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<br />used to calculate the earnings allowance whether it is the ledger balance, collected or available <br />balance. Any excess collected balance may be invested daily by the Bank as directed by the <br />City in a City approved overnight investment, an interest bearing account or a SEC registered <br />money market fund. <br /> <br />VI. OTHER MATTERS OF IMPORTANCE <br />A. SECURITY PLEDGES <br />As security for the deposits of the City of La Porte, the Bank shall pledge to the City <br />securities equal to 102% of the balances the City of La Porte maintains in the Bank. <br /> <br />Reporting Requirements: The Bank shall provide the City with a report of <br />securities pledged at the end of each month or at any time requested by the <br />Director of Finance or his/her designated representative. This report should be <br />delivered to the City by the 10\h of each month and should reflect the following <br />information as of the end of the previous month: <br />~ Total pledged securities itemized by: <br />~ Name <br />~ Type/Description/Cusip Number <br />~ Par Value <br />~ Current Market Value <br />~ Maturity Date <br />~ Moody's or Standard & Poors Rating (both, if available) <br /> <br />Safekeeping Requirements: The securities pledged shall be pledged in the name <br />of the city and held in safekeeping by an independent bank other than the <br />Depository Bank. The City also requires a written agreement with the 3rd party bank <br />in accordance with the Uniform Commercial Code (UCC) requirement for control. <br />Any swaps, sales, or transfers of collateral cannot occur without written approval by <br />the City. The original copy of all safekeeping receipts shall be filed with the Director <br />of Finance of the City of La Porte. The City will reimburse the depository bank for <br />any safekeeping charges provided the estimated charges are specified under Item <br />C on the quotation form. In accordance with State law, the Board of directors of the <br />depository bank shall be required to provide a resolution of certification approving <br />the commitment and delivery of the collateral to the safekeeping institution not later <br />than five days before the commencement of the contract period. <br /> <br />Amegy has a monthly report that can be sent by the 10lh business day of the <br />following month however it does not reflect Moody's or S&P ratings. <br /> <br />B. OVERDRAFTS <br />An overdraft shall exist when a negative demand balance exists in the City's <br />accounts collectively, not by individual account. The City does not intend to have a <br />net overdraft position occur during the course of the contract period. However, <br />should a net overdraft condition occur, the following stipulations would apply. The <br />maximum number of days the overdraft condition would be allowed is 3 <br />banking days. The maximum amount of the overdraft to be allowed would be <br />$500,000.00. The interest rate would be Prime +5% per annum computed on an <br />actual day basis for the days and amount of overdraft. (Item F on Quotation Form) <br /> <br />c. AVAILlBILlTY OF FUNDS <br />Please provide a schedule and detailed explanation of funds availability, showing <br />both time and day of availability, and specify the institution location to which the <br />20 <br />