HomeMy WebLinkAbout1996-265E \WPDOCS\ORD\DEPOSIT AGR
ORDINANCE NO q10 t
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A DEPOSITORY PLEDGE
AGREEMENT BETWEEN THE CITY, FIRST STATE BANK OF DENTON, TEXAS, AND
TEXAS COMMERCE BANK, N A , AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, Ordinance No 94-117, which amended Ordinance No 93-
176, required the City to enter into Depository Pledge Agreements,
where the possibility exists that funds of the City in excess of
$100,000 may be on deposit, and
WHEREAS, the City has previously designated First State Bank
of Denton, Texas, in accordance with the Municipal Depository Act,
as its depository, and
WHEREAS, on 26th day of September, 1995, the City, First State
Bank of Denton, Texas, and Nations Bank of Texas, N A entered into
a Depository Pledge Agreement, and
WHEREAS, First State Bank of Denton, Texas no longer utilizes
Nations Bank of Texas, N A as its safekeeping institution, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I, That the Mayor, or in his absence the Mayor Pro
Tem, is authorized to execute the attached Depository Pledge
Agreement, which is made a part of this ordinance for all purposes,
in a form substantially the same as the pledge agreement between
the City, First State Bank, and Texas Commerce Bank, N A
SECTION II That Texas Commerce Bank, N A is hereby approved
as the safekeeping institution for securing the City's collateral
under the Depository Pledge Agreement
SECTION III That this ordinance shall be effective immedi-
ately from and after its passage and approval by the City Council
of the City of Denton
PASSED AND APPROVED this the /� day of �� 1996
JACVILLER, MAYOR
ATTEST
WALTERS, CIrVv SECRETARY
BY
AP WVED 9S TO LEGAL FORM
HER ERT L PROUTY, CITY ATTORNEY
BY ����
Attachment "A"
STATE OF TEXAS
COUNTY OF DENTON
DEPOSITORY PLEDGE AGREEMENT
WHEREAS, the City of Denton (hereinafter called "Depositor")
has selected First State Bank of Denton, Texas, a bank chartered by
the State of Texas (hereinafter called "Bank") as a depository for
certain of its funds in demand deposits and/or interest -bearing
time deposits entitled as follows
Account
Account Name(s)
Type of
Account
Number
Employee Claims Account
Public
Funds
Checking
00-1009-0
Operating Account
Public
Funds
Checking
00-1016-5
Utility Sinking Fund
Public
Funds
Checking
00-1017-3
Payroll Account
Public
Funds
Checking
00-1077-7
Rehabilitation Commission
Public
Funds
Checking
00-1363-1
Transportation Grant
Public
Funds
Checking
00-3104-7
CDBG Community Development
Block Grant
Public
Funds
Checking
01-3184-7
Control Concentration
Public
Funds
NOW Checking
00-1395-3
City of Denton
Public
Funds
NOW Checking
00-1408-4
Cloride Branch
Public
Funds
Money Market
50-0018-7
Security Account
Public
Funds
Money Market
51-0571-3
Industrial Development
Authority
Public
Funds
Checking
00-1249-2
Denton Retirement & Nursing
Center Finance Authority
Public
Funds
Checking
01-0939-7
and such additional accounts
as Depositor
may from time to time
designate, and the Bank desires
to be
the depository
of such
funds,
and
WHEREAS, any and all cash balances in any funds deposited with
the Bank must be continuously secured by a valid pledge to
Depositor of certain securities (being herein called the "Approved
Securities"). Approved Securities shall mean all securities which
under the laws of the State of Texas, can be used to secure the
deposits of Depositor The aggregate market value of the Approved
Securities shall at all times be, exclusive of accrued interest,
equal to or in excess of the total funds of Depositor on deposit
with the Bank, to the extent that said funds are not insured by the
Federal Deposit Insurance Corporation
NOW, THEREFORE, for value received and in consideration of the
mutual promises and covenants herein contained, Depositor and the
Bank agree as follows.
1 Depositor deposits shall be secured and Bank hereby grants
a security interest to Depositor in all Approved Securities held in
safekeeping at Texas Commerce Bank, N A (the "Safekeeping Institu-
tion") Except as provided in paragraph 6 of this Agreement, such
00"
Approved Securities shall be subject only to the joint instructions
of both (a) authorized individuals appointed by Depositor, and (b)
specifically authorized officers of the Bank The Depositor shall
provide to the Bank written notice and specimen signatures of
authorized representatives of Depositor on Addendum A of this
document for the purposes hereof, and thereafter written notice of
the removal from or addition to the existing names of such
authorized representatives. The Bank shall provide to the Board of
Directors of Depositor or its authorized representatives written
notice and specimen signature of authorized officers of the Bank on
Addendum B of this document for the purposes hereof, and thereafter
written notice of addition to or removal from the existing list of
names of such officers Addendum A and B are made a part of this
Agreement as if written word for word herein
2 The Bank may make additions to or substitutions of
Approved Securities from time to time and may withdraw excess
Approved Securities, with the amount and character of the new
and/or remaining securities to be subject to the approval of
Depositor If the Approved Securities, so proposed for substitu-
tion are of the kind, character, amount, and value required by law,
such substitution shall be permitted. If approved, the substituted
Approved Securities shall thereafter be subject to all the terms
and conditions of this Pledge Agreement as fully as if originally
incorporated herein
3 Contemporaneously with the execution of this Agreement and
at the time of the substitution or release of any of the Approved
Securities, the Bank shall execute and deliver to Depositor a
Memorandum describing the Approved Securities deposited to or
withdrawn from the securities held pursuant to this Agreement
4 The Bank shall not be obligated to accept interest bearing
time deposits of Depositor in excess of $20,000,000 (twenty million
dollars), but may choose to accept such deposits at its discretion
5 the Bank shall faithfully do and perform all of the duties
and obligations required by the laws of the State of Texas for
depositories of Depositor, and shall upon presentation pay all
checks drawn on it by the duly authorized representatives of
Depositor against collected funds of Depositor on demand deposit,
and shall at the expiration of the term for which it has been
chosen as a depository of Depositor turn over to its successor all
funds, property and things of value coming into its hands as
depository
6 Upon default of any of the Bank's obligations hereunder or
upon insolvency of the Bank or upon the appointment of a receiver
of the Bank and at any time thereafter, Depositor may sell at
public or private sale the Approved Securities or any part thereof
and apply the proceeds of such sale to the satisfaction of any
indebtedness caused by virtue of said default This right is in
Page 2
00-_
addition to or other remedies which Depositor may have under this
Agreement and without prejudice to its rights to maintain any suit
in any court for redress of injuries sustained by the Depositor
under this Agreement, which remedies are expressly reserved by
Depositor
7 The Safekeeping Institution named herein hereby agrees to
hold all Approved Securities deposited with it pursuant to the
terms of this Agreement and to deliver them in accordance with the
terms hereof Additionally, Safekeeping Institution agrees to
serve as collateral agent for Depositor to the extent necessary to
allow Depositor to perfect its security interest granted herein in
the Approved Securities
8 This Agreement may be terminated by either the Bank,
Depositor, or the Safekeeping Institution by giving thirty (30)
days prior written notice to the other parties, by giving notice to
the following persons at the following addresses
iIIya Iib-9*PLi)zi
City of Denton
Teodoro Benavides, City Manager
215 East McKinney
Denton, Texas 76201
BANK
First State Bank of Denton, Texas
Deborah Wilkinson
Senior Vice President, Controller
101 South Locust
Denton, Texas 76201
SAFEKEEPING INSTITUTION
Texas Commerce Bank, N A
Todd Gregory
Vice President
2200 Ross Avenue
Dallas, Texas 75266
9 All applicable provisions and requirements of the laws of
the State of Texas governing depositories for Depositor shall be a
part of this Agreement
10 The validity, operation, and performance of this
Agreement shall be governed and controlled by the laws of the State
of Texas, and the terms and conditions of this Agreement shall be
construed and interpreted in accordance with the laws of this
State, Venue for any proceeding brought for any breach of this
Agreement shall be in Denton County, Texas
Page 3
005
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APMOVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
ATTE
BY Pt� w Q/w-�
NAME r,y9or+h W. l V,,n5w
ATTEST
I
E \WPDOCS\K\DEPOSIT K
DEPOSITOR
CITY OF DENTON, TEXAS
JAC ILLER, MAYOR
dK
FIRST
TEXAS
STATE BANK OF DENTON,
A BANK CHARTERED BY THE
STATE OF TEXAS
. 1,1�3,��
offiwil•
SAFEKEEPING INSTITUTION
TEXAS COMMERCE BANK, N A
Page 4
o0c;
ADDENDUM A
The following designated individuals are authorized representatives
empowered to direct First State Bank of Denton, Texas, N A , a bank
chartered by the State of Texas ("Bank") and Texas Commerce Bank,
N A ("Safekeeping Institution") selected under Item 1 of the
Depository Pledge Agreement in regard to collateral pledges,
releases and substitutions in the Doint safekeeping account Such
pledges, releases, and substitutions shall follow procedures set
forth in the Depository Pledge Agreement
Authorized Officer's Signature
ACCEPTED
NAME Teodoro Benavides
TITLE City Manager
Name and title
Kathy DuBose
Executive Director of Finance
Harlan L Jefferson
Director of Fiscal Operations
Teodoro Benavides
City Manager
Rick Svehla
Deputy City Manager
000,
First State Bank of Denton, Texas, a bank chartered by the State of
Texas ("Bank") has designated the following officers as specifical-
ly authorized to instruct City of Denton ("Depositor") and Texas
Commerce Bank, N A ("Safekeeping Institution") selected under item
1 of the Depository Pledge Agreement in regard to collateral
pledges, releases, and substitutions in the joint safekeeping
account. Such pledges, releases, and substitutions shall follow
procedures set forth in the Depository Pledge Agreement
Authorized Officer's Signature
OO6
Name and title
Dabc)rak W(IK(Asori,SrVp
GvIfle,Assisf VIP
CERTIFICATE OF SECRETARY OF
THE SENIOR LOAN AND DISCOUNT COMMITTEE OF
FIRST STATE BANK OF DENTON, TEXAS,
A BANK CHARTERED BY THE STATE OF TEXAS
The undersigned, being the duly appointed Secretary of the
Senior Loan and Discount Committee (the "Committee") of First State
Bank of Denton, Texas, a bank chartered by the State of Texas (the
"Bank"), hereby certifies that
1 In accordance with the authority granted to it by the
Board of Directors of the Bank, on ll-td-�l� , the
Committee approved the pledge of collateral, as required
by the depository contract with the City of Denton (the
"City"), to secure the Bank Is obligations with respect to
deposits maintained at the Bank by the City,
2 The Committee approval has not been amended, modified, or
repealed in any respect, and is in full force and effect
on the date hereof, and
3 The minutes of the Committee meeting held on VRrrocs 0(a4es
will be maintained as a part of the
permanent records of the Bank
DATE /1-Il -q1-
CERTIFICATE OF
THE BOARD OF
FIRST STATE BANK
A BANK CHARTERED BY
SECRETARY OF
DIRECTORS OF
OF DENTON, TEXAS,
THE STATE OF TEXAS
The undersigned, being the duly elected Secretary of the Board
of Directors (the "Board") of First State Bank of Denton, Texas, a
bank chartered by the State of Texas (the "Bank"), hereby certifies
that attached hereto is a true and correct copy of a resolution of
the Board adopted at a meeting held on { /- tA- q(o , and
such resolution has not been amended, modified, or repealed in any
respect, and is in full force and effect on the date hereof
DATE Il-IB �I�O
BY /
NAME e5 vec C-vov+� oke
TITLE eu e v o oA� �vec%✓s
O y.ci
RESOLUTION GRANTING CERTAIN CORPORATE AUTHORITY
TO LOAN AND DISCOUNT COMMITTEE
RESOLVED, that the Senior Loan and Discount Committee is
hereby granted the corporate authority to approve on behalf of
First State Bank of Denton, Texas ("Bank") such security agreements
and other agreements related to the deposit of funds in this Bank
by any governmental entity as such Senior Loan and Discount
Committee shall deem in the beat interests of this Bank from time
to time
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