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HomeMy WebLinkAboutResolution 1999-069 RESOLUTION NO. 99-69 WHEREAS, the City of North Richland Hills, Texas has advertised for and received bids (in the form of Requests for Proposals) for Bank Depository Contracts; and WHEREAS, three banks had submitted bids prior to the deadline of August 31, 1999 and such bids have been reviewed and analyzed by the Director of Finance and the City Manager; and WHEREAS, THE City Council finds that the bid of Bank of America, N.A. was the best bid and contained the most favorable terms for the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, that: 1. The City Manager be and is hereby authorized to execute the BANK DEPOSITORY CONTRACT (with Exhibits 1 - 9 attached thereto) between this City and Bank of America, N.A., as the act and deed of the City. PASSED AND APPROVED THIS 27th day of September 1999. APPROVED: ) C ATTEST: G¿l(;0t&a ~ Patricia Hutson - City Secretary APPROVED AS, c~ BANK DEPOSITORY CONTRACT This DEPOSITORY CONTRACT is made and entered into on the date last herein written by and between the CITY OF NORTH RICHLAND HILLS, hereinafter called "DEPOSITOR", and , a national banking association, organized under the laws of the United States and authorized by law to do banking business in TEXAS and now conducting such business in said STATE, hereinafter called "BANK", and is as follows: I. DEPOSITOR, through action of its governing Board, hereby designates BANK as a depository for the period beginning , and continuing through II. DEPOSITOR and BANK, by execution of this Depository Contract, hereby designate the Federal Reserve Bank, hereinafter called "TRUSTEE", to hold in trust, according to the terms and conditions of this Depository Contract and the attached "Federal Reserve Bank Operating Circular", the collateral and substitute collateral described under said agreements. III. During the term of this Depository Contract, the DEPOSITOR will, through appropriate action of its governing Board, designate the officer, or officers, who singly or jointly will be authorized to represent and act on behalf of the DEPOSITOR in any and all matters of every kind arising under this Depository Contract and to (a) execute and deliver to BANK an electronic fund or funds transfer agreement (and any addenda thereto), (b) appoint and designate, from time to time, a person or persons who may request withdrawals, orders for payment or transfers on behalf of DEPOSITOR in accordance with the electronic fund or funds transfer agreement and addenda and (c) make withdrawals or transfers by written instrument. IV. BANK'S Deposit Agreement is incorporated herein for all purposes; however, to the extent that any provision therein conflicts with any provision herein, this Depository Contract will control. V. DEPOSITOR may arrange for time deposits, and BANK may accept and shall hold such deposits subject to payment in accordance with the terms of the deposit. Interest shall be calculated at the rate which BANK has bid for the particular denomination and time period of said deposit at competitive public bidding for said deposits. Time deposits will mature on or before the expiration of this Depository Contract. All Time Deposits that mature beyond the expiration of this Depository Contract will be at non-contractual interest rates negotiated at the time of purchase. 1 VI. BANK will be compensated for any and all services rendered to DEPOSITOR under this Depository Contract. BANK agrees to offset monthly service fees against its customary earnings credit for balances in DEPOSITOR's non-interest bearing transaction accounts; provided, however, that if there is insufficient earnings credit against which such fees may be offset, DEPOSITOR will be charged for such services monthly. BANK's Application and Bid for Depository Services, including all exhibits and addenda thereto, is incorporated herein by reference. VII. All funds on deposit with BANK to the credit of the DEPOSITOR shall be secured by collateral as provided for in the Public Funds Collateral Act of 1989 (Chapter 2257 of the Texas Government Code). The total market value of the collateral (which includes accrued interest or income to the extent is not included in the market price) securing such deposits will be in an amount at least equal to the amount of such deposits plus the amount of any accrued interest thereon and less the amount that such deposits are insured by an agency or instrumentality of the United States government. The market value with respect to any securities (collateral) as of any date and priced on such date will be obtained from a primary dealer. When additional collateral is required to cover incremental deposits, BANK must receive the request for collateral prior to 10:30 a.m. on the day the deposits are actually received. Twenty-four hours notice is necessary on incremental deposits in excess of $3 million. VIII. BANK has heretofore or will immediately hereafter deliver to TRUSTEE collateral of the kind and character above mentioned of sufficient amount and market value to provide adequate collateral for the funds of DEPOSITOR deposited with BANK. Said collateral or substitute collateral, as hereinafter provided for, shall be kept and retained by TRUSTEE in trust so long as the depository relationship between DEPOSITOR and BANK shall exist hereunder, and thereafter so long as deposits made by DEPOSITOR with BANK hereunder, or any portion thereof, shall have not been properly paid out by BANK to DEPOSITOR or on its order. IX. TRUSTEE will accept said collateral and hold the same in trust for the purpose herein stated. See the attached "Federal Reserve Bank Operating Circular". X. Should BANK fail at any time to pay and satisfy, when due, any check, draft, or voucher lawfully drawn against any deposit and the interest on such deposits or in any manner breach its contract with DEPOSITOR, DEPOSITOR shall give written notice of such failure or breach to BANK, and BANK shall have three (3) business days to cure such failure or breach. In the event BANK shall fail to cure such failure or breach within three (3) business days or should the BANK be declared insolvent by a Federal bank regulatory agency, it shall be the duty of TRUSTEE, upon demand of DEPOSITOR (supported by proper evidence of any of the 2 above-listed circumstances), to surrender the above-described collateral to the DEPOSITOR. DEPOSITOR may sell all or any part of such collateral and out of the proceeds thereof, pay DEPOSITOR all damages and losses sustained by it, together with all expenses of any and every kind incurred by it on account of such failure or insolvency, or sale, accounting to BANK for the remainder, if any, of said proceeds or collateral remaining unsold. XI. Any sale of such collateral, or any part thereof, made by DEPOSITOR hereunder may be either at public or private sale; provided, however, it shall give to both TRUSTEE and BANK two (2) hours notice of the time and place where such sale shall take place, and such sale shall be to the highest bidder therefor for cash. DEPOSITOR and BANK shall have the right to bid at such sale. XII. If BANK shall desire to sell or otherwise dispose of anyone or more said securities so deposited with TRUSTEE, it may substitute for anyone or more of such securities other securities of the same market value and of the character authorized herein. Such right of substitution shall remain in full force and may be exercised by BANK as often as it may desire; provided, however, that the aggregate market value of all collateral pledged hereunder, shall be at least equal to the amount of collateral required hereunder. If at any time, the aggregate market value of such collateral so deposited with TRUSTEE be less than the total sum of the DEPOSITOR's funds on deposit with said BANK, BANK shall immediately deposit with TRUSTEE such additional collateral as may be necessary to cause the market value of such collateral to equal the total amount of required collateral. BANK shall be entitled to income on securities held by TRUSTEE, and TRUSTEE may dispose of such income as directed by BANK without approval of DEPOSITOR. XIII. TRUSTEE shall promptly forward to DEPOSITOR copies of safekeeping or trust receipts covering all such collateral held for BANK, including substitute collateral as provided for herein. XIV. If at any time the collateral in the hands of TRUSTEE shall have a market value in excess of the sum of balances due DEPOSITOR by BANK, the DEPOSITOR shall authorize the withdrawal of a specified amount of collateral, TRUSTEE shall deliver this amount of collateral (and no more) to BANK, taking its receipt therefor, and TRUSTEE shall have no further liability for collateral so redelivered to BANK. XV. Either DEPOSITOR or 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. 3 XVI. When the relationship of DEPOSITOR and BANK shall have ceased to exist between DEPOSITOR and BANK, and when BANK shall have properly paid out all deposits of DEPOSITOR, it shall be the duty of DEPOSITOR to give TRUSTEE certificate to that effect; whereupon TRUSTEE shall, with the approval of DEPOSITOR, redeliver to BANK all collateral then in its possession belonging to BANK, taking its receipt therefor. An order in writing to said TRUSTEE by DEPOSITOR and a receipt for such collateral by BANK shall be a full and final release of TRUSTEE of all duties and obligations undertaken by it by virtue of these presents. Executed this day of officers of the parties hereto. , 1999 by the undersigned duly authorized FOR DEPOSITORY BANK: (Signature) (Title) FOR DEPOSITOR: (Signature) (Title) APPROVED AS TO FORM: (Signature) (Title) ATTEST: (Signature) (Title) Attachments: Application to the Federal Reserve Bank of Dallas for the Holding of Securities in Joint Safekeeping Bank of America, N.A. Application and Bid for Depository Services. 4