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HomeMy WebLinkAboutOrdinances Book 13, Page 213, No Resolution Number213 / A RESOLUTION AUTHORIZING THE CITY OF PADUCAH, KENTUCKY, BY AND THROUGH ITS MAYOR, ROBERT C. CHERRY, TO ENTER INTO AGREEMENTS WITH THE PADUCAH BANK AND THE PEOPLES FIRST NATIONAL BANK & TRUST COMPANY OF PADUCAH, KENTUCKY, FOR THE PLEDGING BY SAID BANK OF DIRECT AND FULLY GUARANTEED OBLIGATIONS OF THE UNITED STATES OF AMERICA AS COLLATERAL SECURITIES FOR THE FAITHFUL CARE AND PAYMENT OF ALL DEPOSITS PLACED IN SAID BANK BY THE CITY 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 desig- nated The Paducah Bank and The Peoples First National Bank & Trust Company (under its former name of Peoples National Dank) of Paducah, Kentucky, as depositories of public funds of the City; and WHEREAS, said banks have been selected upon the condition that they would either pledge directly with 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 bank by the City, and of all.funds entrusted to them. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the City of Paducah, Kentucky, by and through its Mayor, Robert C. Cherry, enter into and execute with The Paducah Bank, Paducah, Kentucky, an agreement containing the following conditions and covenants: "THIS AGREEMENT, made and executed in triplicate this day of 1954, by and between the City of Paducah at Paducah, Kentucky, hereinafter sometimes called !?Depositor", party of the first part, The Paducah Bank, with its offices at Paducah, Kentucky, hereinafter sometimes called "Banklt, party of the second part, and the Lincoln Bank & Trust Company of Louisville, Kentucky, hereinafter sometimes called "Trustee", party of the third part. "WHEREAS the said Depositor wishes to deposit with the said Bank certain public moneys received by the Treasurer of the City of Paducah in his official capacity, but desires that the said Bank shall secure said deposits in accordance with the statutes in such cases made and provided, which the said Bank is willing to do, by the deposit with the Trustee of certain securities as hereinafter provided; and 211 "WHEREAS the selection of the said Bank as a depository of public moneys to be received by the Treasurer has been duly approved by the said Depositor, and the securities hereinafter pledged have been duly approved by said Depositor; and "WHEREAS in order to properly secure the said deposits, the said Bank has delivered to the said Trustee the following securities, to -wit: $200,000.00 United States Treasury 214% Bonds Due September 15 1959/56 "NOW THEREFORE, THIS AGREEMENT WITNESSETH: 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. That said Bank hereby agrees that the said se- curities shall be held by the said Trustee for the protection of the public money deposited by the Treasurer with the said Bank (hereinafter called "deposits") until all of said public money so deposited has been properly paid over and accounted for by the said Bank. "SECONDS 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 repositor 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 provisions 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. "FIFTH. The said Bank may, from time to time, with the written consent of the said Depositor, withdraw from the said Trustee, such portion as it may desire of the securities then 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 Bank. "SIXTH. 'It is further expressly understood and agreed that so long as there is no default of which the Trustee has been notified by the depositor 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 overr all of said deposits to the said Depositor, and in 215 216 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 the securities hereinbefore mentioned and described, and agrees to hold and deliver the same, together with any securities which may be substituted therefor or added. thereto, in accordance with I the terms of this agreement. "NINTH. The said Bank and said Depositor, by the execution I 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. I I "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 securities to the Trustee and the execution of this agreement on behalf of the Bank by resolution duly adopted, a certified copy of which is hereby attached. "WITNESS the following signature of the respective parties, as of the day and year first above written." SECTION 2. That the City of Paducah, Kentucky, by and through its Mayor, Robert C. Cherry, enter into and execute with The Peoples First National Bank & Trust Company of Paducah, Kentucky, a depository agreement providing that said bank shall deposit with the First National Bank, Louisville, Kentucky, as Trustee, bonds or other direct obligations of the United States of America, in the amount of $56,000.00 to be held by said Trustee upon the same terms and conditions set forth in Section 1 of this Resolution. SECTION 3. All resolutions and parts of resolutions in conflict i herewith are, to the extent of such conflict, hereby repealed. SECTION 4. This resolution shall be in full force and effect from and after its adoption. yor Passed by the Board of Commissioners October 26, 1954 Recorded by Sarah Thurman, City Clerk, October 26, 1954•