HomeMy WebLinkAboutResolution - 2002-R0288 - Collateral Agreement With American State Bank - 07_23_2002Resolution No. 2002-RO288
July 23, 2002
Item No. 6
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to
execute for and on behalf of the City of Lubbock a temporary depository Collateral
Agreement with American State Bank under the same terms and conditions as the
existing depository contract for a term of not more than six (6) months, a copy of which
temporary Collateral Agreement shall be spread upon the minutes of the Council and as
spread upon the minutes of this Council shall constitute and be a part of this Resolution
as if copied herein in detail.
Passed by the City Council this 23rd day of July , 2002.
ATTEST:
Rebecca Garza, City Secretary
W=a0
Beverly Hodges; lylalfaging Dgtor of Finance
APPROVED AS TO
D,cnfald G. Vandi,7er, First Assistant City
Attorney
DDres/ASBcon.res
July 11, 2002
Resolution No. 2002—R0288
COLLATERAL AGREEMENT July 23, 2002
Item No. 6
I.
The term of the Agreement shall be six (6) months commencing on the 1st day of August 2002 and
ending on the 31" day of January 2003.
II.
As security for the deposits of the City, the Bank shall pledge to the City a surety bond or securities equal
to the total of all balances the City maintains in the Bank, less applicable FDIC Insurance Coverage. Certificates
of Deposit and other evidences of deposit shall be collateralized at 105% of market or par, whichever is lower.
The securities pledged must satisfy the requirement of Chapter 105 of the local government code.
The City will accept as collateral for its certificates of deposit and demand deposits those items identified
as eligible collateral for municipal depositories as outlined in Chapter 105 of the local government code. The City
must approve all securities pledged. Any state or local government bonds pledged must have a rating of at least
A or Al or better by Moody's Investor Services or Standard & Poor's Corporation. The City reserves the right to
accept or not to accept the securities to be pledged as collateral.
These items constitute the only acceptable means of collateralizing the City's deposits. Collateral
securities will be owned outright by the pledging financial institution.
American State Bank shall provide the City a monthly statement of securities pledged as collateral due
ten (10) working days after the close of a calendar month. This securities statement shall reflect total securities
itemized by the following:
Name
Type/Description/Cusip Number
Par Value
Current Market Value
Maturity Date
Moody's or Standard & Poor's Rating (both if available)
The Bank shall provide quarterly reports of income/condition (required by FDIC) due the 10th day
following the reporting deadline for each quarter.
Either the City or the 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.
Executed this 23rd day of July ,2002 under the provisions of FIRREA by the undersigned duly
authorized officers of the parties hereto.
AMERICAN STATE BANK: CITY OF LUBBOCK:
MIKE EPPS, EXECUTIVE V E 1,3NESIDENT
ATTEST:
Title: Uk,(
Rebec a Garza, City Secretary Ic-
Collateral Agreement — American State Bank Page 1 of 2
AS TO CONTENT:
Managing Oirecylor of
APPROVED AS TO F0IW---
Ilk-
Y .
Don Vandive ,
Assistant City Attorney
Collateral Agreement — American State Bank Page 2 of 2