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HomeMy WebLinkAboutOrdinance No. 416...... CITY OF THE COLONY, TEXAS AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH FIRST COLONY B~NK FOR THE CITY DEPOSITORY CONTRACT. ATTACHING THE APPROVED FORM OF CONTRACT AS EXHIBIT "A"; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the City Manager of the City of The Colony, Texas is hereby authorized to execute on behalf of the City a contract with First Colony Bank for the City Depository Contract. The approved form of such contract is attached hereto as Exhibit "A", amd made a part hereof for such purposes. SECTION 2. This Ordinance shall take effect immediately from and after its passage by the City Council of the City of The Colony, Texas. DULY PASSED AND APPROVED by t~e City Council of the City of The C°l°ny' Texas' °n thi' 'he °f 'l' APPROVED: (...../ L~ ~ple~/V~a'~or ATTEST: [S E A L] STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON This agreement made and entered into between the City of The Colony, Texas, hereinafter called "City" and First Colony Bank, hereinafter called "the depository". WI TNESSETH: WHEREAS, on the~Lday of ~:~__, i9. ~, First Colony Bank was designated City depository for the City of The Colony, Texas; NOW, THEREFORE, in consideration of the mutual benefits considerations, covenants and conditions contained herein, the parties agree as follows: 1. The term of this agreement and contract is for a twenty-four (24) month ~eriod, commencing ~, ~, and ending , 19~. 2. The rate of interest which the depository wil] pay the City on time deposits and/or certificates of deposit under $100,000.00 will be at least 3/4% of one % greater than the rate on Treasury Bills with matching maturity.* 3. The rate of interest which the depository will pay the City on time deposits and/or certificates of deposit over $100,000.00 will be at least 1% greater than the rate on Treasury Bills with matching maturity.* 4. The interest on the above time deposits will be paid monthly. 5. There will be no charge for overdrafts, should any occur, or charged back checks, provided that overdrafts will be covered within three (3) days from the date of such overdrafts. After three (3) days, the City will be charged at the rate of ten percent (10%) per annum for the time the account is in overdraft. The depository will deliver charged back checks daily as they occur. * There are minimum rates that are guaranteed to the depository under this contract. 6. The depository will furnish the City without cost its largest safety deposit box, night depository bags, checks, money orders, cashier,s checks, drafts, or any other supplies necessary in connection with the City's deposit accounts. 7. Statements on all accounts will be rendered to the City on a regular monthly basis, or as often as the City may require. 8. The daily account balance of each account will be presumed to be invested at a rate that would be equal to the 90 day Treasury Bill rate at the most recent weekly auction. This rate shall be set at the beginning of each month. Each quarter each account would be analyzed to determine if the earnings of the investable balance equals or exceeds the cost of processing the City's financial transactions. If the earnings do not cover the cost of processing the City's financial transactions, then the depository will have the right to charge the account the amount of the net deficiency in processing costs for the quarter. 9. All time deposits or time certificates of deposit which have not elapsed on the termination date of this contract shall remain on deposit with the depository under the same terms and conditions in effect during said contract until the date such time deposits have elapsed. 10. All monies which are deposited into the depository under the pro- visions of this contract shall be continuously secured, in accordance with the laws of the State of Texas applicable thereto, specifically Article 2560(d), Revised Civil Statutes of Texas, and pursuant thereto, the depository agrees to pledge with the governing body of the City for the purpose of securing such City funds, securities of the following kind, in an amount equal to the amount of said City funds on deposit in said depository bank, to-wit: United States Bonds, Certificates of Indebtedness of the United States, Treasury Notes of the United States, and other evidences of indebtedness of the United States which are guaranteed as to both principal and interest by the United States Government, Bonds of the State of Texas, or of any County, City, Town, Independent School District in the State of Texas; or Bonds issued under the Federal Farm Loan Act, or Road District Bonds, Bonds, Pledges or other evidences of indebtedness issued by the Board of Regents -2- of the University of Texas, Notes or Bonds secured by Mortgages insured and Debentures issued by the Federa! Housing Administrator of the Un!ted States Government; in Shares or Share Accounts of any Buildin§ and Loan Association organized under the laws of this State, provided the payment of such Shares or Share Accounts of any Federal Savings and Loan Association domiciled in this State, provided the payment of such Shares or Share Accounts is insured by the Federal Savings and Loan Insurance Corporation; Bank acceptances of Banks having a capita! stock of not less than $500,000.00, and Bonds issued by Municipal Corporations in Texas; and the Securities so pled§ed wi!! be deposited in escrow in a bank selected by the City, at no expense to the City, under an appropriate contract to be drawn to confirm with the requirements of the above numbered Statute and the provisions of this Contract. 11. The City also reserves the right to p!ace or invest part or al! of its surp!us or excess funds outside the designated depository in any !awfu! manner as may be determined by the City Council from time to time throughout the term of this Contract, covering $100,000 or above CD's only. 12. Al! provisions of this Contract are subject to regulations presently in existence or as may be promulgated by the Board of Governors of the Federa! Reserve System or by any other supervisory authority of the United States or of the State of Texas during the existence of the Contract. EXECUTED IN DUPLICATE this~/ day of CITY,OF~.TH£ COLONY, TEXJ~S NICE CARROLL ATTEST: ~ITY SECRETARY FIRST COLONY BANK: /~/ LES KARL, PRESIDENT ATTEST: -3-