What is NYCLASS?

General Information

New York Cooperative Liquid Assets Securities System (NYCLASS) is a short-term, highly liquid investment fund, designed specifically for the public sector. NYCLASS provides the opportunity to invest funds on a cooperative basis in short-term investments that are carefully chosen to yield favorable returns while striving to provide maximum safety and liquidity.

Who Can Participate?

Participation is available to any municipal corporation or special-purpose district empowered under New York state statute including counties not within the City of New York, cities, towns, villages, school districts, boards of cooperative educational services, and fire districts. Also eligible are county or town improvement districts where the respective county or town is required to pledge its faith and credit for the district’s debt service.

NYCLASS is subject to the Municipal Cooperation Agreement Amended and Restated as of March 14, 2014 (the Agreement) and is structured in accordance with New York State General Municipal Law (GML), Article 3-A and Article 5-G, Sections 119-n and o, and Chapter 623 of the Laws of 1998. All NYCLASS investment and custodial policies are in accordance with GML, Sections 10 and 11 (as amended by Chapter 708 of the Laws of 1992). The Agreement is between the Village of Potsdam (Lead Participant) and each district and/or municipal corporation that formed the original NYCLASS fund or that subsequently elects to participate; all parties to the Agreement are collectively referred to as “the Participants.”

The Agreement is administered by an elected Governing Board (the Board) of up to fifteen members. The Governing Board is responsible for:

  • Administering all aspects of the Agreement.
  • Entering into appropriate contracts to assist in the management of the Agreement.
  • Monitoring compliance with the investment policy, maturity limitations, and reporting and disclosure requirements established under the Agreement.
  • Testing the investments made pursuant to the Agreement, at least once a month, for sensitivity to changes in interest rates.
  • Disclosing to Participants any rating or change in rating from a nationally recognized statistical rating organization.

A Board member must be either a Participant’s Chief Fiscal Officer, other designated officer, or employee of the Participant who has knowledge and expertise in financial matters.

The Board invests cooperative funds only in securities that are legal for public funds investment in New York. The Board limits these investments to repurchase agreements collateralized at 102% with U.S. Treasury securities and agency securities backed by the full faith and credit of the U.S. Government, U.S. Treasury bills and notes, collateralized bank deposits, and other U.S. Government guaranteed obligations such as small business administration pools.

NYCLASS has four general objectives:

  1. Legality
    • To invest only in investments legally permitted under New York State GML.
  2. Safety
    • To minimize risk by managing portfolio investments to preserve principal and maintain a stable Net Asset Value (NAV).
    • To maintain the highest money market rating for the NYCLASS portfolio from a nationally recognized statistical rating organization.
  3. Liquidity
    • To manage portfolio investments in a way that ensures that cash will be available as required to finance Participants’ operations.
  4. Yield
    • To maximize current income to the degree consistent with legality, safety, and liquidity.

Take Your First Step Towards Investing in NYCLASS!

Learn more about investing public funds on behalf of your municipal corporation. We encourage you to try out our Investment Calculator and see how much your investments could have earned if you had already started your investment journey with NYCLASS. Let us help by providing a quality investment option for your municipal corporation!

Investment Calculator

General Questions

  • Who oversees NYCLASS?

  • The NYCLASS Municipal Cooperative Agreement is administered by an elected Governing Board (the Board) of up to fifteen members. A Board member must be either a Participant’s Chief Fiscal Officer, other designated officer, or employee of the Participant who has knowledge and expertise in financial matters. The Board retains the services of Public Trust Advisors, LLC  to serve as the Program Administrator and Investment Advisor.

  • Who is eligible to use NYCLASS?

  • Participation is available to any municipal corporation or special-purpose district empowered under New York state statute including counties not within the City of New York, cities, towns, villages, school districts, boards of cooperative educational services, and fire districts. Also eligible are county or town improvement districts where the respective county or town is required to pledge its faith and credit for the district’s debt service.