HomeMy WebLinkAboutResolution - 121968C - City Manager Authorized To Select U.S. Bonds, Treasury Notes Etc. - 12_19_1968IIKJ_EW,
.RESOLUTION
WHEREAS, the City of Lubbock by various ordinances has authorized issuance
f various bonds in various amounts and the ordinances all provide interest and
inking funds as required by law, including reserve funds to pay the obligations
.ierein created, and special funds were created in the Citizens National Bank of
,ubbock, Lubbock County, Texas, which are designated as special funds for each
f said bond funds and said bank was designated custodian of various funds and pay-
zg agent of the bond provided for in said ordinances; and,
WHEREAS, the City of Lubbock now has on deposit in said funds and in variou
ether funds in said bank substantial sums of money, and the governing body of the
;ity of Lubbock desires to invest a part of said funds in United States Government
securities as provided in Art. 836, Revised Civil Statutes of Texas and in other
egal investments, NOW THEREFORE:
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. The City Manager, or his authorized representative, is her
by authorized to select United States Bonds, Certificates of Indebtedness c
the United States, Treasury Notes of the United States, and other evidence
of indebtedness of the United States which are guaranteed as to both prin-
cipal and interest by the United States Government, which securities are t
be purchased by and held for the benefit of those funds as may be indicated
by the said City Manager, or his authorized representative; provided how
ever, that when securities are to be paid for out of bond retirement and
interest and sinking funds, the only securities which may be purchased ar(
bonds of the United States Government or other evidences of indebtedness
of the United States as stated above or as they may be limited by the Ordi•
nance which created such bond retirement and interest and sinking fund
may specifically provide for.
SECTION 2. The Citizens National Bank of Lubbock, Lubbock County,
Texas, designated as Custodian and depository of City funds, is hereby autr
orized and directed upon request of the City Manager, or his authorized
representative, to invest any and all funds in such previously specified
securities as may be selected by said City Manager, or his representative
which securities shall be paid for out of such funds as he may direct, and
upon delivery of such securities, or their receipts, shall become a part of
such fund.
SECTION 3. The Citizens National Bank of Lubbock, Lubbock County,
Texas, as custodian and depository of City funds, is authorized and direct
ed to convert said securities into cash on direction of the City Manager or
his authorized representative'.. for benefit of the accounts from which said
securities were purchased, PROVIDED that said bank shall not be liable
for loss, if any sustained due to any decrease in value of the securities
purchased under this authority, but FURTHER PROVIDED, said bank
otherwise be liable as the custodian and depository of said funds, incl
bonds and/or certificates, and interest accruing from any such invest
SECTION 4. The City Manager, or his authorized representative, is
hereby authorized to trnasfer such monies, as he in the exercise of his
discretion may choose, from checking accounts into time --deposit open
accounts and vice -versa, and to purchase certificates of deposit as con-
templated by the depository contract with Citizens National Bank of Lub-
bock, Lubbock County, Texas.
SECTION 5. The investments herein authorized are subject to the terms
of the depository contract heretofore made or as may be hereinafter
mutually agreed upon, and nothing herein shall be construed to authorize
any breach of said contract.
SECTION 6. In order for the City Council to meet its fiscal responsibi-
lity as required and provided in the Charter of the City of Lubbock, the
City Manager shall report each month all purchases of securities and/or
Certificates of Deposit purchased, sold, deposited or matured during the
preceeding month;attached to such report shall be information secured
from banks in San Francisco, New York, St. Louis and Dallas showing
the market on bonds, securities and Certificates of Deposit on the date
such sale, or purchase of any bonds, security or certificate of Deposit
was made with or for funds belonging to the City of Lubbock.
SECTION 7. All funds of the City of Lubbock, subject to investment as
provided above, which are presently invested in securities other than the
type stated above, shall, on maturity of the present investment, be invest
in the type of securities stated above.
SECTION 8. It is the stated intention that any funds invested hereby sha:
be held in such investment to maturity thereof unless the invested fund is
required for its established purpose before maturity.
APPROVED:
Fred O. Senter, Jr., City AttorjeWy
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