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HomeMy WebLinkAboutResolution - 819 - Designation Of Depository & Contract - TCBNA - Custody Of Funds - 05_28_1981JCR:cl RESOLUTION I RESOLUTION NO. 819 - 5/28/,Sl t BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: TRAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Designation of Depository and Contract for the custody of the funds of the City of Lubbock, Texas, between Texas Commerce Bank National Association and the City of Lub- bock, Texas, attached herewith which shall be spread upon the minutes of the 4 Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 28th day of pay ,1981. � e,.,;Jj BILL cALI ER, MAYOR ATTEST: Evelyn Ga a,3it c tary-Treasurer Lam' � , APPRO D AS TO FORM: C. Ross, Jr., City Attorney RESOLUTION NO. 819-5/28/81 DESIGNATION OF DEPOSITORY L�'1) AND CONTRACT FOR THE CUSTODY OF THE FUNDS OF THE CITY OF LUBBOCK, TEXAS THE STATE OF TEXAS § COUNTY OF LUBBOCK § THIS CONTRACT made and entered into on this the 28th day of May, 1981, by and between TEXAS COMMERCE BANK NATIONAL ASSOCIATION, LUBBOCK, TEXAS, a National Banking Corporation, acting by and through its duly authorized officers (herein- after referred to as Bank), and THE CITY OF LUBBOCK, a Home Rule Municipal Corporation, chartered under the laws of the State of Texas, with its domicile in Lubbock County, Texas, acting herein by and through its duly authorized officers, (hereinafter referred to as City): WITNESSETH: The governing body of the City of Lubbock does hereby designate the Bank as Depository of the City funds and the City of Lubbock has deposited, and will deposit from time to time funds of such City with Bank and Bank does hereby agree to accept such deposit or deposits; and such deposits shall be made on the following terms and conditions: I. The term of this Contract shall be two (2) years commencing on the 31st day of May 1981, and ending on the 31st day of May 1983. However, both parties to this agreement shall meet on or before April 1, 1982, and if this agreement is extended as hereinafter provided the parties shall meet on or before April 1st, of each succeeding year for the purposes of renegotiating the terms set forth in Exhibit A attached hereto and made a part hereof for all purposes. If both parties agree to the terms in Exhibit A as renegotiated, then in such event there shall be added automatically a one (1) year extension to the full remaining term of this contract. If both parties agree to renegotiate the terms in Exhibit A as hereivabove provided and the parties come to an agreement on such terms, such agreement shall be reduced to writing marked Exhibit A and such renegotiated Exhibit A shall be dated, executed by both parties, and attached to this contract and shall then supersede the original or former Exhibit A. However, it is agreed between the parties that any such renegotiation of Exhibit A shall be for the years subsequent to May 31, 1983 it being the intention of the parties hereto that the original Exhibit A attached hereto shall be effective from the 31st day of May, 1981 until the 31st day of May, 1983. If both parties hereto at anytime fail to agree on the terms to be, contained in Exhibit A, as renegotiated then in such event the remaining year on the original contract or the remaining year on the contract as extended shall be discharged by both parties hereto and thereafter the obligations of both parties under this agreement shall cease and this agreement shall terminate. II. All funds deposited with the Texas Commerce Bank National Association, Lubbock, Texas by the City of Lubbock will be secured by pledge of United States Bonds, Certificates of Indebtedness of the United States, Treasury Notes of the United States, and other evidence of indebtedness of the United States which are guaranteed as to both principal and interest by the United States Government, bonds of the State of Texas, or any county, city, town, independent school district, common school district or other school districts, in the State of Texas, or bonds issued under the Federal Farm Loan Act, or road districts, bonds, pledges or other evidences of indebtedness issued by the Board of Re- gents of the University of Texas, notes or bonds secured by mortgages insured and debentures issued by the Federal Housing Administrator of the United States Government; in shares or share accounts of any building and loan association organized under the laws of this state, provided the payment of such shares or share accounts is insured by the Federal Savings and Loan Insurance Corpora- tion, and in the shares or share accounts of any Federal Savings and Loan Association domiciled in this state, provided the payment of such shares or share accounts is insured by the Federal Savings and Loan Insurance Corpora- tion; bank acceptances of banks having a capital stock of not less than Five Hundred Thousand ($500,000.00) Dollars, and bonds issued by municipal corpora- tions in Texas. All securities pledged shall be direct obligations having a par value or market value when less than par, exclusive of accrued interest, at all times at least equal to the total amount of money on deposit in said several funds on deposit in the depository. Such securities so pledged shall be approved as to kind and value by the governing body of the City of Lubbock. The Bank hereby agrees to pay to the City interest on time deposits with the Bank held in the form of certificates of deposit with minimum and maximum maturity from the date of issuance to date of maturity of 30 days and 182 days, respectively, at the rate set forth in Exhibit A. Interest payable to the City pursuant hereto shall be simple interest calculated on the basis of a 365 day year and shall be paid upon the maturity of such certificates of deposit. IV. Bank will honor all overdrafts of the City to an amount not exceeding three million dollars and Bank may elect to honor overdrafts exceeding three million dollars. Bank will charge City a rate of interest, as set forth in Exhibit A attached hereto and made a part hereof, for handling any and all overdrafts. Overdrafts will be considered temporary, unless they exceed ten (10) calendar days, at which time the overdrafts will be cleared. V. Loans, when requested by City, will be made to City to an amount not to exceed three million dollars. On any loan in excess of three million dollars Bank shall have full discretion on whether or not to grant such loan and will notify City as soon as possible of its decision in this regard. Loans are to be direct indebtedness of the City of Lubbock, to be made within each fiscal year of the City. This is not intended for long term indebt- edness. Bank will charge City interest on all loans as set forth in Exhibit A attached hereto and made a part hereof. VI. For and in consideration of the agreements contained in Exhibit A, Bank will furnish to City all necessary and customary banking services including, by way of illustration but not limitation of the following: 1. Bank will handle all foreign and domestic exchange for the City. 2. Bank will furnish to City wire transfer service to any point in the United States. 3. Bank parking lot facilities which are immediately adjacent to Bank building will be available for the use by the City in its transaction of banking business. 4. Bank agrees to furnish sufficient safe deposit boxes in the Bank vault to provide for the needs and demands of the City. 5. Bank agrees to furnish coin wrappers, night depository services including bags and keys, Travelers' and Cashiers' checks and also furnish, on request, a daily balance on each account maintained by City in Bank. 6. Bank will furnish City a detailed monthly statement of outstanding Certificates of Deposit as of the last business day. 7. Bank will furnish City a detailed monthly statement of other outstand- ing investments handled by Bank as of the last business day. 8. Bank will furnish City a detailed monthly statement of securities pledged against City deposits as of the last business day with an aggregate total of the pledged amount. 9. Bank will deliver to City monthly bank statements on all demand accounts maintained by City with Bank. VII. The City will have the right to place any amount of its funds in any demand account or accounts maintained by City with Bank and Bank agrees to accept any amount of City funds placed in said demand deposits. lIlMOM Bank and City agree that Bank shall have the right of first refusal on all time deposits of City and if Bank refuses to accept any such time deposit tendered to it by City, then in such event City will be free to invest such funds in any lawful manner except City will not place such funds with another depository bank. In the event City is required to deposit its time deposits elsewhere than in'Bank then in such event Bank will assist City in making such investments in an effort to obtain the best possible return on such investment for City. It is agreed by the parties hereto all time deposits or certificates of deposit which have not elapsed on the termination date of this depository contract, shall remain on deposit with the same depository under the same terms and conditions in effect during said contract until the date such time deposits have elapsed. IX. Notwithstanding anything to the contrary contained in this agreement the City will be at all times free to forward funds to any bank which is serving as a paying agent for the City on bonds issued by the City. X. This agreement is made subject to the statutes of the Congress of the United States and the State of Texas and subject to the rules and regulations promulgated by the Office of the Comptroller of the Currency of the United States, the Board of Governors of the Federal Reserve System, and the Board of Directors of the Federal Deposit Insurance Corporation, as are now in existence and such other statutes, rules and regulations of these entities as may here- after become effective during the term of this agreement; and if this agree- ment should be or become in conflict with such statutes, rules and regulations then such statutes, rules and regulations shall control to the extent they are in conflict with this agreement. EXECUTED THIS TEXAS CC LUBBOCK, TOMMIE STEVENS, PRES115ENT and CHIEF OPERATIONS OFFICER ATTEST: OFE NS OFFICE? _ day of May 1981. THE CITY OF LUBBOCK BI Mc IST R, MAYOR THE STATE OF TEXAS § COUNTY OF LUBBOCK § ATTEST: Evelyn Gafga //Pr' City Secretary-Treasurver APPROVE AS TO FORM: Q c. ohn C. Ross, Jr., City Attorney BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared BILL McALISTER, known to me to be the person whose name is subscribed to the foregoing instrument and ac- knowledged to me that he executed the same as the act and deed of the City of Lubbock and as Mayor, for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of/�, 1981. Notary Public Lubbock County, Texas My Commission Expires THE STATE OF TEXAS COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared TOMMIE STEVENS, known to me to be the person whose name is subscribed to the foregoing instrument and ac- knowledged to me that he executed the same as the act and deed of the Texas Commerce Bank National Association, Lubbock, Texas and as President, for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY BAND AND SEAL OF OFFICE this 0q— day of Gj'�F' 1981. ary Public bbock County, Texas My Commission Expires EXHIBIT A 1. Rate of Interest on Certificates of Deposit (a) The Bank will pay the City interest on certificates of deposit at a rate equal to the yield rates for United States Treasury Bills of like maturities, or nearest maturity, as published in the Wall Street Journal on the date of the purchase of the certificates of deposit. (b) If the United States Treasury Bill Yield rate as set out in paragraph (a) above is less than 9%, the lower of 9% or such United States Treasury Bill Yield rate plus .25(14%) will be paid by Bank. (c) In no event shall the Bank pay to the City for its Certificates of Deposit less than the rate that the Bank is paying on its regular passbook savings accounts at the time the City purchases said Certificates of Deposit. 2. Minimum Monthly Balances for Demand Deposits For services rendered by it to the City pursuant to the Contract, the City agrees to maintain minimum monthly average daily balances in demand deposits with the Bank during the term of this Contract in an amount equal to the following: minus overage dollar amount $150,000.00 or times 12 plus deficiency dollar amount Average 30-day Treasury Bill Yield divided by Investable percentage of collected demand deposits equals minimum monthly average balance The terms used in the foregoing formula shall have the following meaning: (a) "30-day Treasury Bill Yield"- The average yield for 30-day United States Treasury Bills during the month preceding the month for which such calculation is made as published in the Wall Street Journal. (b) "Investable Percentage of Collected Demand Deposits" - 100% less the percentage of cash reserves required of Bank under law for demand deposit accounts. (c) "Overage Dollar Amount" - Actual average monthly collected balance from previous month minus minimum monthly average daily balance required from previous month times 30-day Treasury Bill Yield divided by twelve. (d) "Deficiency Dollar Amount" - Minimum monthly average daily balance required from previous month minus actual average monthly collected balance from previous month times 30-day Treasury Bill Yield divided by twelve. (e) "Minimum Monthly Average Daily Balance" - The minimum monthly average collected daily balance agreed upon by the City and Bank, at the end of each month to be effective the next calendar month. Should the City fail to maintain the minimum monthly average daily balances of demand deposits determined herein above, the Bank may elect for the City to compensate the Bank for such deficiency by paying to the Bank interest on the deficiency at the same rate as that for a short term loan as defined in Section 4 of this Exhibit. 3. Rate of Interest on Overdrafts The City agrees to pay the Bank interest at a rate equal to 75% of Texas Commerce Bank, N.A., Lubbock, Texas prime rate, not to exceed the maximum permitted by law on all overdrafts on demand deposit accounts. 4. Rate of Interest on Short -Term Loans The City agrees to pay the Bank interest at a rate equal to 75% of Texas Commerce Bank, N.A., Lubbock, Texas prime rate, not to exceed the maximum rate permitted by law on all short-term loans of the Bank to the City. 5. This Exhibit A is the Original Exhibit A agreed to by the parties and takes effect on the date of execution of the Contract to which it is attached.