HomeMy WebLinkAboutResolution - 090954B - CNB May Expedite Pledging, Release, And Substitution Of Securities - 09_09_1954 AM
RESOLUTION
AREAS, Article 2560 R. C. S. Section (d) provides that a City Deposi-
tory way pledge with the governing Lbdy of such City for the purpose of secur-
2 copies ing such City funds, securities of the kind named therein, in an amount equal
Mailed ti to the amount of City funds on deposit in said depository bank and the City is
Harold therein authorized to accept said securities in lieu of all Personal or Corpor-
Munn ate Surity Bonds, which securities so pledged shall be deposited as the gov-
at C it z . erning body may direct provided such securities so pledged shall be approved
Na t'Il.Ba n as to kind and value by the governing body of the City; and,
9-15-54,
& one sen WHEREAS, the said article further provides that when the securities pledged
to 'City by the depository bank to secure City Ponds shall be in excess of the amount re-
Attorne ,7 quired to be pledged by law, the governing body of the City shall permit the
release of such excess; and when City funds deposited with such depository bank
shall for any reason, increase beyond the amount of securities pledged said de-
pository bank shall immediately pledge additional securities with the governing
body so that the securities pledged shall at no time be of a value of less than
the total amount of City funds on deposit in said depository bank; and,
WHEREAS, said article further provides that the determination of the value
of securities pledged or to be pledged shall be in the discretion of the govern-
ing body, and the RIGHT OF SUBSTITUTION of securities shall be granted to the
depository, provided the securities substituted meet with the requirements of
r the law, and are approved by the governing body; and,
WHEREAS, it is the desire of the governing body of the City of Lubbock to
expedite the pledging of securities, release of securities and substitution of
securities so pledged by its depository, Citizens National Bank; THEREFORE,
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LUBBOCKt
SECTION 1. That when said depository bank, in exercising its right of sub-
stitution, release or pledging of securities, submits for the purpose of secur-
ing City funds in such depository, securities of the following kind, to-wit,
United States Bonds, Certificates of Indebtedness of the United States, Treasury
Notes of the United States, and other evidences of indebtedness of the United
States Which are guaranteed as to both principal and interest by the United
States Government, the City Secretary-Treasurer may, with the approval of the
City Auditor authorize the substitution, release and pledging of the kind of
securities named next above, PROVIDED, however, that the total value of securi-
ties of said depository pledged to secure City funds shall at all times be equal
in value to and otherwise adequate to secure the funds of the City of Lubbock
in said depository bank.
SECTION 2. When any such securities have been released, substituted or
pledged, the City Secretary-Treasurer shall report same to the City Commission
at its next regular meting and record the complete transaction including the
depositoryts original application and the securities affected.
On motion of Commissioner Forrest seconded by Conmds-
sioner Carpenter , this Resolution was passed unanimously on
Ti, this the Sth day of September, 1954.2 by the City Commission.
MU p T
ATTEST:
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Lav nia Lowe, C y Secre ry-Treasurer
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CITY OF LUBBOCK
r^ NE RANDUM, Inter Office
T0: City Manager Date August 20, 1954
FROM: Vaughn E. Wilson, City Attorney
SUBJECT: Resolution Establishing Method of Authorizing Depository Bank
to Exchange Securities Pledged Wit)r City.
AGENDA ITEM
A request was ma a at�the last meeting of the Commission concerning
exchange by the depository bank of securities pledged with the City, to
facilitate handling the exchange.
In view of Article 2560 which gives depository the right of substi-
tution limited by the Commissions right to determine value of the secur-
ities which must be approved by them.. I believe the method established
in the attached resolution will most legal requirements in making exchange.
By this resolution the Commission approves United States Bonds etc.
named in Section 1, places responsibility upon the City
Secretary-Treasur-er and the Auditor to at all times determine whether pledged securities
are adequate to fully cover the City's deposits. The resolution also pro-
vides for report to the City Commission and recording of the original ap-
plication for exchange so that the Commission will at all times be advised
concerning any exchanges.
Under this resolution if securities other than those mentioned are
tendered by the depository, it will be necessary that the application be
approved by the Commission. Within my experience, the depository has
always pledged securities of the kind mentioned in Section 1.
VAUGHN E. WILSOF
City Attorney
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