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HomeMy WebLinkAboutResolution - 021339A - Offer Of Citizens National Bank To Account For All City Funds Is Accepted - 02_13_1939 4" OZI 339 RESOLUTION VYHEREAS, the City has sought in the proper manner for a bid for depository of the 1�'ity's funds, and failed to secure any bid to pay interest on daily balance , and the Citizens National Bank, Lubbock, Texas , has offer4d to continue as depository for such funds and to secure the same with legal securities , but pay no interest, therefore ; A RESOLUTION accepting the offer of the Citizens National Bank, Lubbock, Texas, to receipt, properly keep and account for the City's funds, and to secure the same with collateral admissible under Chapter 3 of Title 47 of the Revised Statute of Texas, and to permit the �'Jty to dispose of the collateral on default; providing for a contingency of there being enacted a state law requiring a depository to pay interest, and declaring an emergency account of inability to secure a bid more satisfactory and to properly secure the funds. BE IT RESOLVED BY THE CITY CQblMISSION OF THE CITY OF LUBBOCK, TEXAS. 1. That the offer of the Citizens National Bank, Lubbock, Texas, to receive And account for all funds of the Uity, said Bank to accept negotiable items subject to collection thru the- regular channels; to pay all lawfully issued demands on said funds, within the credit of the City on deposit, to keep the funds separate and to render statements as often as required; and to deposit with the City lawfully issued securities admissible under Uhapter 3 of Title 47 of Revised Civil Statutes; with the right of the City to require at all times such security to equal in market value the funds with said bank; and the further right of the City to dispose of the collateral security to recoup itself for any unpaid and unhonored lawful demands on it, be and the same is accepted. 2. That the foregoing agreement of deposit and security shall be effective from this date for a period ending December 31, 1940. 3. Provided: Should there be enacted during the life of this Resolution a law requiring payment of interest on daily balances the City shall receive the Minimum rate during the remainder of the term. 4. The fact that the time has elapsed within which another depository should have been selected, or the former contract renewed and the desire of the City to be protected by collateral, creates an emergency and public necessity that this resolution be finally passed and enacted at the meeting of its introduction, and it is so ordered. Passed by unanimous vote of the City Commission and approv .. by the Mayor, this 13th day of February 19319. lla o Att ity* Secretary.