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Flashcards in Investment Policies & Procedures Deck (9)
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1
Q

If County Board decides not to create its own investment policy, then it (thru the Clerk) must invest in what 4 categories?

A

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.

2
Q

Can LG governing Board invest in anything other than that specified in 218.415?

A

No, not unless it has created its own investment policy.

3
Q

Must Clerk follow the Board’s direction on investment?

A

NO unless policy.
———–
Yes, if the Board has created a policy. If not, Clerk may invest in the 4 categories as he sees fit.
———–
See, Seminole County case, re: Clerk investing.

4
Q

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

A

B

See, Seminole County case, re: Clerk investing.

5
Q

Only local resolutions and ordinances govern the investment of funds by a LG.

A

FALSE

6
Q

There are no limitations on the investment of LG funds in derivative financial products, other than local ordinances or resolutions.

A

FALSE

7
Q

What are the limits placed on investment of LG funds in derivative financial products?

A

FINANCE

  1. Must be specifically authorized.
  2. CFO must have developed sufficient understanding & have expertise to manage.
8
Q

Can LGs use reverse repurchase agreements or other forms of leveraged investments?

A

Prohibited generally.
Or may be limited to transactions where
1) Proceeds are intended to provide liquidity
2) LG has sufficient resources + expertise.

9
Q

Who has discretion to determine investments?

A

Clerk of Circuit Court UNLESS LG board by resolution adopted an investment policy. Once policy is in place, Clerk must comply.

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