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HomeMy WebLinkAboutResolution - 1439 - Contract - TCBNA - Depository Services - 07/28/1983RESOLUTION 1439 - 7/28/83 DGV : j s RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: .THAT the Mayor of the CityM 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 the City of Lubbock and Texas Commerce Bank National Association, Lubbock, Texas attached herewith which 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 fully copied herein in detail. Passed by the City Council this 28th day of July , 1983. E. .TACK BROWN, MAYOR PRO TEMPORE ATTEST: Evelyn Gaf ga, City ec a ry-Treasurer APPROVED AS TO FORM: 0 G. Vandiver,--issis-ant City A RESOLUTION 1439'- 7/281 DESIGNATION OF DEPOSITORY 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 July, 1983, by and between TEXAS COMMERCE BANK NATIONAL ASSOCIA- TION, LUBBOCK, TEXAS, a National Banking Corporation, acting by and through its duly authorized officers (hereinafter referred to as Bank), and THE CITY OF LUBBOCK, a Home Rule Municipal Corpora- tion, 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 desig- nate 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 lst day of June, 1984, and ending on the 31st day of May, 1986. However, both parties to this agreement shall meet on or before April 1, 1985, and if this agreement is extended as here- inafter 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 renego- tiated, 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 of Exhibit A as hereinabove provided and the parties come to an agreement on such terms, such agreement shall be reduced to writing marked Ex- hibit 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, 1986 it being the intention of the parties hereto that the original Exhibit A attached hereto shall be effective from the 1st day of June, 1984 until the 31st day of May, 1986. 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 Texas Commerce Bank National Asso- ciation, Lubbock, Texas, by the City of Lubbock will be secured in accordance with the provisions of Vernon's Ann.Civ.Stat., Art. 2560, Sec. d. Such securities so pledged shall be approved as.to kind and value by the governing body of the City of Lubbock. III. Bank will honor all overdrafts of the City to an amount not exceeding three million dollars and Bank may elect to honor over- drafts 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. Over- drafts will be considered temporary, unless they exceed then (10) calendar days, at which time the overdrafts will be cleared. Iv. 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 in- tended for long term indebtedness. Bank will charge City interest on all loans as set forth in Exhibit A attached hereto and made a part hereof. V. For and in consideration of the agreements contained in Ex- hibit A, Bank will furnish to City all necessary and customary banking services including, by way of illustration but not limi- tation 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 adja- cent 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,Ci.ty a detailed monthly statement of other outstanding 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. 10. Bank will furnish Direct paycheck Deposit System, in order that City employees may direct deposit paychecks, if desired, into the bank of their choosing. 11. Bank agrees to act as paying agent without charge on any and all bonds now existing.or hereafter issued by the City. 12. Bank agrees to service all bonds and coupons as paying agent for the City without charge. 13. Bank will furnish daily balance of each account, including total collected balance, at the endofeach day. VI. 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. VII. The City will have the right to invest any amount of its funds in the Bank at a rate set forth in Exhibit A or in any other financial institution or investment in which the City is legally authorized to invest. VIZI. It is agreed by the parties hereto all time deposits or cer- tificates 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 stat- utes, rules and regulations of these entities as may hereafter be- come effective during the term of this agreement; and if this agreement 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 agree - went. EXECUTED THIS THE 28th day of July 1983. TEXAS C RCE NATIONAL THE CITY OF LUBBOCK ASSO U BOC T S TOMMIE STEVENS, PRESIDENT JACK BROWN and CHIEF OPERATIONS OFFICER MAYOR PRO TEMPORE ATTEST: CASHIER THE STATE OF TEXAS COUNTY OF LUBBOCK § ATTEST: Evelyn G-affga City Secretary-Treas er APPROVED AS TO FORM: Dona G. Van ver Assistant City Attorney BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared E. .TACK BROWN, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged 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 1983. Nota y Pu c Lubbo ck.County, Texas My C'iammission 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 acknowledged 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 HAND AND SEAL OF OFFICE this d day of 1983. oar bbock Public County, Texas � �WONN€ADKINS h My Commission Expires: EXHIBIT A 1. Demand Deposits For services rendered by it to the City pursuant to the contract, the City agrees to maintain an aggregate average minimum collected balance of $750,000.00 after required reserves. Should the City fail to maintain minimum aggregate average collected balanced, the Bank may elect for the City to com- pensate the Bank for such deficiency by paying to the Bank interest on the deficiency at the same rate as that for overdrafts as defined in Section 3 of this Exhibit. 2. Investment of Funds The Bank will pay on certificates of deposit at a rate of interest and terms to be negotiated at the time such cer- tificates of deposit are purchased by the City. 3. Rate of Interest on Overdrafts and Short-term Loans The City agrees to pay the Bank at a rate equal to 54% of the Texas Commerce Bank National Association, Lubbock, fluctuating prime rate, but such rate paid by City shall not exceed 15%. 4. 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.