General Policy: 405 Guidelines

In selecting financial institutions and investment instruments to be used, the following general objectives should be considered in the priority listed:

1. Legality and safety, conforming to all legal requirements such as:
   1. Investments will be made only in securities guaranteed by the U.S. government, or in FDIC insured institutions including SAIF of the FDIC
   2. Deposit accounts in banks or savings and loan institutions will not exceed the amount insured by FDIC coverage, unless adequately collateralized pursuant to Regulations of the Federal Reserve regarding custody and safekeeping of collateral
   3. Authorized investments include and will primarily consist of: Certificates of Deposit, Treasury Bills and other securities guaranteed by the U.S. Government, participation in the State of Illinois Public Treasurer’s Investment Pool, and any other investments allowed under state law that satisfy the investment objectives of the Library district
2. Liquidity, preserving capital and including diversification appropriate to the nature and amount of the funds such as:
   1. Investments should in general be managed to meet liquidity needs for the current month plus one month, based on forecasted needs, and any reasonably anticipated special needs
3. Yield-return on investment, maintaining sufficient liquidity to meet current obligations and those reasonably to be anticipated such as:
   1. Within the constraints on Illinois law, considerations of safety, and this investment policy, every effort should be made to maximize return on investments made
   2. All available funds will be placed in investments or kept in interest bearing deposit accounts as allowed by law
4. Simplicity of management, the time required by the Library’s Business Office to manage investments shall be kept to a minimum

Adopted by the Board of Trustees December 13, 1999; Revised June 12, 2006; Updated December 11, 2017