R-1986-03 - Laserfiche WebLink

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. . RESOLUTION NO. 86- 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, CON- CERNING SECURITY PLEDGES BY THE CITY DEPOSITORIES. WHEREAS, Article 2560(d), V.A.T.S., requires depositories of City funds to pledge securities in an amount equal to the amount of said City funds on deposit in said Depository Bank or Banks; and WHEREAS, it is the desire of the City Council of the City of La Porte to reduce to written policy, the longstanding policy of the City of La Porte concerning procedures and acceptable securities for said security pledges: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The following types of security shall be accept- able to the City of La Porte for the purpose of pledges to secure demand and time deposits by the duly authorized depositories of the City, to-wit: (1) 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; provided, however, any such securities must have a maturity date not more than ten (lO) years from the date of their pledge. (2) Bonds of the State of Texas, or of any county, city, town, independent school district, common school district or other school district in the State of Texas; provided, however, said bonds must be rated "A" or better by Moody's Investors Service; and provided, further, said bonds must have a maturity date not more than ten (10) years from the date of their pledge. Section 2. All pledges of collateral by a Depository Bank of the City, shall be pledged with some other bank, which is not a Depository Bank of the City, which pledgee bank shall issue a joint custody receipt to the City, under the terms of which joint custody receipt said securities may not be thereafter withdrawn by the Depository Bank without the City's prior written consent.