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. e -. 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: . 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. . (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custody receipt to the City, under the terms of "7hich joint custody receipt said securities may not be thereafter withdrawn by the Depository Bank with- out the City's prior written consent. .