HomeMy WebLinkAboutRes1991-150
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Sponsored by: Schaefermeyer
CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-150
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING A BANKING SERVICES AGREEMENT
WHEREAS, the city's banking services agreement with First
National Bank of Anchorage expires on December 31, 1991; and
WHEREAS, the city properly advertised a request for proposals
to provide banking services to the city; and
WHEREAS, proposals were received from both local banks; and
WHEREAS, both proposals meet the basic criteria, and both
banks have excellent reputations and could clearly meet all of the
city's banking needs in an efficient manner; and
WHEREAS, FNBA's proposal provided the lowest compensating
balance for all requested services and provided the highest rate of
return on the city's overnight investments;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager is hereby authorized to execute
a three-year banking services contract, to include two one-year
renewal options, with the First National Bank of Anchorage. A copy
of the agreement is attached and incorporated herein by reference.
Section 2. This resolution shall take effect immediately upon
its adoption.
PASSED AND APPROVED by the City Council of the city of Seward,
Alaska, this 9th day of December, 1991.
THE CITY OF SEWARD, ALASKA
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':t. c''L-tc;(j,;{v . /'h.
Donald W. criPP~~Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Crane, Cripps, Krasnansky, Swartz, White
None
Burgess, Dunham
None
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-150
ATTEST:
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(City Seal)
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the
city of Seward, Alaska
/AMJ fLP ~
Fred B. Arvidson
City Attorney
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'1 t - )(S Lf-
P,O, BOX 167
SEWARD. ALASKA 99664
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. Main Office (907) 224-3331
. Police (907) 224-3338
. Harbor (907) 224-3138
. Fire (907) 224-3445
. Telecopier (907) 224-3248
CITY OF SEWARD
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BANKING SERVICES CONTRACT
THE PARTIES AGREE AS FOLLOWS:
Section 1. DEFINITIONS As used herein:
A. "CITY" means the City of Seward, its departments and divisions.
B. "CONTRACfOR" means the First National Bank of Anchorage.
Section 2. TERM
This contract is effective from January 1, 1992 through December 31, 1994 with two one year
renewals.
Section 3. CONTRACfOR'S OBLIGATIONS
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The CONTRACTOR shall do, perform, and carry out in a good and professional manner the
services as described in the CONTRACTOR's proposal for providing banking services for the
city of Seward dated December 2, 1991 (Appendix "A").
CITY shall reserve the right to obtain competitive bids on investment purchases for terms
longer than overnight.
The CONTRACfOR shall provide collateralization of all daily investments, in excess of FDIC
limits, in accordance with the attached Seward Code of Ordinances Section 5.15.025
(Appendix "B"). Collateral pledged to secure overnight investments and the Certificate of
Deposit will be held by a third party escrow bank under the attached existing tri-party
agreement (Appendix "C").
Section 4. INDEPENDENT CONTRACTOR
B.
c.
It is understood and agreed by the parties that CONTRACTOR shall be an independent contractor, and
while the CITY may, at reasonable times during working hours, inspect, review, and evaluate the per-
formance of the CONTRACfOR to assure itself that the CONTRACTOR is in compliance with the
terms herein, the CONTRACTOR shall not receive direct supervision or instruction with regard to the
manner in which the CONTRACfOR performs duties.
Section 5. CITY OBLIGATION
A.
The CITY shall maintain a non-interest bearing Certificate of Deposit with CONTRACfOR in
the amount of $112,000 for the provision of the services CONTRACTOR shall provide as
outlined in the CONTRACfOR's proposal (Appendix "A").
Banking Services Contract
Page 1
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c.
The CITY shall not be obligated to provide the CONTRACTOR with any additional monies,
goods, services or other things of value in connection with performance of this agreement
beyond those specifically enumerated herein.
The CITY agrees to make its executive and technical personnel available to the
CONTRACTOR for consultation on matters relating to performance of this agreement.
Section 6. NONDISCRIMINATION
The parties agree that in the performance of their respective duties, neither shall discriminate against
any person on the basis of race, creed, color, national origin, handicaps, sex, or age.
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B.
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Section 7. ASSIGNMENT
Except where expressly permitted under the terms of this contract, any assignment by the
CONTRACTOR of his interest in any part of the contract or any delegation of duties under this
contract shall be void, and an attempt by the CONTRACTOR to assign any part of his interest or
delegate duties under this contract shall give the CITY the exclusive option to terminate this contract
without any liability.
Section 8. LIABILITY
A.
The CONTRACTOR shall save, hold harmless, and indemnify the CITY from any claims,
lawsuits or judgments arising from loss, damage to property or injury to persons from which
the city may be held responsible caused by negligent, or otherwise wrongful conduct of the
CONTRACTOR. This subsection shall not apply to acts of omissions of the CONTRACTOR
undertaken in strict compliance with specific orders of instructions of the CITY.
The CITY shall save, hold harmless and indemnify the CONTRACTOR from any claim,
lawsuits or judgments arising from loss, damage to property or injury to persons for which the
CONTRACTOR may be held responsible on account of negligent or otherwise wrongful
conduct of the CITY.
Section 9. NO ADDITIONAL WORK
No claim for additional services not specifically herein provided, done or furnished by the
CONTRACTOR shall be allowed by the CITY; provided, however, that the CONTRACTOR may at
his own expense provide such other services as he may deem appropriate and consistent with the
purpose and terms of the contract.
Section 10. NONWAIVER
No failure of the CITY to insist on strict compliance of any terms of this contract shall constitute a
waiver by the CITY of its rights with respect to performance rendered pursuant to this contract and
thereafter to insist upon full and strict compliance with the exact terms of this contract.
Section 11. COMPLIANCE WITH LAWS
The CONTRACTOR shall comply with all Federal, State and local statutes or ordinances and shall be
responsible for the obtaining of all permits or licenses required by Federal, State or local agencies for
. Section 12. TERMINATION
Written notice provided herein shall be given in writing and transmitted by personal delivery or
prepaid fIrst class certifIed mail addressed as follows:
CITY:
City of Seward
Finance Director
P.O. Box 167
Seward, Alaska 99664
CONTRACfOR:
Cashier
The First National Bank of Anchorage
646 West Fourth Avenue
P.O. Box 100720
Anchorage, Alaska 99510-0720
Or to other such persons or addresses which the CITY or the CONTRACTOR may from time to time
designate in writing. Termination of the agreement by either party shall require sixty (60) days written
notice.
Section 13. AMENDMENTS
This contract may be amended at any time by written consent of the parties. All amendments shall be
attached as appendices to this contract.
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Section 14. JURISDICfION
All civil actions brought by any parties under this contract shall be commenced and maintained in the
District or Superior Court, Third Judicial District, Anchorage, Alaska, under the law of the State of
Alaska.
Section 15, !NV ALID PROVISIONS
If any provisions, covenants or conditions of this contract are held to be invalid in any respect by a
court of competent jurisdiction, such invalidity shall in no way affect any other provisions, covenants,
or conditions contained herein.
Section 16. INTEGRATION
This document and its appendices set forth of all the terms, conditions and agreements of the parties
relative to this contract and supersedes all prior terms, conditions or agreements which are hereby
declared terminated and are of no further force and effect.
Section 17 . RENEWAL
This contract may, upon approval of both parties, be renewed for an additional two periods of one year
each.
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Banking Services Contract
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. IN WITNESS WHEREOF, the parties have executed this contract on the dates shown below.
THE CITY OF SEWARD
ANCHORAGE
THE FIRST NATIONAL BANK OF
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City anager
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Name: James A. Murray
Title:
Cashier
Date: ? ~ ;? ~ -- 72.--
February 24, 1992
Date:
ATTEST:
APPROVED AT TO FORM:
PERKINS COlE, Attorney for
City of Seward, Alaska
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Fred B. Arvidson
City Attorney
(city seal)
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Banking Services Contract
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Appendix "A"
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Proposal for providing
Banking Services
For
CITY OF SEWARD
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Prepared by:
FIRST NATIONAL BANK OF ANCHORAGE
December 2, 1991
10:00 a.m.
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I. QUALIFICA'. )NS OF FIRST NATIONAL BANI F ANCHORAGE
A. FEDERALLY CHARTERED COMMERCIAL BANK
The First National Bank of Anchorage is a full service
commercial bank operating under National Charter No. 12072
issued by the comptroller of the Currency, dated
December 21, 1921.
B. BRANCH LOCATIONS
The First National Bank of Anchorage operates 28 branch
offices throughout the State of Alaska, including a branch
office in Seward located at the following address:
Seward Branch
303 4th Avenue
Seward, AK 99664
Lobby Hours: 10:00 a.m. - 5:00 p.m. *
* Deposits received at the Seward Branch are processed and
credited to the account on the next business day.
C. SECURITY OF DEPOSITS
Deposits maintained by the City of Seward, will be insured
by the Federal Deposit Insurance Corporation (FDIC), up to
$100,000 in accordance with FDIC rules. Additionally, any
deposits maintained by the City of Seward at First National
Bank. of Anchorage, will be collateralized under a formal
tri-party agreement with Seattle First National Bank
(Exhibit A). Collateral will meet the specifications of the
City of Seward Code of Ordinances, Chapter 5.15.
D. FINANCIAL STRENGTH
Based on the information contained in our 1990 Annual Report
and September 30, 1991 Statement of Condition enclosed
herewith, the First National Bank of Anchorage meets or
exceeds the financial strength requirements of all
regulatory agencies.
E. REFERENCES
We feel the experience gained serv1c1ng the City of Seward's
banking needs in the past provides the best reference.
Additional references will be provided upon request.
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II. SERVICES PRe OED
A. ZERO-BALANCE CASH MANAGEMENT PROGRAM
In servicing the deposit accounts established by the City of
Seward, the First National Bank of Anchorage offers to
provide our Zero Balance Cash Management Program.
In functioning the General Checking Account, we offer to
execute an overnight Repurchase Agreement daily for the
actual collected funds in the account. Deposits received
throughout the day are posted to the account each evening
and after checks are presented for payment, any remaining
available balance is automatically invested into an
overnight Repurchase Agreement. Availability of deposits
will be assigned in accordance with the enclosed schedule
(Exhibit B). This method will allow for the immediate
investment of cash and First National Bank of Anchorage
items deposited.
In conjunction with our Automated Repurchase Agreement we
will provide a Zero Balance Payroll Account which will be
linked to the General Checking Account, to enhance
accountability of disbursements.
In functioning disbursements, we propose to fund these
accounts with Automatic Daily Transfers from the General
Checking Account as checks are presented for payment.
Each day, one debit will post to the General Checking
Account representing the aggregate transfer to accommodate
disbursements. Credit transfers to Zero Balance Accounts
will be supported by a supplemental "Report of Items Posted"
(Exhibit C), provided on a daily basis.
Additional checking accounts will be provided when required
by the City of Seward for special projects.
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B. REPURCHAS. \GREEMENTS
The First National Bank of Anchorage will provide an
Overnight Repurchase Agreement daily as described in Section
II.A. "Zero Balance Cash Management Program". Repurchase
Agreements will be executed in accordance with the Public
Securities Associations "Master Repurchase Agreement"
(Exhibit D). Repurchase Agreements will be executed
exclusively against obligations of the U.S. Government
and/or it's agencies, and not against securities of lesser
quality.
The Repurchase Agreement rate paid for overnight investments
will be equal to the average bond equivalent yield resulting
from the most recent auction of the 91 day U.S. Treasury
Bill plus 15 basis points adjusted as of the auction date.
A minimum amount of $100,000 in funds must be available to
execute a Repurchase Agreement.
Transfers to/from the account of principal and interest
be separately identified on the monthly Bank Statement.
Repurchase Agreement "Confirmation" (Exhibit E) will be
to the City on a daily basis.
will
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sent
c. INVESTMENT SERVICES
Our bank will provide investment counselling and effect
purchase and sell orders as directed.
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D. BANK STATEMENTS AND CANCET.T.F.D CHECKS
Bank statements and cancelled checks will be provided to the
City of Seward by the tenth (lOth) business day following
month end. Checks will be returned in numerical order along
with a report or statement listing the cancelled checks in
numerical order indicating the check number, date paid and
amount.
E. PRINTED SUPPLIES
First National will provide checks and deposit slips printed
to specifications of the City of Seward.
F. ENDORSEMENT STAMPS
Fist National will provide endorsement stamps through one of
our vendors meeting your needs and the endorsement standards
set forth by Federal Regulation ce.
G. STOP PAYMENTS
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We will provide a check stop payment service by telephone
with completion of authorized signature follow-up by mail.
This written confirmation must be received back by the bank
within 14 days.
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H. NIGHT DEI ITORY SERVICES
The First National Bank of Anchorage will supply the city of
Seward with night depository bags, keys, and services as may
be required from time to time.
I. WIRE TRANSFER SERVICES
First National Bank of Anchorage is an "On-Line" bank
providing Wire Transfer services through the Federal Reserve
Bank Wire system. Incoming wire transfers are posted to the
account upon receipt by the Bank. First National will
notify the City of Seward of incoming wire transfers on the
day of receipt.
First National will accept outgoing wire transfer
instructions initiated by the City of Seward by telephone,
fax or letter pursuant to an outgoing Funds Transfer
Agreement meeting the requirements of Uniform Commercial
Code Article 4A. Our standard Outgoing Funds Transfer
Agreement and related documents are enclosed for your review
(Exhibit F), as fo~~ows~
1. OUTGOING FUNDS TRANSFER AGREEMENT
This form identifies the rights and responsibilities of
both parties and provides acknowledgment that funds may
be credited by the beneficiary's bank solely on the basis
of account number.
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2. EXHIBIT A - CUSTOMERS DESIGNATED ACCOUNTS & AUTHORIZED
REPRESENTATIVES
This form identifies who is authorized for the City of
Seward to initiate wire transfers and which accounts may
be debited for the amount of these wires.
3. EXHIBIT B - CUSTOMERS DESIGNATED BENEFICIARIES
This form identifies where wire transfers may be sent and
provides complete wiring information for repetitive wire
transfers.
4. SECURITY PROCEDURE ADDENDUM
This form identifies the security procedures to be
fo~~owed by the bank to authenticate wire transfer
instructions.
5. NON-RECURRENT BENEFICIARIES ADDENDUM
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This form may be utilized by the City of Seward if you
require the capability of initiating one time wires to
beneficiaries other than those designated on Exhibit B.
Please note the additional security procedure requirement
that instructions be in writing. Alternatives to this
requirement will be considered.
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J. CASHIER'S
IECKS
The City of Seward may purchase Cashier's Checks as required
without additional charge.
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K. SAFE DEPOSIT
First National will provide the City of Seward with two Safe
Deposit Boxes.
L. MERCHANT BANKCARD SERVICES
Based on current sales volume and average ticket information
of the City of Seward, we offer to provide processing of
your Visa and MasterCard receipts through one of two
methods:
OPTION 1 - PAPER SALES TICKETS
The City of Seward would utilize credit authorization
terminals and manually process paper sales tickets. All
necessary forms would be provided by the bank. Under this
option, the monthly discount fee would be based on the
average ticket and monthly volume in accordance with the
schedule provided as Exhibit G.
OPTION 2 - ELECTRONIC DATA CAPTURE
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The city of Seward would utilize credit authorization
terminals with electronic data capture of sales
information. Essentially sales slips need not be presented
to the Bank to receive credit. The fee for processing
Bankcard receipts in this manner is 2.65% of total Bankcard
sales (net of credits) payable once each month.
Under either option the rental fee for authorization
terminals is $12 per month or $30 per month for a terminal
with a printer. Card imprinters will be provided for a
rental fee of $10 annually, or may be purchased for $30
each. Imprinters that are leased from the Bank will be
serviced at no charge.
Compensation for all Bankcard Services must be paid directly
to the BankCard Department and not as part of procedures
outlined in Section IV. "Compensation for Services"
First National provides on-sight training and our
experienced merchant representatives are always available
for inquiries or additional services.
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Additionally, various City departments can be established
under separate merchant descriptions for enhanced
accountability. Reporting can be provided by location and
on a consolidated basis. Bankcard charges may also be
assessed by location or on a consolidated basis.
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M. ACCOUNT R' ~ESENTATIVES
We will assign account representatives to be responsible for
the City of Seward's banking needs. These representatives
will be fully supported by key personnel throughout the
bank. You will be identified as a "priority customer" and
our bank will provide the consistent, high-quality service
Alaskan's have grown to expect from First National. Account
representatives assigned to the City of Seward are:
clyde Johnson, Manager
Seward Branch
Peggy Jackson, Assistant Cashier
Seward Branch
Alan E. Dablemont, Assistant Vice President
Deposit and General Services Department (Anchorage)
III. OPTIONAL SERVICES
A. ON-LINE CO~PU~~K ACCESS
We offer to provide the City of Seward an On-Line
Communication system, "Access-One" with access to account
information. Access is available each banking day between
the hours of 8:00 a.m. and 6:00 p.m. The following
information may be obtained through this system:
1. Account Ledger and Collected Balances
2. Zero-Day, I-Day, 2-Day and 3-Day Float
3. Itemization of Paid Checks
4. Itemization of Deposits Posted (indicating sub-account
auxiliary number, if applicable)
In order to receive this information, the City of Seward
would need to possess an IBM (or compatible) PC with a Hayes
(or compatible) modem with transmission capabilities of 2400
baud. Necessary software will be provided by the First
National Bank of Anchorage.
An "Access-One" Manual is enclosed for your convenience
(Exhibit H).
B. DIRECT DEPOSIT OF PAYROLL
Should the City of Seward pursue the use of Direct Deposit
of employee payroll, First National Bank of Anchorage would
be able to offer Direct Deposit services through one of
three methods:
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OPTION-I
MAGNETIC TAPE MEDIUM
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a. The City of Seward would submit a magnetic tape to First
National Bank of Anchorage which is consistent with the
National Automated Clearing House Association (NACHA)
format for transmittal to any bank nationwide with ACH
capability. A copy of the 1991 NACHA Operating Rules is
enclosed for your convenience.
b. In order to comply with payroll deadlines, the tape
should be submitted to First National Bank of Anchorage
Data Center by 12:00 noon, two (2) working days prior to
the actual payday.
c. Upon receipt of the tape, the First National Bank of
Anchorage would extract all the deposit information
associated with our depositors. The same day the deposit
information of all other nationwide Automated Clearing
House member institutions would be transmitted to the
Federal Reserve Bank of San Francisco via Fedline II.
Fedline II (the electronic link to the Federal Reserve's
ACH program) is the most advanced technology available
today and provides our customers the benefits of:
* Expedited processing over magnetic tape medium
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* The most reliable method of delivering information.
* Facilitated delivery of information to destinations
outside the 12th Federal Reserve District.
* Reduced cost
The City of Seward would be contacted immediately should
there be any problems with the original tape submitted to
the bank.
d. Credit to recipients accounts at other financial
institutions will be dependant upon that institution's
rules and regulations for deposit accounts. Credit to
our depositors will be given at the start of business on
payday.
e. The First National of Anchorage will debit the City of
Seward's account on the actual payday.
The con Services Agreement (Exhibit I) for providing ACH
debit/credit origination services in this manner is
enclosed for your consideration.
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OPTION Ir
PC BASED ACH ORIGINATION
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Under this option, the City of Seward would transmit ACH
entries to the Bank via modem from an IBM (or compatible) PC
or deliver the entries on a floppy disk (3.5" or 5.25").
Software will be provided by the Bank. This software
features import capability allowing the City to download ACH
files directly from their main frame computer. Other
features, benefits and requirements are the same as for
origination by magnetic tape medium. The Annex to the ODFI
Services Agreement would be modified to indicate the method
of initiation. A demonstration disk will be provided for
your review upon request.
OPTION III - CHECK AND LISTING
As an alternative, you may provide the First National Bank
of Anchorage with a check and listing of employees wishing
to have their pay directly credited to their First National
account. This information should be received by the bank
two (2) business days prior to the actual payday to ensure
timely credit.
C. SEWARD GENERAL HOSPITAL - BANKING SERVICES
To include banking services for the hospital within the
city's banking service agreement we propose the following
options:
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OPI:ION I - AUXTT.TllRY NUMBER TRAClO:NG SYSTEM
Under this option, all deposits for the city and the
Hospital would be made to the City's General Account. An
auxiliary sub-account number would be assigned to the City
and to the Hospital to maintain separate accountability.
Other units of the City may also be assigned auxiliary
sub-account numbers for tracking of deposits, if desired.
We would provide each depository unit with deposit slips
specially encoded with their auxiliary sub-account number.
A daily (Exhibit J) and/or monthly report (Exhibit K) can be
provided indicating the amount of each deposit and
identifying the depositing unit. This information can also
be obtained through use of our On-Line Information system,
"Access One" described in section III A. of this proposal.
A sample of the screen display on "Access One" showing how
this is formatted is enclosed (Exhibit L). BankCard
deposits can al.so be tracked through this system.
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Disbursements for the Hospital would be accomplished through
the use of a zero-balance checking account as described for
the City'S payroll account in Section II A.
This system will allow the City of Seward to track the
Hospital's deposit and disbursement activity separately and
maximize earnings as all "collected" Hospital funds would be
invested into the City'S Overnight Repurchase Agreement.
Page 8
OPTION II'
FIRST RATE CHECKING
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Alternatively, if the City wishes to maintain the Hospital's
account separate from the City, we offer to provide our
First Rate Checking Account. First Rate is an interest
bearing checking account featuring unlimited check writing.
It is available to individuals, non-profit organizations
operating for specific purposes and to government units.
Interest is computed daily from the date of deposit and paid
monthly. Interest is subject to fluctuation and is
currently at 4.25%.
D. MASTERCARD FOR CITY AND HOSPITAL OFFICIALS
First National Bank of Anchorage issues Commercial
MasterCard accounts tailored to each businesses needs. Both
regular and Preferred Gold accounts are available.
Regular
$5,000.
greater.
accounts
accounts may be assigned credit limits from $300
Gold accounts are assigned limits of $5,000 or
Annual Fees for regular and Preferred Gold
are $20 and $50 respectively.
to
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All First Nationals MasterCard accounts currently carry an
Annual Percentage Rate (APR) of 14.75 on purchases. The
interest rate is determined by the bank from time to time in
its discretion, but does not exceed 1.4166% per billing
cycle (Annual Percentage Rate 17). A "Grace Period" for
purchases of 25 days from the statement date, apply to both
types of accounts.
Monthly statements for each account can be mailed either to
the business or directly to the cardholder. Monthly summary
and activity reports are sent directly to the business.
These reports allow businesses to identify each account's
transactions for the following categories: restaurants,
lodging, airlines, car rental, cash advances, and retail.
In addition, consolidated summaries of total account
activity for the year to date and current month are
provided. A consolidated payment statement is not currently
available, therefore, each account is billed separately.
In order to provide BankCard Services to the City, we
require a resolution from the city Council addressing at
least the following items:
1. Authorization that cards be issued in the name of
specific individuals and the credit limits assigned to
each individual account.
2. The resolution must state that this debt will be an
obligation of the City of Seward.
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3. All the accounts must expire no later than the nearest
expiration of term of any City Council Member or one
year, whichever is sooner.
Page 9
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4. The re lution must designate a pl ~on or persons
authorized to sign agreements and other documents related
to this request.
All fees for BankCard services will n2t be converted to
compensatory balances and must be paid directly to the Bank
by the City of Seward.
E. OTHER SERVICES
Our Bank is always available to discuss any service not
mentioned within this proposal.
IV. COMPENSATION POR SERVICES
A. GENERAL SERVICES
The First National Bank of Anchorage will provide the
general services required by the Request For Proposal as
outlined in section II. "Services Provided" for a
compensatory balance* of $8~,00Q for a three year period
with two one year renewal options. Compensatory balances
are to be maintained in a non-interest bearing certificate
of Deposit for the length of the contract.
B. OPTIONAL SERVICES
The First National Bank of Anchorage will provide the
services outl.ined in section III.. "Optional services" for
the additional compensatory balances as follows:
1. On-Line Computer Access $10,000
2. Direct Deposit of Payroll No Charge
3. Seward General Hospital Banking Services 21,000
4. MasterCard for City & Hospital Officials *
* Fees for all bankcard services must be paid directly to the
bank and will be assessed in accordance with the fee schedule
enclosed (Exhibit M).
Page 10
DEPOSIT ~ "'Iy AGREEMENT
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SECURmES DEPOSITED.
Depositary for public funds, has delivered tn
Trustee, the following securities:
, a designated
as
RECEIPT ACKNOWLEDGEMENT. Trustee acknowledges receipt of the securities identified above. to be held
by Trustee as security for public funds deposited with Depositary by the
referred to herein as the Public Official,
The Depositary and the Trustee, subject to the approval of the Public Official, agree as follows:
1. DEPOSITARY DECLARATION. ~tdlY warrants that it is duly desigDated as such. and that securities
listed above qualify as collateral for the public funds placed on deposit with Depositary by the Public Official.
2, TRUSTEE DECIARATION. Trustee agrees to hold said securities as required by law, and to deliver them as
provided herein.
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3, INCOME DISPOSITION. Trustee shall remit to the Depositary upon receipt the net income received on the
securities held. Provided. this section 'shall not be operative if the Public Official has notified the Trustee in writing
~ Depositary is in de!auIl.
4. DEPOSITARY DEFAULT. Upon Trustee's rec~pt of written notice from Public-Official that Depositary is in
default of repayment of the public funds or a part thereof, Trustee shall deliver to the Public Official or upon his
order, all or such part of the securities held as directed by the Public Official.
5, SECURITIES RELEASE. Upon the Trustee's receipt of written notice from Depositary, bearing the approval
of the Public Official, that the public funds on deposit, or a specified part thereof, have been repaid by Depositary,
or that the collateral exceeds 'II> of funds on deposit less funds insured by the Federal Deposit Insurance
Corporation, Trustee shall deliver all or the specified part of the securities, Or the proceeds from the maturities
thereof, to the Depositary.
6, SECURmES SUBSTITUTION. Trustee shall deliver specified securities to the Depositary upon Trustee's
receipt of written notice from Depositary. bearing the approval of the Public Official, for the substitution oi
specified securities, together with the securities to be substituted, Provided, securities issued by the United States
Government may be withdrawn, and other securities issued by the United Stales Government. equal in value at
the time of substitution. may be substituted therefor without the written approval of the Public Official.
7, NOTICE OF SUBSTITUTION. Trustee agrees to inform Public Official promptly upon each substitution of
United States Government securities not requiring the consent of Public Official,
8. ADDITIONAL DEPOSITS. Additional qualifying securitie5, to be approved by the Public Official. may be
delivered by Depositary to Trust~ from, time to time, to be held and delivered by Trustee as in this agreemet
provided, . ("
9. ClAlMS ON PARTIES. No expenses, charges or compensation of the Trustee shall be an obligation of the
Public Official, nor become a lien upon the securities held by Trustee.
.
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