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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
Kay Johnson, Finance Director |
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SUBJECT: |
Resolution Approving Finistar Investment |
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DATE: |
December 4, 2006 |
The purpose of this memorandum is to request Council approval for an additional investment instrument for the Town.
Finistar, Inc., working with Gateway Bank and Trust Company as a fiscal agent, has developed an investment instrument which provides master Negotiable Order of Withdrawal accounts for North Carolina local governments (See Attachment 1, Custodial Agreement). The program has been approved by the Local Government Commission, and over the last year has consistently offered higher rates of interest than the Town is currently receiving from the Capital Management Trust. The program invests local government funds in approved banks throughout North Carolina, limiting the investments to the Federal Deposit Insurance Corporation maximum of $100,000 at each bank.
That the Council approve the attached resolution, as approved by the Local Government Commission, authorizing the Finance Officer to enter into an agreement with Finistar, Inc. to serve as a custodian for selected Chapel Hill funds.