HomeMy WebLinkAboutResolution - 1114 - Amendment To Contract-Texas Commerce Bank-City Funds Depository, Interest Rates - 05/27/1982DGV:cl
RESOLUTION 1114 - 5/27/82
See: Reso. 819, 5/28/81
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT 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 an
Amendment to the Designation of Depository and Contract for the Custody
of the Funds of the City of Lubbock, Texas, dated May 28, 1981, attached
herewith which shall be spread upon the minutes of the Council and as
spread upon the minutes of this Council sh11 constitute and be a part
of this Resolution as if fully copied here�n in detail.
Passed by the City Council this 27th daylof May ,1982.
ATTEST:
E elyn,G fga, City e r ry-Treasurer
APPROVED AS TO CONTENT:
Robert Massengale, FinaKce Director
APPROVED AS TO FORM:
d G. Vandiver, Assistant City At
r //w 1
, MAYOR
`
RESOLUTION 1114,,5/27/82
'. (See Reso 819, 5/28/81) CITYSECRETARY-TREASURER
• AMENDMENT EFFECTIVE JUNE 1, 1983 THROUGH MAY 31, 1984
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 r
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.
z
(d) "Deficiency Dollar Amount" i
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 demanddeposits 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. '...;
Y
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. The following Paragraph VIII replaces the existing Paragraph VIII.
VIII.
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 including time deposits with -other banks,within the
City of Lubbock. 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
investment for City, except time deposits with any other bank within the City of
Lubbock.
•
6. This Exhibit "A" is agreeded to by the parties and takes effect on
June 1, 1983 and is subject to the terms and conditions of the contract to
which it is attached.
EXECUTED THIS THE 28th day of May , 1982
TEXAS COMMERCE BANK NATIONAL ASSOCIATION THE CITY OF LUBBOCK
LUBBOCK,
;4 Wom
TOMM STEV S, PRESIDENT AND CHIEF SM MCALISTER, MAY
OPERATING OFFICER
'ATTEST.�•.= ATTEST:
CASHIE Evelyn Gaffga
City Secretary-Treasurer
APPROVED AS TO FORM:
r
John C. Ross, Jr. City Attorney