HomeMy WebLinkAboutResolution - 2005-R0450 - Bank Depository Contract - Wells Fargo Bank - Municipal Banking Services - 09_21_2005Resolution No. 2005-RO450
September 11, 2005
Item 33
RESOLUTION
WHEREAS, the City Council finds that it would be in the public interest to enter
into a Bank Depository Contract with Wells Fargo Bank for municipal banking services
for a three-year period; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby authorizes and directs the
Mayor of the City of Lubbock to execute the Bank Depository Contract and any
associated documents with Wells Fargo Bank Texas N.A. for a three-year period
beginning November 21, 2005, a copy of which contract is attached hereto and made a
part hereof for all intents and purposes.
Passed by the City Council this 21stday of September _'2005.
UGAL, MAYOR
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
/ 'd .0 't L�_�_
Le Ann Dumbauld, City Manager
APPROVED AS TCT ORM:
r r_ A
D andiver, ey of Counsel
DDms/BankDepConWe11sFargoRes
September 9, 2005
Resolution No. 2005-RO450 CONTRACT NO.
• i
•
BANK DEPOSITORY CONTRACT
This DEPOSITORY CONTRACT is made and entered into on the date last herein written by
and between THE CITY OF LUBBOCK, hereinafter called "DEPOSITOR", and WELLS
FARGO BANK TEXAS, N.A., a national banking association, organized under the laws of
the United States and authorized by law to do banking business in TEXAS and now
conducting such business in said State, hereinafter called "BANK", and is as follows:
DEPOSITOR, through action of its governing Board, hereby designates BANK as a
depository for the period beginning November 21, 2005, and continuing through November
20, 2008, with two possible one-year extensions dependent upon Council approval.
II
DEPOSITOR and BANK, by execution of this Depository Contract, hereby designate the
Federal Reserve Bank, hereinafter called "TRUSTEE", to hold in trust, according to the
terms and conditions of this Depository Contract and the attached "Federal Reserve Bank
Operating Circular 8", the collateral and substitute collateral described under said
agreements.
III
During the term of this Depository Contract, the DEPOSITOR will, through appropriate
action of its governing Board, designate the officer, or officers, who singly or jointly will be
authorized to represent and act on behalf of the DEPOSITOR in any and all matters of every
kind arising under this Depository Contract and to (a) execute and deliver to BANK an
electronic fund or funds transfer agreement (and any addenda thereto), (b) appoint and
designate, from time to time, a person or persons who may request withdrawals, orders for
payment or transfers on behalf of DEPOSITOR in accordance with the electronic fund or
funds transfer agreement and addenda and (c) make withdrawals or transfers by written
instrument.
IV
DEPOSITOR'S Request for Application (RFA) dated August 5, 2005 and BANK'S Response to
the RFA dated August 29, 2005 is incorporated herein for all purposes; however, to the extent
that any provision therein conflicts with any provision herein, the DEPOSITOR'S RFA and
the BANK's response to that RFA will control.
V
DEPOSITOR may arrange for time deposits, and BANK may accept and shall hold such
deposits subject to payment in accordance with the terms of the deposit. Interest shall be
calculated at the rate, which BANK has bid for the particular denomination and time period
of said deposit at competitive public bidding for said deposits. Time deposits will mature on
or before the expiration of this Depository Contract. All Time Deposits that mature beyond
the expiration of this Depository Contract win be at non -contractual interest rates negotiated
at the time of purchase.
Depository Contract Page 1
VI
BANK will be compensated for any and all services rendered to DEPOSITOR under this
Depository Contract on a fee basis. The account analysis shall be received by the fifth
working day of the month. If the DEPOSITOR notes no changes or exceptions within five
working days, the master account may be debited for fees incurred.
VII
All funds on deposit with BANK to the credit of the DEPOSITOR shall be secured by
collateral as provided for in the Public Funds Collateral Act of 1989 as amended (Chapter
2257 of the Texas Government Code) excluding letters of credit. The total market value of
the collateral (which includes accrued interest or income to the extent it is not included in the
market price) securing such deposits will be in an amount at least equal to 102% of the
amount of such deposits plus the amount of any accrued interest thereon and less the
amount that such deposits are insured by an agency or instrumentality of the United States
government. The market value with respect to any securities (collateral) as of any date and
priced on such date will be obtained from a primary dealer. When additional collateral is
required to cover incremental deposits, BANK must receive the request for collateral prior to
10:30 a.m. on the day the deposits are actually received. Twenty-four hours notice is
necessary on incremental deposits in excess of $3 million. It is the responsibility of the
BANK to monitor and maintain collateral and margins on a daily basis.
Vill
BANK has heretofore or will immediately hereafter deliver to TRUSTEE collateral of the
kind and character above mentioned of sufficient amount and market value to provide a
margin of 102% market value on the collateral for the funds of DEPOSITOR deposited with
BANK. Said collateral or substitute collateral, as hereinafter provided for, shall be kept and
retained by TRUSTEE in trust so long as the depository relationship between DEPOSITOR
and BANK shall exist hereunder, and thereafter so long as deposits made by DEPOSITOR
with BANK hereunder, or any portion thereof, shall have not been properly paid out by
BANK to DEPOSITOR or on its order.
W
TRUSTEE will accept said collateral and hold the same in trust for the purpose herein
stated. See the attached "Federal Reserve Bank Operating Circular 8".
Depository Contract Page 2
Vi
Should BANK fail at any time to pay and satisfy, when due, any check, draft, or voucher
lawfully drawn against any deposit and the interest on such deposits or in any manner
breach its contract with DEPOSITOR, DEPOSITOR shall give written notice of such failure
or breach to BANK, and BANK shall have three (3) business days to cure such failure or
breach. In the event BANK shall fail to cure such failure or breach within three (3) business
days or should the BANK be declared insolvent by a Federal bank regulatory agency, it shall
be the duty of TRUSTEE, upon demand of DEPOSITOR (supported by proper evidence of any
of the above -listed circumstances), to surrender the above -described collateral to the
DEPOSITOR. DEPOSITOR may sell all or any part of such collateral and out of the proceeds
thereof, pay DEPOSITOR all damages and losses sustained by it, together with all expenses
of any and every kind incurred by it on account of such failure or insolvency, or sale,
accounting to BANK for the remainder, if any, of said proceeds or collateral remaining
unsold.
XI
Any sale of such collateral, or any part thereof, made by DEPOSITOR hereunder may be
either at public or private sale; provided, however, it shall give to both TRUSTEE and BANK
two (2) hours notice of the time and place where such sale shall take place, and such sale
shall be to the highest bidder therefor for cash. DEPOSITOR and BANK shall have the right
to bid at such sale.
XII
If BANK shall desire to sell or otherwise dispose of any one or more of said securities so
deposited with TRUSTEE, it may substitute for any one or more of such securities other
securities of the same market value and of the character authorized herein after approval by
the DEPOSITOR which shall not be unreasonably withheld. Such right of substitution shall
remain in full force and may be exercised by BANK as often as it may desires provided,
however, that the aggregate market value of all collateral pledged hereunder, shall be at
least equal to the amount of collateral required hereunder. If at any time, the aggregate
market value of such collateral so deposited with TRUSTEE be less than 102% of the total
sum of the DEPOSITOR's funds on deposit with said BANK, BANK shall immediately
deposit with TRUSTEE such additional collateral as may be necessary to cause the market
value of such collateral to equal the total amount of required collateral. BANK shall be
entitled to income on securities held by TRUSTEE, and TRUSTEE may dispose of such
income as directed by BANK without approval of DEPOSITOR.
Grill
TRUSTEE shall promptly forward to DEPOSITOR copies of safekeeping or trust receipts
covering all such collateral held for BANK, including substitute collateral as provided for
herein.
Depository Contract Page 3
XIV
If at any time the collateral in the hands of TRUSTEE shall have a market value in excess of
the required collateral due DEPOSITOR by BANK, the DEPOSITOR shall authorize the
withdrawal of a specified amount of collateral, TRUSTEE shall deliver this amount of
collateral (and no more) to BANK, taking its receipt therefor, and TRUSTEE shall have no
further liability for collateral so redelivered to BANK.
M
Either DEPOSITOR or BANK shall have the right to terminate this Agreement prior to the
expiration date by advance written notice to the other of its election to do so, and this
Agreement shall be void from and after the expiration of ninety (90) days after the receipt of
such notice, provided all provisions of this agreement have been fulfilled.
M1
When the relationship of DEPOSITOR and BANK shall have ceased to exist between
DEPOSITOR and BANK, and when BANK shall have properly paid out all deposits of
DEPOSITOR, BANK shall notify DEPOSITOR and it shall be the duty of DEPOSITOR to
give TRUSTEE certificate to that effect; whereupon TRUSTEE shall, with the approval of
DEPOSITOR, redeliver to BANK all collateral then in its possession belonging to BANK,
taking its receipt therefor. An order in writing to said TRUSTEE by DEPOSITOR and a
receipt for such collateral by BANK shall be a full and final release of TRUSTEE of all duties
and obligations undertaken by it by virtue of these presents.
Executed this 21st day of September , 2005 under the provisions of FIRREA by the
undersigned duly authorized officers of the parties hereto.
FOR DEPOSITORY BANK: Resolution Number ##2005—R0450
THE CITY OF LUBBOCK:
B
C M DOUGAL, MAYOR
TITLE: SSIc C � lt� s, n�
ATTEST:
ATTEST:
Rebecca Garza, City Secretary
TITLE:
Depository Contract Page 4
APPROVED AS TO CONTENT:
Lee Ann Dumbauld,
City Manager
APPROVED AS TO FORM:
ona d G. Vandiver,
Attorney of Counsel
Attachments: Federal Reserve Bank Operating Circular 8
Wells Fargo Bank Texas, N.A. Application and Bid for Depository
Services
Depository Contract Page 5
Table of Contents Operating
Circular
8
COLLATERAL
Page
1.0 Purpose, Scope and Effect of this Circular ....................................... 1
2.0 Purposes for which Collateral May be Held ...................................... 1
3.0 Definitions..............................................................2
4.0 Terms................................................................2
5.0 National Collateral Monitoring & Customer Service for Certain Treasury Programs........ 4
6.0 Right to Amend.......................................................... 4
Appendices
Appendix A -Depositary, Financial Agency, and Collateral Agreement ................... 5
Appendix B-Resolution Authorizing Execution of Depositary,
Financial Agency, and Collateral Agreement ...................................... 7
Operating Federal Reserve Bank Operating Circular No. 8
Circular October 23, 2000
8
1.0 PURPOSE, SCOPE
AND EFFECT OF
THIS CIRCULAR
1.1 This Collateral Operating
Circular ("Circular") specifies, in Section
2, the purposes for which the Federal
Reserve Bank of (City) ("this Reserve
Bank"), in its individual capacity and as
Fiscal Agent of the United States, holds col-
lateral as custodian for the benefit of the
Pledgee to which the collateral has been
pledged.
1.2 This Circular also contains, in
Section 4, provisions under which this
Reserve Bank holds collateral in definitive
form for the purposes specified in
Subsections 2.4, 2.5, 2.6, 2.7 and 2.8
of this Circular.
1.3 By requesting this Reserve Bank to
hold collateral as custodian for the benefit
of a Pledgee, a Pledgor agrees to accept and
be bound by all the terms of this Circular,
any other applicable Reserve Bank operating
circulars, and all applicable Treasury regula-
tions and other instructions, such as those
contained in the Treasury Financial Manual
(TFM) , as such documents may be amended
from time to time.
1.4 Nothing contained in this Circular
shall be construed as restricting the statutory
authority of the Secretary of the Treasury, or
his designee (the "Secretary"), to direct this
Reserve Bank to provide fiscal agency and
depositary services. In the event of any
conflict or inconsistency between the terms
of this Circular and any directions from the
Secretary, the Secretary's directions shall govern.
1.5 In the event of any conflict or incon-
sistency between this Circular and a Treasury
regulation or other operating circular issued
by this Reserve Bank regarding collateral
held by this Reserve Bank as custodian, such
Treasury regulation or other operating
circular shall govern.Title 31 CFR Part 202
incorporates by reference the terms of this
Circular and provides that the terms of this
Circular are binding on financial institutions
electing to serve as Depositaries and
Financial Agents of the Federal Government.
1.6 Each Federal Reserve Bank has issued
an operating circular identical to this Circular.
2.0 PURPOSES FOR
WHICH COLLATERAL
MAY BE HELD
This Reserve Bank holds collateral as
custodian for the following purposes:
2.1 Pledged to this Reserve Bank or
another Federal Reserve Bank to secure
repayment of an advance made to the
Pledgor or to secure repayment of any other
indebtedness (including intraday or
overnight overdrafts and any penalties and
fees thereon) of the Pledgor to a Federal
Reserve Bank. See this Reserve Bank's
Operating Circular 10.
2.2 Pledged to secure a deposit of funds
of a public entity (including a state, munici-
pality or other political subdivision). See
this Reserve Bank's Operating Circular 7
and Appendix C thereto.
2.3 Pledged to a public official to qualify
an institution to exercise trust powers. See
this Reserve Bank's Operating Circular 7
and Appendix C thereto.
2.4 Pledged to secure bankruptcy funds
on deposit with the Pledgor pursuant to 11
U.S.C. §345 and 31 CFR Parts 225 (formerly
Treasury Circular 154) and 380, each as
amended from time to time.
2.5 Pledged to secure balances held by
the Pledgor in aTreasury Tax and Loan
account pursuant to 31 CFR Parts 203
(formerly Treasury Circular 92) and 380, as
amended from time to time. See this
Reserve Bank's Operating Circular 9.
Operating
Circular
8
2.6 Pledged as security in lieu of a surety
or sureties on a penal or other bond pursuant
to 31 CFR Parts 225 (formerly Treasury
Circular 154) and 380, as amended from
time to time.
2.7 Pledged to secure revenues and funds
of the United States and funds the deposit
of which is subject to the control or regula-
tion of the United States or any of its officers,
agents or employees, held by the Pledgor
pursuant to 31 CFR Parts 202 (formerly
Treasury Circular 176) and 380, as amended
from time to time.
2.8 Pledged for such other purposes as this
Reserve Bank or the Secretary may designate.
3.0 DEFINITIONS
For purposes of Sections 4 and 5 of this
Circular, the following definitions apply:
3.1 "Collateral" means the property,
including securities in definitive form only,
in which the Pledgor has granted a security
interest to the Pledgee.
3.2 "National Customer Service Area"
means the centralized collateral monitoring
and customer service area at the Federal
Reserve Bank of St. Louis (FRB St. Louis).
In this regard, FRB St. Louis acts as a fiscal
agent of the United States.
3.3 "Pledgee" means the United States or
another entity to which Collateral is pledged.
3.4 "Pledgor" means an entity that
has pledged Collateral held in a Restricted
Account.
3.5 "Restricted Account" means an
account at a Federal Reserve Bank (i) used
to hold Collateral; or (ii) in which is
recorded the receipt of an advice of custody
evidencing that Collateral is held by or for
the Pledgor subject to the security interest
of the Pledgee.
4.0 TERMS
4.1 The following provisions set forth
terms pursuant to which this Reserve Bank
holds Collateral in a Restricted Account for
the purposes specified in Subsections 2.4,
2.5, 2.6, 2.7 and 2.8 of this Circular.
Additional terms, as set forth in Treasury
regulations and related documentation avail-
able from this Reserve Bank, may also apply.
4.2 The Pledgor warrants and agrees that:
(a) it is authorized under its charter and
bylaws or similar chartering documents
and under the laws of its chartering
authority to grant to the Pledgee the
security interest in the Collateral, and
such grant of the security interest does
not and will not violate the terms of
any lien or pledge agreement, any other
agreement or any law, regulation, instru-
ment, judgment or decree binding on
the Pledgor or the Collateral;
(b) it is authorized under its charter and
bylaws or similar chartering documents
and under the laws of its chartering
authority to accept and agree to be
bound by this Circular, and such
acceptance and agreement does not and
will not violate the terms of any other
agreement or applicable law;
(c) it has sufficient rights in the Collateral
to grant to the Pledgee the security
interest in the Collateral and, as of the
time of the grant to the Pledgee of the
security interest, and except as to inter-
ests Pledgor identifies in writing to this
Reserve Bank at that time, each part of
the Collateral is free and clear from any
other assignment, security interest,
pledge, lien or encumbrance, including
any financing statement or other docu-
ment filed in any public office, that is
superior to the claim of the Pledgee;
and thereafter the Pledgor will not
assign, pledge, encumber or otherwise
transfer any interest in, nor create or
suffer the creation of any lien against,
any of the Collateral without the prior
written approval of the Pledgee or its
fiscal agent;
Operating
Circular
8
(d) Collateral may be used to satisfy any
claim which the Pledgee has against the
Pledgor;
(e) it will duly execute and deliver financing
statements and such instruments and
documents, and do such acts and things,
as the Pledgee or its fiscal agent may at
any time reasonably request in order to
enforce, perfect and protect its security
interest in the Collateral and its rights
and remedies with respect to the
Collateral, and upon the request of the
Pledgee or this Reserve Bank, it will
promptly reimburse the Pledgee or this
Reserve Bank for any expense incurred
with respect to any item of Collateral,
including perfecting or maintaining
perfection of the Pledgee's security
interest, and assembling, transporting,
safekeeping, managing, inspecting, or
liquidating Collateral whether it is held
by the Pledgee, this Reserve Bank, a
third -party custodian, or the Pledgor;
(f) the information regarding the Collateral
contained in all forms or other statements
given to the Pledgee is true and complete,
and the Pledgor will immediately notify
this Reserve Bank of any change in
such information;
(g) it will allow the Pledgee or this Reserve
Bank to inspect all records of the Pledgor
relating to the Collateral and to make
and take away copies of such records; and
(h) it will promptly notify this Reserve
Bank of any claim, action or proceeding
affecting title to any portion of the
Collateral, and, at the request of the
Pledgee or this Reserve Bank, appear in
and defend, at the Pledgor`s expense,
any such action or proceeding.
4.3 If the Pledgor fails to perform any
covenant, duty or agreement in accordance
with its terms, the Pledgee or this Reserve
Bank may, but shall not be obligated to,
perform or attempt to perform such
covenant, duty or agreement on behalf of
the Pledgor, and any amount expended by
the Pledgee or this Reserve Bank in such
performance or attempted performance
shall at the request of the Pledgee or this
Reserve Bank be promptly reimbursed by
the Pledgor.
4.4 Regarding the shipment of Collateral:
(a) The Pledgor bears the entire risk of loss
of or damage to Collateral in transit to
and from this Reserve Bank.
(b) This Reserve Bank does not maintain
insurance on shipments of Collateral
which it makes except for limited mail
insurance on shipments of Collateral
consisting of securities that are transfer-
able by delivery, at values determined by
this Reserve Bank and at the expense of
the party on whose behalf the shipment
is made.This Reserve Bank does not
maintain insurance on Collateral which
it or another custodian holds.
(c) All postage, insurance costs and other
out-of-pocket expenses incurred by this
Reserve Bank in the shipment of
Collateral on behalf of a party will be
the responsibility of that party. The
party on whose behalf expenses are
incurred by this Reserve Bank authorizes
this Reserve Bank to debit such parry's,
or its designated correspondent's,
account for all such expenses.
4.5 This Reserve Bank assumes no liability
hereunder except for its performance of the
obligations provided in this Circular.This
Reserve Bank is responsible only for the
exercise of that degree of care with respect
to the Collateral in its custody as it exercises
with respect to its own property The Pledgor
indemnifies this Reserve Bank for any claims
of other parties with respect to Collateral
held by this Reserve Bank as custodian.
4.6 Unless otherwise agreed in writing,
this Reserve Bank is not obligated to perform
or not perform any act with respect to
Collateral. In particular, but not exclusively,
this Reserve Bank has no obligation to:
(a) act as escrow agent or in any other
capacity not expressly provided for in
this Circular;
(b) determine the validity of the pledge of
Collateral by the Pledgor to the
Operating
Circular
8
Pledgee, including whether any required
bond, pledge or security agreement has
been executed;
(c) pay assessments as provided under state
or local law; or
(d) inquire into the existence or continu-
ance of the powers or authority of a
public official who is the Pledgee or is
acting on behalf of the Pledgee or the
successors in office to any person
represented to the Reserve Bank as
authorized to act on behalf of the
Pledgee. However, the Reserve Bank
may require a certificate from the proper
authority showing that the public official,
or any person represented to the
Reserve Bank as authorized to act on
behalf of the Pledgee, is and continues
to be so authorized.
5.0 NATIONAL COLLATERAL
MONITORING &
CUSTOMER SERVICE
FOR CERTAIN
TREASURY PROGRAMS
The National Customer Service Area
("NCSA") monitors Collateral pledged
under theTreasury,Tax and Loan ("TT&L")
program (see 31 CFR Parts 203 and 380
and Federal Reserve Bank Operating
Circular 9) and Collateral pledged under 31
CFR Parts 202 (the Circular 176 program)
and 380. Collateral pledged to secure funds
under these programs is held by the
Pledgor's local Federal Reserve Bank (i.e.,
this Reserve Bank), which acts as fiscal
agent of the United States. A financial insti-
tution that desires to serve as a Depositary
and Financial Agent of the Federal
Government within the meaning of 31
CFR Part 202 must submit to the NCSA a
properly executed Depositary, Financial
Agency, and Collateral Agreement
(Appendix A) and Resolution Authorizing
Execution of the Depositary, Financial Agency,
and Collateral Agreement (Appendix B).
The Treasury may direct the NCSA to
assume centralized monitoring and customer
service responsibilities for Collateral pledged
for other purposes (e.g., 31 CFR Parts 225
(the Circular 154 program) and 380) .
5.1 Amount to be Collateralized
under 31 CFR Parts 202 (Circular 176)
and 380. For Collateral pledged under 31
CFR Parts 202 and 380, the Pledgee will
notify the NCSA of the amount a Pledgor
must collateralize.The NCSA will provide
the Pledgee monthly statements reflecting
the amount to be collateralized by each
Piedgor and the actual Collateral value pledged.
The NCSA will release excess Collateral upon
the Pledgor's request, but will not release
Collateral or proceeds if it would result in a
Collateral deficiency or if the Collateral is
needed for otherTreasury purposes.
5.2 Collateral Value Monitoring.
The NCSA will monitor the total value
of Collateral pledged under these Treasury
programs throughout the day based upon
information provided by the Federal
Reserve System's National Book -Entry
System (NBEST"') and Definitive
Safekeeping System (DSS). For most
purposes the NCSA will be the service
contact point for Pledgees and Pledgors.
6.0 RIGHT TO AMEND
This Reserve Bank may amend this Circular
at any time without advance notice.
APPENDIX A
DEPOSITARY, FINANCIAL AGENCY, AND COLLATERAL AGREEMENT
KNOW ALL PERSONS BY THESE PRESENTS:
THAT, WHEREAS, the undersigned, a Depositary and Financial Agent of the Government under
the general designation provided in 31 CFR Part 202 (formerly Treasury Circular 176) , desires to be
authorized by the Secretary of the Treasury to perform certain banking services requested by a
Government agency; and
WHEREAS, such authorization requires, and is contingent upon, the execution by the undersigned of a "Depositary,
Financial Agency, and Collateral Agreement" in such form as the Secretary of the Treasury shall prescribe, and the
giving of satisfactory security, by the pledge of collateral or otherwise, in accordance therewith.
NOW,THEREFORE, in consideration of the foregoing facts, the undersigned agrees as follows:
1. THE UNDERSIGNED HEREBY AGREES to perform such banking services for the Government
(including, but not by way of limitation, any agency or corporation owned or controlled by the
Government, and any officer, agent, or employee thereof while acting in his official capacity), and faith-
fully discharge such duties, as may now or hereafter from time to time be required by the Secretary of
the Treasury in accordance with 31 CFR Parts 202 and 380, other Treasury instructions, and the Federal
Reserve Banks' Operating Circular 8.
THE UNDERSIGNED FURTHER AGREES, for the purpose of insuring and guaranteeing the
faithful performance of all such services and discharge of all such duties, to pledge and at all times while
designated as above set forth, maintain the pledge of collateral security of the classes described, and under
the terms and conditions set forth, in 31 CFR Parts 202 and 380, other Treasury instructions, and the
Federal Reserve Banks' Operating Circular 8, which collateral security shall be in such amount as may
from time to time be required by the Secretary of the Treasury, and such collateral, and any addition
thereto or substitution therefore, shall be deposited with the Treasurer of the United States or with any
Federal Reserve Bank or Branch thereof acting as fiscal agent of the United States, as authorized or
designated by the Secretary of the Treasury.
THE UNDERSIGNED FURTHER AGREES that, in the event of its failure to pay, when due, the
whole or any part of the funds deposited with the undersigned, or in the event of the failure for any
reason of the Government or other appropriate person or organization to receive promptly funds to be
transmitted or otherwise handled by the undersigned in the performance of its duties as a Depositary
and Financial Agent of the Government, or in the event that the undersigned shall otherwise violate or
fail to perform any of the terms of this agreement, or in the event of the insolvency of the undersigned,
or the undersigned shall be closed for business by law or by proper corporate action, or in the event that
a receiver, or conservator, or liquidator or any other officer shall be appointed for the purpose of termi-
nating the business of the undersigned, the Secretary of the Treasury, without prior notice or demand,
through such agents as he may designate for the purpose, may forthwith redeem or sell the pledged
collateral, and any addition thereto or substitution therefore, or any part thereof, at either public or
private sale or sales, and apply the proceeds of such redemption or sale or sales, after deducting all
necessary or proper expense of such redemption or sale or sales, to the payment of funds deposited with
the undersigned or the repayment of funds received by the undersigned for transmission or handling, or
both, or any other indebtedness of the undersigned to the Government by reason of the above -mentioned
authorization, any surplus remaining from the proceeds of the redemption or sale or sales of such securities
after payment or repayment in full has been made, to be paid to the undersigned.
THE UNDERSIGNED FURTHER AGREES to be bound by (1) the provisions of the equal
employment opportunity clause set forth in Section 202 of Executive Order No.11246 (42 U.S.C.
2000e note), as amended by Executive Order 11375, and the regulations issued pursuant thereto (41
CFR Chapter 60 and 10-12.8) in the manner and to the same extent as if their provisions were set forth
herein, and certifies that it does not maintain or provide for employees any facilities which are segregated
on the basis of race, creed, color, or national origin at the main office or any branch office; and (2) the
provisions of the General Services Administration regulations for the promotion of employment of
disabled and Vietnam era veterans (41 CFR Subpart 1-12.11), in the same manner and to the same
extent as if their provisions were set forth herein.
The provisions set forth in this Depositary, Financial Agency, and Collateral
Agreement are supplemented by 31 CFR Parts 202 and 380, other Treasury instructions, and the Federal
Reserve Banks' Operating Circular 8.
IN WITNESS WHEREOF, the undersigned has caused the signature of ifsofficer meted and Its
corporate seal duly attested to be affixed hereto this day of
intending to be legally bonded hereby.
Name of Bank, City, State
Bank ABA/RTN #
By;
Signature &Title of Officer ExecutingAgreeme
Attest:
Signature & Title
FMS FORM 5903
DEPARTMENT OF THE TREASURY
FINANCIAL MANAGEMENT SERVICE
(SEAL)
APPENDIX B
RESOLUTION AUTHORIZING EXECUTION OF
DEPOSITARY, FINANCIAL. AGENCY, AND COLLATERAL AGREEMENT
THIS IS TO CERTIFY, that at a meeting of the Board of Directors of
held on , 20 , the
following resolution was duly adopted:
1. "RESOLVED, that the President, or any Vice President, or Cashier, of this bank is hereby authorized to
execute on behalf of this bank the 'Depositary, Financial Agency, and Collateral Agreement', such
execution to be under seal and with the attestation of an officer of this bank other than an officer executing
the Agreement."
2. "RESOLVED FURTHER, that any of such officers of this bank is authorized to execute in similar
form on behalf of this bank such agreements to supplement, amend, or modify the terms of such
'Depositary, Financial Agency, and Collateral Agreement' as may from time to time be ro".ted or
approved by the Secretary of the Treasury."
3. "RESOLVED FURTHER, that the
(Desliq ace one or more officers, as ded ed, by title or rye-)
of this bank , and each of them severally, are hereby authorized) and directed, from time to time, to
deposit collateral security at the place designated by the Secretary of the Treasury of the United States in
such amounts, of such classes, and at such times as may be required by the Secretary of the Treasury, pur-
suant to the terms and conditions of the 'Depositary, Financial Agency, and Collateral Agreement'
referred to herein above, 31 CFR Parts 202 and 380, otherTreasury instructions, and the Federal
Reserve Banks' Operating Circular 8, to be held for the purposes set forth in, and subject to all the terms
of such'Depositary, Financial Agency, and Collateral Agreement', and that the said officers are further
authorized to withdraw any or all of the collateral so deposited, subject to prior approval of the Secretary
of the Treasury or a Federal Reserve Bank acting as fiscal agent, and further, to make substitutions and
exchanges in the said collate, rsuch times as they may deem necessary, subject to approval of the
Secretary of the Treasury oWowes "
4. "RESOLVED FURTHEP. beat
are h 4uthorized jointly or severally to sell, assign, and transfer any or all United States or other
bonds which may be. Vdthdrawn under authority of the foregoing resolution, and to appoint one or
more attorneys for that purpose, hereby revoking any previous authorization with respect to the bonds
described hereirt, but not derogating from any previous authorization with respect to any other bonds."
5. "RESOLVED FURTHER, that nothing contained in this resolution shall be deemed to affect any
authority heretofore granted with respect to two percent Depositary Bonds by any resolution adopted or
any revision thereof, or to render unnecessary the adoption of such resolution in connection with
subscriptions for such bonds.
Certified By:
Signature Date (SEAL)
Type or Print Name & Title of Certifying Officer
*The officer certifying this resolution shall have such authority and shall not be designated under num-
bered paragraph 3 hereof,
FMS FORM 5902
DEPARTMENT OF THE TREASURY
FINANCIAL MANAGEMENT SERVICE