HomeMy WebLinkAboutR-1986-03
.
.
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custody receipt said securities may not be thereafter withdrawn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.
.
.
Resolution No. 86-3, Page 2
Section 3. The City shall be given five (5) days notice
by any Depository Bank, of any request for release of pledged
securities, or'request to pledge additional securities.
Section 4. The market value of the securities pledged by a
Depository Bank shall be an amount equal to 100% of the amount of
City funds on deposit in said Depository Bank.
Section 5. Resolution 74-4, to the extent amended by this
Resolution, is repealed.
Section 6.
The City Council officially finds, determines,
recites and declares that a sufficient written notice of the
date, hour, place and subject of this meeting of the City
Council was posted at a. place convenient to the public at the
City Hall of the City for the time required ,by 1a~ preceding
this meeting, as required by the Open Meetings Law, Article
6252-17, Texas Revised Civil Statutes Annotated: and that this
meeting has been open to the public as required .by law at all
times during which this resolution and the subject matter
thereof has been discussed, considered and formally acted upon.
The City Council further ratifies, approves and confirms such
written notice and the contents and posting thereof.
PASSED AND APPROVED, this the lOth day of February, 1986.
CITY OF LA PORTE
Officer
ATTEST:
~~
Cherie Bladk,-City Secretary
APPROVED:
~A~-~~~
Charles Dippel, Ac 'n City
Attorney