HomeMy WebLinkAboutR-1974-4
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RESOLUTION NO. 74-4
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LA PORTE,
CONCERNING 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 Commission of the
City of La Porte to reduce to written policy, the long-
standing policy of the City of La Porte concerning procedures
and acceptable securities for said security pledges:
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF LA PORTE:
Section 1. The fOllowing types of security shall be
acceptable 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 securi-
ties must have a maturity date not more than
ten (10) years from the date of their pledge.
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(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 "7hich joint custody receipt said securities
may not be thereafter withdrawn by the Depository Bank with-
out the City's prior written consent.
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Resolution No. 74-4, Page 2.
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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 110% of
the amount of City funds on deposit in said Depository Bank.
PASSED AND APPROVED, this the 28th day of August, 1974.
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CITY OF LA PORTE
By l t!-.. ~-c
E. A. Thomas, Mayor
ATTEST :.;
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City Cl k
APPROVED: ~
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City Attorney
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