HomeMy WebLinkAboutOrdinance 1312
ORDINANCE NO. 1312
AN ORDINANCE REGULATING LETTERS OF CREDIT AND CERTIFICATES
OF DEPOSIT GIVEN THE CITY OF NORTH RICHLAND HILLS, TEXAS
WHEREAS, in certain instances the laws of the State and
Ordinances of the City permit persons, firms or corporations to
present letters of credit to the City to secure or guarantee
performance; and,
WHEREAS, the processing of letters of credit are an
expense to the City; and,
WHEREAS, certain letters of credit present problems which
are costly and cumbersome for the City to investigate.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the
City of North Richland Hills, Texas, that:
1.
Any letter of credit presented to the City of North Richland
Hills, Texas, must be drawn by or on a bank chartered by the State of
Texas or the United States of America. Such bank must be located
within fifty miles of the City.
2.
Any letter of credit must be accompanied by the latest
"Statement of Condition" issued by the bank in question.
3.
The letter of credit must be accompanied by a cash fee of
1% of the face amount of the letter of credit as a processing fee to
the City.
4.
In lieu of a letter of credit a certificate of deposit in
the name of the City of North Richland Hills will be accepted. Any
interest on the certificate of deposit will be credited to the person,
persons, or firm depositing same to the City. The certificate of
deposit must be from a bank or savings and loan association located
within fifty miles of the City.
5.
The City Manager, or a department head designated by
him, shall make the final determination as to whether or not the
letter of credit or certificate of deposit will be accepted by the
City. If any person is dissatisfied with the decision of the City
Manager said person may appeal the decision to the City Council.
PASSED AND APPROVED this
25th
day of November
1985.
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MAYOR
ATTEST:
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ji~y Secretary
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Attorney
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