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Aberdeen board authorizes up to $3 million placement with First National Bank at 5.35%
Summary
The Aberdeen Town Board authorized staff to place up to $3 million with First National Bank’s program offering a six-month fixed/withdrawable product at 5.35% and to allow either the town manager or finance director to sign required documents; staff noted collateralization requirements under General Statute 159-31.
Aberdeen — The Aberdeen Town Board on Aug. 12 authorized staff to move up to $3 million of town funds to First National Bank’s program and allowed either the town manager or finance director to sign the legal documents.
Staff said the bank’s packet offers a six‑month rate of 5.35% for the product described in the materials and emphasized that all town funds must remain collateralized under state law (General Statute 159-31), which the packet addresses through the bank’s arrangement to spread deposits across institutions.
Board members discussed whether one or two signatures should be required for transactions; the board authorized either the town manager or finance director to sign and approved moving up to $3 million by voice vote.
What it means: staff described the action as a reallocation of existing investments to improve short‑term returns while preserving liquidity and statutory collateralization. The finance director or town manager will execute paperwork as authorized.
