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HomeMy WebLinkAboutRes1991-150 . . . 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 / I . /- , /C~ \ ~'I ~( ':t. c''L-tc;(j,;{v . /'h. Donald W. criPP~~Mayor AYES: NOES: ABSENT: ABSTAIN: Crane, Cripps, Krasnansky, Swartz, White None Burgess, Dunham None -1- . CITY OF SEWARD, ALASKA RESOLUTION NO. 91-150 ATTEST: . . (City Seal) APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska /AMJ fLP ~ Fred B. Arvidson City Attorney -2- '1 t - )(S Lf- P,O, BOX 167 SEWARD. ALASKA 99664 ~.'V".' ( , " ,.,- . Main Office (907) 224-3331 . Police (907) 224-3338 . Harbor (907) 224-3138 . Fire (907) 224-3445 . Telecopier (907) 224-3248 CITY OF SEWARD . 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 .A. . 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 .B. 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. . B. . 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. . 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. . Banking Services Contract Page 3 . IN WITNESS WHEREOF, the parties have executed this contract on the dates shown below. THE CITY OF SEWARD ANCHORAGE THE FIRST NATIONAL BANK OF ~~ City anager 8~~ 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 . 7/\MJ. N~ Fred B. Arvidson City Attorney (city seal) . Banking Services Contract Page 4 Appendix "A" . Proposal for providing Banking Services For CITY OF SEWARD . Prepared by: FIRST NATIONAL BANK OF ANCHORAGE December 2, 1991 10:00 a.m. . . . . 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. Page 1 . . . 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. Page 2 . 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 A sent c. INVESTMENT SERVICES Our bank will provide investment counselling and effect purchase and sell orders as directed. . 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 . 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. Page 3 . 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. . 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 . 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. Page 4 J. CASHIER'S IECKS The City of Seward may purchase Cashier's Checks as required without additional charge. . 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 . 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. . 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. Page 5 . . . 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: Page 6 OPTION-I MAGNETIC TAPE MEDIUM . 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 . * 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. . Page 7 OPTION Ir PC BASED ACH ORIGINATION . 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: . 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. . 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 . 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 . 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. . 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 . . . 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 f-- ...... r- I"" . 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. . 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. 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