HomeMy WebLinkAboutOrdinance - 528-1935 - Depository Of The City's Fund And Failed To Secure Any Bid To Pay Interest. - 01/10/1935.. COPY
OI-I0-1.9:35
ORDINANCE NO. 528
0~ -2-4-1935
WHEREAS the City has souqht in the proper manner for a hid for depository of
the City's Funds, and failed to secure any bid to pay interest ~n daily
balance, and the Citizens National Bank, Lubbock, Texas, has offered to
continue as depository for such funds and to secure the same vi-th legal securi-
ties, but pay no interest, therefore:
AN ORDINANCE accepting the offer to the Citizens National Bank, Luabbock ,
Texas to receipt, properly keep and account for the City's funds, and to
secure the same with collateral admissible under Chapt 3 of Title 47 of the
Revised Statute of Texas, and to permit the City to dispose of the collateral
on default; providinq for a contingence of there being enacted a state law
requiring a depository to pay interest, and declaringa An emergency account of
inability to secure a bid more satisfactory and to properly secure the funds.
BE IT ORDAINED BY THE CITY ca-!MISSION OF THE CITY OF LYBBOCr, TEXAS
Section 1. That the offer of the Citizens National Bank, Luabock,Texas, to
receive and account for all funds of the City, said Bank to accept negotiable
items subject to collection thru the regular channels; to pay all lawfully
issued demands on said funds, within the credit of tje City on deposit, to
keep the funds separate and to render statements as often as required; and to
deposit with the city lawfully issued securities admissible under Chapter 3
Title 47 of Revised Civil Statutes;with the right of the City to require at all
times wch security to equal in market value the funds with said Bank; and
the further right of the City to dispose of the collateral security to recoup
itself for any unpaid and unhonored lawful demands on it, be and the same is
accei-ted~
Section 2. That the foregoing agreement of depesit and security shall
be effective from this date for a period ending December 31, 1936.
Section 3. Provided: should there be enacted during the life of this
Ordinance a law requiring payment of interest on daily balaneesthe City shall
receive the Minimum rate durinq the remainder of the term.
Section 4. The fact that the time has elapsed within which another
depositary should have been selected, or the former contract renewed and the
desire of the City to be protected~ collateral, creates and emerqenoy and
public necessity that this ordinance be finally passed add enacted at the
meeting of its introduction, and it is so erdered.
Passed by unanimous vote of three fifths of the City Conmission, and approved
by the Mayor, this lOth '~day of January,. 1935, first reading.
Passed second reading this 24th day of January, 1935.
ATTEST:
City Secretary.