section 10 and Suflblk County Local Law No. 4-1995 attached as
Exhibit D.
26. NON'DISCRIMINATION REOUIREMENTS
In accordance with Article 15 of the New York State Executive Law (also known as the
Iluman Rights Law) and all other state and 'federal statutory and constitutional non-
discrimination provisions, the BANK shall not discriminate against any employee or applicant
for employment because of race, creed, color, sex, uational origin, age, disability or marital status
or Vietnam Era Veteran status.
27. NON-DISCRIMINATION IN SERVICES
During the performance of this AGREEMENT, the BANK will not, on the grounds of
race, creed, color, national origin, sex, age, disability, marital status or Vietnam Era Veteran
status deny any iudividual any service(s) or other beuefits provided under ll~e program described
herein or provide any service(s) or other benefits to an individual which are different, or are
provided in a different manner from those provided to others under the program.
28. COUNTERPARTS
This Agreement .may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original; and all such counterparts shall
together constitute but one and the same Agreement.
END OF TEXT
EXHIBIT A
Page 6 of 13
EXHIBIT B
Suffolk County Participating Consortium Member
Funds
Community Development funds to be on deposit with Citibank, N.A. at the time of
execution of this Agreement for the Consortium Home Improvement Program shall not be less
than the following:
Funds to be Deposited
Suffolk County - 0 -
:,TOWNS:
Brookhaven $420,000.00
East Hampton $ 20,000.00
Riverhead - 0 -
Smithtown $ 50,000.00
Southampton $100,000.00
Southold $ 20,000.00
VILLAGES:
Village of Lake Grove
Village of Patchogue
Village of Port Jefferson
END OF TEXT
EXHIBIT B
$ 1,000.00
$ 6,000.00
$ 82,000.00
EXIIIBIT C
RESOLUTION NO. 1118-1980, ADOPTING LOCAL
LAW NO. 32 YEAR 1980, A LOCAL LAW
CONCERNING THE OFFERING, GIVING OR
RECEIVING OF A GRATUITY TO OR BY AN
OFFICIAL OF A POLITICAL PARTY.
WHEREAS, there was drily presented and introduced to this County Legislature at
a regular meeting held on December 9, 1980, a proposed Local Law entitled, "A LOCAL LAW
CONCERNING THE OFFERING, GIVEN OR RECEIVING OF A GRATUITY TO OR BY AN
OFFICIAL OF A POLITICAL PARTY," and said Local Law in final form is file same as when
presented and introdnced; now, fl~erefore, be it
RESOLVED, that said Local Law be enacted in form as follows:
LOCAL LAW NO. 32 YEAR 1980, SUFFOLK COUNTY, NEW YORK
LOCAL LAW CONCERNING THE OFFERING, GIVING OR RECEIVING OF
A GRATUITY TO OR BY AN OFFICIAL OF A POLITICAL PARTY.
BE IT ENACTED BY THE COUNTY LEGISLATURE OF THE COUNTY OF
SIJFFOLK AS FOLLOWS:
Section 1. Definitions
(a) As used herein, the word "Agreement" means any written or oral contract,
or any implied contract, including, but not limited to, a contract for the sale of goods or services,
a constmction contract or a lease or contract relating to real or personal property. The term
"Agreement" shall also include transaction whereby a person agrees to sell goods or services or
hoth the County pursuant to a successful bid.
(b) As used herein, the word "Gratuity" means any money, benefit,
entertainment, gift, or any other consideration whatsoever.
(c) As used herein, the phrase "official of a political party" shall mean a party
officer as defined by Section 1-104(5) of the Election Law.
(d) As nsed herein, the word "person" means any individual, partnerslfip, firm,
corporation, or oilier legal entity, as well as their employees, agents or representatives.
(e) As used herein, the phrase "political party" shall mean a party as defined by
Section 1-104(3) of the Eleclion Law.
Sectiou 2. Prohibitions
(a) It shall be a crime for any person to offer o!: give any gratuity to an official
of any political party, with the purpose or intent of securing or obtaining an Agreement with the
County of Suffolk, securing favorable treatment with respect to the awarding or amending of such
Agreement, or the making of any determination with respect to the performance of an Agreement.
(b) It shall be a crime for an official of a political party to solicit, receive or
accept a gratuity in connection with securing or obtaining an Agreement with the County of
Suffolk, securing favorable treatment witb respect to the awarding or amending of such
Agreement, or file making of a determination wifl~ respect to the performance of such Agreement.
Page 8 of 13
Section 3. Mandatory Contract Clause
In all Agreements with the County of Suffolk, made after the effective date of this
Law, there shall be a written representation by the person entering file Agreement with the County
tbat he bas not offered or given any gratuity to any official, employee or agent of Suffolk County,
New Yoflc State, or of any political party, with tbe purpose or intent of securing an Agreement or
securing favorable treatment with respect to the awarding or amending of an Agreement, and that
such person has read and is familiar with the provisions of this Local Law.
Section 4. Penalties
(a) Criminal. A violation ol' Section 2 of this Local Law sball be a Class A
Misdemeanor and sball be punishable hy a sentence of not more than one (1) year in prison or a
fine of not more than one tbousand dollars, or by such fine and imprisonment.
(b) Civil Remedies. A violation of Section 2 or 3 of this Local La~y shall give
the County the option, among other civil remedies ol' eitber terminating the Agreement or
deducting the value of the gratuity fi'om any amount due or to become due from the County
thereunder.
Section 5. Exceptious
Tiffs Local Law shall not apply to contributions to political parties, committees or
candidates as defined by Section 14-100(19) of the Election Law. Such contributions shall he
excluded from and shall not be in violation of this Local Law.
Section 6. Se_parabilit,~
If any part of tbis Local Law sball be declared unconstitnfional by any Conrt, such
declaration shall not affect fl~e constitutionality o1' any other part.
Section 7.
This Law shall take effect immediately.
DATED: December 9, 1980
END OF TEXT
EXItlBIT C
Page 9 of 13
EXHIBIT D
LOCAL LAW NO. 4 YEAR 1995
CONCERNING ESTABLISHING AN
INVESTMENT POLICY FOR SUFFOLK COUNTY
Section 1. Legislative Intent
General Municipal Law Section 39 requires the adoption of an investment
policy by the County of Suffolk, with approval by the County Legislature. The County
Treasurer has proposed an investment policy for the County of Suffolk based upon criteria
delineated in a model investment policy, which has been approved by the Office of the State
Comptroller.
Section 2. Scope
This investment policy applies to all moneys and other financial resources
available for investment by Suffolk County on its own behalf.
Section 3. Objectives
The primary objectives of the local government's investment activities are, in
priority order,
(legal);
to conform with all applicable federal, state and other legal requirements
to adequately safeguard principle (safety);
to provide sufficient liquidity to meet all operating requirements (liquidity); and
to obtain a reasonable rate of return (yield).
Section 4. Delegation of Authority
The Suffolk County Legislature's responsibility for administration of the
investment program is delegated to the Suffolk County Treasurer as set forth by the County
Charter, Article XV, establishing the Department of Finance and Taxation, the head of which
shall be the County Treasurer. The Charter provides that the County Treasurer shall receive
and have custody of all public funds belonging to or handled by the County. The County shall
have a written investment program which shall include procedures for adequate internal
control which provide a satisfactory level of accountability based on records incorporating
d~scription and amounts of investments, transaction dates, and other relevant information and
regulate the activities of subordinate employees.
Section 5. 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 Suffolk County 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 income 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.
Page 10 of 13
Section 6. Diversification
It is the policy of Suffolk County to diversity its deposits and investments by
financial institution, by investment instrument, and by maturity scheduling.
Section 7. Internal Controls
It is the policy of Suffolk County for all moneys collected by any officer or
employee of Suffolk County to transfer those fi~nds to the Treasurer within ten (10) days after
the end of the month, or within the time specified by law, whichever is shorter.
Pursuant to Resolution No. 1054 of 1983 and Resolution No. 15 of 1986,
county departments are to deposit all income into interest-bearing accounts. Standard
Operating Procedure D-08, daied October 21, 1992, directs departments to prepare and submit
monthly SCIN Form 212 to the County Treasurer indicating the balance in each bank account.
The Treasurer is 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.
Section 8. Designation of Depositories
The banks and trust companies authorized for the deposit of County monies are
designated each year at the organizational meeting of the Suffolk County Legislature, currently
Resolution No. 8 dated January 3, 1994, is in effect pursuant to Section 212 of the New York
County Law.
Section 9. Collaterizing of Deposits
In accordance with the provisions of General Municipal Law, Section 10, all
deposits of Suffolk County, 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 by a pledge of "eligible securities" with an aggregate "market value", or provided
by General Municipal Law, Section 10, equal to the aggregate amount of deposits from the
categories designated in Section 15 of this local law.
Section I0. Safekeeping and Collateralization
Eligible securities used for collaterizing deposits shall be held by 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 local government 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 which will enable the local government to exercise its rights against the
pledged securities. In the event that the secnrities are not registered or inscribed in the name
of the local government, such securities shall be delivered in a form suitable for transfer or
with an assignment in blank to the Treasurer or its custodial bank.
The custodial agreement shall provide that securities held by the bank or trust
company, or agent of and custodian for the local government, 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 banking for any other deposit or
other liabilities. The agreement should also describe that the custodian shall confirm the
receipt, substitution or release of the securities. The agreement shall provide for the frequency
of revaluation of eligible securities and for the substitution of securities which a change in the
rating of a security may cause ineligibility. Such agreement shall include all provisions
necessary to provide the local government a perfected interest in the securities.
Page 11 of 13
Section 11. Permitted Investments
As authorized by General Municipal Law, Section 11, Suffolk County
authorizes the Treasurer to invest monies not required for immediate expenditure for terms not
to exceed its projected cash flow in the following types of investments:
Special time deposit accounts;
Certificates of deposit;
Obligations guaranteed by agencies of the United States of America where the
payment of principal and interest are guaranteed by the United States of America;
Obligations of the State of New York;
Obligations issued pursuant to New York Local Finance Law Section 24.00 or
25.00 (with approval of the State Comptroller) by any municipality school district or district
corporations other than Suffolk County)
All investments obligations shall be payable or redeemable at the option of the
County of Suffolk within such times as the proceeds will be needed to meet expenditures for
purposes for which the monies were provided and, in the case of obligations purchased with
the proceeds of bonds or notes, shall be payable or redeemable at the option of the County of
Suffolk within two years of the date of purchase.
Section 12. Authorized Financial Institutions a ealo,-~
nd D ......
Suffolk County 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 local government conducts business must be creditworthy. Banks shall provide their
most recent Consolidated Report of Condition (Call Report) at the request of Suffolk County.
Security dealers 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 Treasurer is
responsible for evaluating the financial position and maintaining a listing of proposed
depositories, trading partners and custodians. Such listing shall be evaluated at least annually.
Section 13. Purchase of Investments
The Treasurer is authorized to contract for the purchase of investments directly,
including through a repurchase agreement, from an authorized trading partner.
All purchased obligations, unless registered or inscribed in the name of the local
government, shall be purchased through, delivered to and held in the custody of a bank or
trust company. Such obligations shall be purchased, sold or presented for redemption or
payment by such bank or trust company only in accordance with prior written authorization
from the officer authorized to make the investment. Ail such transactions shall be confirmed
in writing to Suffolk County by the bank or trust company. Any obligation held in the custody
of a bank or trust company shall be held pursuant to a written custodial agreement as described
in General Municipal Law, Section 10.
The custodial agreement shall provide that securities held by the bank or trust
company, as agent of and custodian for, the local government, 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 banking for any other deposit or
other liabilities. The agreement shall describe how the custodian shall confirm the receipt and
release of the securities. Such agreement shall include all provisions necessary to provide the
local government a perfected interest in the securities.
Page 12 of 13
Section 14. Repurchase Agreement
Repurchase agreements are authorized subject to the following restrictions:
All repurchase agreements must be entered into subject to a Master Repurchase
Agreement.
Trading partners are limited to banks or trust companies authorized to do
business in New York State and primary reporting dealers.
Obligations shall be limited to obligations of the United States of America and
obligations of agencies of the United States of America where principal and
interest are guaranteed by the United States of America.
No substitution of securities will be allowed.
The custodian shall be a party other than the trading partner.
Section 15. Schedule of Eligible Securities
(i)
Obligations issued, or fully insured or guarameed as to the payment of
principal and interest, by the United States of America, an agency
thereof or a United States government sponsored corporation.
(ii)
Obligations issued or fully guaranteed by the International Bank for
Reconstruction and Development, the Inter-American Development
Bank, the Asian Development Bank, and the African Development Bank.
(iii)
Obligations partially insured or guaranteed by any agency of the United
States of America, at a proportion of the Market Value of the obligation
that represents the amount of the insurance or guaranty.
(iv)
Obligations issued or fully insured or guaranteed by the State of New
York obligations issued by a municipal corporation, school district or
district corporation of such State or obligations of any public benefit
corporation which under a specific State statute may he accepted as
security for deposition of public moneys.
Section 16. Severabilitv
If any clauses, sentence, paragraph or subdivision of this law or the application
thereof to any person, individual, corporation, form, partnership, entity, or circumstance, shall
be adjudged by any court of competent jurisdiction to be invalid or unconstitutional, such
order or judgment shall not effect, impair, or invalidate the remainder thereof, but shall be
confined in its operation to the clause, sentence, paragraph, subdivision, or part of this law, or
in its application to the person, individual, corporation, firm, partnership, entity, or
circumstance, directly involved in the controversy in which such judgement shall be rendered.
Section 17. Effective Date
of State.
The law shall take effect immediately upon filing in the Office of the Secretary
END OF TEXT
EXHIBIT D
Page 13 of 13
JAMES C. McMAHON
Administrator
Telephone (631) 765-1892
Fax (631) 765-1366
Town Hall, 53095 Main Road
P.O. Box 1179
Southold, New York 11971
TOWN OF SOUTHOLD
COMMUNITY DEVELOPMENT OFFICE
INTER-OFFICE MEMO
TO:
FROM:
SUBJECT:
DATE:
Elizabeth Betty Neville, Town Clerk
Jim McMahon, Executive Assistant
CHIP Account
June 25, 2003
Please find the attached form that needs your certification, as to the attached
resolution.
Please return this form to me so I can forward it to Citibank.
Thanks .....
RECEIVED
& returned w/ signatures on rAIllO3
dL'~! '~ C 2003
Soulh01d Town Cleri
REGISTRAR OF VITAL STATISTICS
MARRIAGE OFFICER
RECORDS MANAGEMENT OFFICER
FREEDOM OF INFORMATION OFFICER
Town H~l,~53095~M~n Road
P.O. Box 1179
Southold, New York 11971
Fax (631) 765-6145
Telephone (631) 765-1800
southoldtown.northfork.net
OFFICE OF THE TOWN CLERK
TOWN OF SOUTHOLD
THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 337 OF 2003
WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD
ON JUNE 3, 2003:
RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs
Supervisor Joshua Horton and Deput~ Supervisor Martin Sidor to sign signature cards for
the Town of Southold Consortium Home Improvement Program (CHIP) account at Citibank.
Elizabeth A. Neville
Southold Town Clerk
CitiBusiness - Public Entity Bank Account Resolution
Deposit Authority ONLY
c bank
I. thcu,,dcr~igncd, Elizabeth A. Neville ,,h~ Town Clbrk ,,rTown of Southold
· aPublicF.,i,y. CPuhlicF. n,Jty")l.caCdalP.O. BOX 6100 ~ Hau__opauqe. NY 11788-0099
It I:.NOINED, that
2.
Joshua Y. Horton, Supervisor Town of:Southold sin.ql¥
Martin H. Sidor, Deputy Supervisor, Town of Southold singly
(o bc unquatificdly endorsed I~ this Public Entity;
d.) To make deposits ol'cLirrcncy for thc account of this Public EnlJty:
Public Entity Bank Account Resolution - Page I of 3
Rev J,'m 2002
Ill. hi the event ur;iffy litig:~tinn in wi]ich the Bank :md the Puhlic £ntity :Ire adverse p:*rtles, the right (o a trial by jury and tn interpnse
auy defense b~lsed upnn any Statute el' Limita/ions or any claims er I;iche$, and ~ny offset or counter claim of any mlture or description,
establish a cm~rsc oCcimduc~. The Public Entity agrees that by ~lpplyi~g I*nr or opening a B;ink depnsit account orany type with Bank or by
accepting any b:mking service connected with any o1' these accoul~t types, either Bank or the Public Entity may elect to require that any
dispute between ~s concerning the aforementioned accounts or ;Iny other Bank deposit account(s) will be resolved by binding
arbitration.
II
Public Entity Bank Accoun~ Resolution - Page 2 of 3
Joshua Y. Horton Supervisor, Town of Southold
Martin H. Sidor, Deputy Supervisor, Town of'Southold
I I"UI~TII[I{ CERTIFY that there is n(~ provision in thc statutes applicable ~o, or organizational documcn{~ o1~ thc Public Entity, limkin§ thc p~wcr or'Iht Governing
Elizabeth A. Neville, (.Town Clerk, 'lgown of Southold
Public Entit/Bank Account Resolution - Page 3 of 3
Rev