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HomeMy WebLinkAboutOrdinances Book 11, Page 515, No Resolution Number515 A RESOLUTION AUTHORIZING THE CITY OF PADUCAH, BY AND THROUGH ITS MAYOR PRO TEM, STUART JOHNSTON, TO ENTER INTO AGREEMENTS WITH THE PADUCAH BANK, THE CITIZENS SAVINGS BANK AT PADUCAH AND THE PEOPLES NATIONAL BANK, PROVIDING FOR THE PLEDGING BY SAID BANKS OF DIRECT AND FULLY GUARANTEED OBLIGATIONS OF THE UNITED STATES OF AMERICA AS COLLATERAL SECURITY FOR THE FAITHFUL CARE AND PAYMENT OF ALL DEPOSITS MADE IN SAID BANKS AND OF ALL FUNDS ENTRUSTED TO THEM, FIXING THE AMOUNT OF SUCH SECURITIES TO BE PLEDGED AND PRESCRIBING THE TERMS AND CONDITIONS TO BE CONTAINED IN EACH OF SAID AGREEMENTS WHEREAS, the City of Paducah, Kentucky, has heretofore designated the Paducah Eank, the Citizens Savings Bank at Paducah and the Peoples National Bank as depositories of all public funds of the city; and WHEREAS, said banks have been selected upon the condition that they shall either pledge directly to the city or place in escrow bonds or other direct and fully guaranteed obligations of the United States of America in amounts specified herein for each of said banks as collateral security for the faithful care and payment of all deposits made in said banks hand of all funds entrusted to them; NOW THEREFORE, BE IT RESOLVED BY THE EOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the City of Paducah, by and through its Mayor Pro Tem, Stuart Johnston, enter into and execute with the Paducah Bank of Paducah, Kentucky, and the United Bank and arust Company of St. Louis, Missouri, as Trustee, an agreement providing that the Paducah Bank shall deposit with the United Bank and Trust Company, as Trustee, United States Treasury Bonds in the sum of $25,000.00 as security for the faithful care and payment of all deposits made at said bank by the City of Paducah and of all funds entrusted to it, said agreement to be in words and figures as follows, to -wit: "That for.and in consideration of the Premises and of the sum of Five (?5.00) Dollars cash in hand to each of the Parties hereto paid, the receipt whereof is hereby acknowledged, the parties hereto do mutually covenant and agree as follows: FIRST. The said Bank (meaning the Paducah Bank) hereby agrees that the said securities shall be held by the said Trustee '(meaning the United Bank and Trust Company) for the protection of the public money deposited by the Treasurer with the said I 516 Bank (hereinafter called ?deposits() until all of said public money so deposited has been properly paid over and accounted for by the said Bank. SECOND. In the event of any default in the payment of the said deposits or any part thereof by the said Bank, upon the de- mand of the said Depositor, the said Trustee shall, upon receipt of a written notice made by the said Depositor that there has been a breach of'the depository contract and upon demand in writing for the securities or any part thereof, forthwith surrender said securities to the said Depositor. Upon surrender of a sufficient amount of such securities as may fully protect the said Depositor from loss, the said Bank authorizes and empowers the said Depositor to sell, transfer, by endorsement or otherwise, and deliver all or any part of such securities, in such manner as it may elect, for the satisfaction of any loss arising by reason of a breach of depository contract and out of the proceeds of such sale, after paying the expenses of sale, and retaining a sum sufficient to reimburse City of Paducah for such breach of the depository con- tract by the said Bank, the balance, if any, shall be paid over !to said Bank, and any securities remaining unsold in the hand of ;the said Depositor shall thereupon be returned to the said Bank. THIRD. It is expressly understood and agreed that the said Bank shall have the right to substitute other securities for the securities hereinabove mentioned, provided the securities so to be substituted are satisfactory in kind and amount to the said Depositor, and the said Trustee is hereby authorized to permit such substitution upon written authority of the said Depositor. Any securities so substituted shall be held by the said Trustee under the same terms and conditions as though included in the securities originally deposited with it hereunder. - FOURTH. It is further expressly understood and agreed that in the event the said Depositor shall desire to increase the amount of said deposits beyond the amount for which the securities then in the hands of the said Trustee afford security in accordance with the prov$sions of law, and the said Bank desires to receive such increased deposits, then and in the event the said Bank may deliver to the said Trustee, to be held in accordance with the terms hereof, such additional securities as may be satisfactory to and approved by the said Depositor, and all such additional securities shall be held by the said Trustee upon the same terms and con- ditions as though included in the securities originally deposited ;with it hereunder. i I �I 517 FIFTH. The said Bank may, from time to time, with the written consent of the said Depositor, withdraw from the said 10 Trustee, such portion as it may desire of the securities then �j held by the said Trustee, provided the value of the securities then remaining in the hand of the said Trustee shall not be less than the amount of the deposits then remaining in said Bahk. SIXTH. It is further expressly understood and agreed that so long as there is no default in the payment of the said -deposits, the said Bank shall be entitled to collect all interest 'and other income which may become due on or from the securities in the hands of the said Trustee, and the said Trustee is hereby authorized, empowered and directed to pay and deliver over to the said Bank, upon demand, all such interest and other income, or the coupons attached to any bonds included in the collateral, as same mature. SEVENTH. It is further expressly understood and agreed that the said Bank may terminate this agreement at any time by paying over all of said deposits to the said Depositor, and in the event of such -payment and the submission to the said Trustee of the written statement of the Depositor to that effect, all securities then held by said Trustee under this agreement shall forthwith be delivered to the said Bank, and this agreement (shall thereupon be terminated. EIGHTH. The said Trustee hereby acknowledges receipt of i ithe securities hereinbefore mentioned and described, and agrees to hold and deliver the same, together with any securities which I ,may be substituted therefor or added thereto, in accordance with the terms of this agreement. NINTH. The said Bank -and said Depositors, by the execution hereof, hereby declare the said Trustee as acceptable to and approved by them, respectively, as..the disinterested banking institution or fiscal officer with which the said securities are to be deposited in escrow. TENTH. All fees and charges of the Trustee for services under this agreement shall be paid by the bank. ELEVENTH. The Board of Directors of the Bank has authorized the pledging and delivery of the above described isecurities to the Trustee and the execution of this agreement on (behalf of the Bank by resolution duly adopted, a certified copy of which is hereto attached." SECTION 2. That the City of Paducah, by and through its Mayor Protem, Stuart Johnston, enter into and execute with the Citizens 518 Savings Bank at Paducah and the Citizens -Fidelity Bank and Trust ,Company of Louisville, Kentucky, an agreement providing that the Citizens Savings Bank at Paducah shall deposit -with the Citizens- IFidelity Bank and Trust Company, United States Treasury bonds in i the sum of $ZOO,000.'O0 as security for the faithful care and ,payment of all deposits made at said bank by the City of Paducah land of all funds entrusted to it, said agreement to contain the same terms and conditions which are set forth in Section 1 of this resolution. SEC TION 3. That the City of Paducah, by and through its Mayor Protem, Stuart Johnston, enter into and execute with the Peoples National Bank of Paducah, a depository agreement containing the following terms, conditions and covenants; "The Bank shall deposit with and pledge directly with the City of Paducah bonds or other direct obligations of the United States of America and/or cash in the amount of Twenty-five (Thousand (,25,000.00) Dollars to be held by said city upon the same terms and conditions and for the same purposes set forth in Section 1 of this Resolution." SECTION 4. All resolutions and parts of resolutions in conflict herewith are, to the extent of such conflict, hereby repealed. SECTION 5. This Resolution shall be in full forde and effect from and after its adoptlo Passed by the Board of Commissioners, May 4, 1948 Recorded by Sarah Thurman, City Clerk, May 4, 1948.