HomeMy WebLinkAboutReso 1953-1485 xt 'a 4± ..
•
x 9
RESOLUTION NO. 1485
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING AGREEMENT
WITH BANK OF AMERICA, NATIONAL, TRUST &,
SAVINGS ASSOCIATION FOR APPOINTMENT- OF
FISCAL. AGENTS .FOR PAYMENT OF.RECREATIONAL
FACILITIES BONDS-1954.
THE CITY COUNCIL OF THE CITY OF CHULA VISTA; DOES HEREBY RESOLVE
AS FOLLOWS :
That certain agreement between the CITY OF CHULA VISTA
and BANK OF AMERICA NATIONAL',TRUST AND SAVINGS ASSOCIATION,
dated December 8th, 1953, a copy of which is attached hereto
and by 'this reference incorporated herein, is 'hereby approved,
and the Mayor and City Clerk of the City of Chula Vista are
hereby authorized and directed to execute the same for and on
behalf of the City of Chula Vista.
• • A , r
N ! 5,.'
v -p 4
ADOPTED AND APPROVED by the CITY COUNCIL of the CITY OF
CHULA VISTA, CALIFORNIA, this 8th day of December , .,19 53 ,
by the following vote, toy-wit;
AYES: COUNCILMEN .iesland, Hobel, ialferty.))eWolfe
NAYS: COUNCILMEN None
ABSENT: COUNOILMEN Logan :•�.c.,. -.
4,'t L tit ,. y
% J.-
_•st _." A . 0.1..,.
T y o r o 7 e C I y o� C ' '
s
ATTEST: ; ,°'•
bat, r . w, ,
by
Deputy ,
STATE OP CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, , City Clerk of the
City of Chula Vista, California, DO HEREBY CERTIFY that the above
and'foregoing is a full, true and correct copy of Resolution
No. , and that the sane has not been amended or
repealed.
DATED:
City Clerk
by
'eputy
A G R E E M E N T•
•
THIS AGREEMENT, made and entered into this8thday of December,
1953, by and between the CITY OF CHULA VISTA, of the State of California,
•
hereinafter called the "City", and BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, a national banking association, hereinafter called
the "Bank of America";
W I T N E S S E T H, T H A T
WHEREAS, bonds issued by the City or by a department thereof pro-
vide, or may provide in some instances, that the same are payable, and in
• some instances that the same are collectible, as to principal and interest
• at Bank of America, or at a designated bank or banks in the City of New York,
State of New York, or at a designated bank or banks in the City of Chicago,
• State of Illinois, and in some instances that the same are payable or
collectible as to principal and interest at the office of the Treasurer of
the City of Chula Vista, or at designated offices of Bank of America, or
•
••
at a designated bank or banks in the City of New York, State of New York,
•
or at a bank or banks in the City of New York, State of New York designated
•
as a fiscal agent for such purpose, or at a designated bank or banks in the
City of Chicago, State of Illinois, or at a bank or banks in the City of
Chicago,. State of Illinois, designated as a fiscal agent for such purpose;
and
•
WHEREAS, it is desirable that there be an arrangement whereby such
• bonds, or coupons pertaining thereto, may be presented for payment or
•
collection at, and be honored by, said Ban* of America or said designated
bank or banks in the City of New York or in the City of Chicago, or by
.. designated fiscal agents in the City of New York or in the City of Chicago;
and
WHEREAS, it is mutually desirable that an Agreement be entered into
v53 03S
•
•
•
between these parties to provide for such services;
NOW, THEREFORE, the parties above named in consideration of the
mutual covenants herein contained, agree as follows:
SECTION 1. Upon written request of the Treasurer of the City of
Chula Vista, hereinafter called the "Treasurer", the Bank of America shall
cause any- bonds of the City, or department thereof, and any coupons pertain-
ing to such bonds, to be honored in accordance with the terms thereof, upon
the presentation of the same for payment or for collection upon maturity, to
Bank of America, or to any of the banks in the City of New York, or in the
City of Chicago named in this Section which may be designated by the City,
or department thereof, for that purpose, and shall cause to be made available,
at any such bank so designated, all funds necessary in order so to honor such
bonds and coupons; provided that this section shall not in any instance •
require payment or disbursement of any funds in excess of the anmunt then on
deposit in the "Bond and Coupon Redemption Account", hereinafter referred to,
nor shall this section require payment or disbursement of interest on bonds
registered as to principal and interest. The banks in this Section referred
•
to are the following: The National City Bank of New York, Bankers Trust
•
Company, The Chase National Bank of the City of New York, Manufacturers Trust
Company, and Guaranty Trust Company of New York, all in the City of New York,
•
and Continental Illinois National Bank and Trust Company of Chicago, City
National Bank and Trust Co., The First National Bank of Chicago, and Harris
Trust and Savings Bank, all in the City of Chicago.
•
SECTION 2. When any bond or coupon is honored pursuant to Section
• 1 hereof, Bank of America forthwith shall Cause such bond or coupon to be
cancelled,' or shall cause payment of interest to be noted on the bond in
accordance with the terms thereof.
•
SECTTTION 3. The City shall from time to time deposit with the
-2-
Commercial Department of Bank of America, Chula Vista Branch,
in an account designated "Bond and Coupon Redemption Account" sums in cash
such that there shall at all times be on deposit in said account an amount
•
not less than the total amount paid or disbursed pursuant to Section 1 hereof,
and not theretofore reimbursed to Bank of America pursuant to Section 4 here-
of; provided, however, the amount so on deposit shall never on any date
•
unreasonably exceed the total amount so paid or disbursed pursuant to Section
1 and not theretofore reimbursed to Bank of America, plus the total amount,
payment or disbursement of which will be required within thirty days next
following such date. The Treasurer may at any time withdraw any amount in
said account in excess of the minimum requirement in this Section above set
•
forth.
As security for funds deposited by the Treasurer in said "Bond and
Coupon Redemption Account", Bank of America shall pledge with the Treasurer,
treasury notes or bonds of the United States, or those for which the faith
and credit of the United States are pledged for the payment of principal and
interest, or of this State or of any county, city and county, city, town
metropolitan water district, municipal utility district, municipal water
district, water district, water conservation district or irrigation district
" •• within this State, or registered warrants of this State, which notes, bonds
or registered warrants shall be approved by the Treasurer, and, as to
'- • eligibility, by the City Attorney of the City of Chula Vista.
{ The market value of the securities so pledged shall be at least
10% in excess of the amount of the deposit secured thereby, and the principal
amount of the securities so pledged shall'be not less than the amount of the
deposit secured thereby. All securities so pledged shall be deposited with
the Treasurer.
If, in any case, or at any time, the securities pledged pursuant
-3-
•
•
•
•
to this Section, or any of such securities, be deemed not satisfactory by
the Treasurer, then the Bank of America shall pledge such additional securities
as may- be satisfactory to him. In addition to the requirements of this
Section, Bank of America shall provide to the Treasurer any additional
security which may be required by law. •
Securities pledged pursuant to this Section, or any part of such
securities, may be withdrawn or released upon the written consent of the
Treasurer, provided there be retained in pledge securities having a principal
amount not less than the amount on deposit in said "Bond and Coupon Redemption
•
Account", and having a market value at least l0a in excess of the amount so
on deposit in said Account.
In the event that the Bank of America shall fail to pay over, in
accordance with the terms of this agreement, funds deposited in said "Bond
and Coupon Redemption Account", or any portion thereof, the Treasurer is
• hereby irrevocably authorized and empowered forthwith to recover upon the
securities pledged pursuant to this Section, or convert them into money and
.. • to apply the proceeds thereof in reimbursement to the City, or any department
thereof, of the amount on deposit in said account.
The Bank of America shall have the right to collect all interest on
all securities pledged pursuant to this Section, except in cases where the
securities are liable to sale or are sold or converted under the provisions
• of law relating thereto and the terms of this agreement.
SECTION !,. When any money has been paid or disbursed pursuant to
Section 1 hereof, Bank of America shall forthwith reimburse to itself the
• amount thereof by charge against said "Bond and Coupon Redemption Account."
Charges against said account by way of such reimbursement shall
be given effect in determining the amount of collateral required to be de-
posited by Bank of America pursuant to Section.3 hereof only when such
•
• • -4-
•
•
charges have been supported by delivery to the Treasurer of cancelled bonds
or coupons, or the Treasurer shall have been advised of such payment or 7
disbursement by the Bank of America,- or the New York bank or the Chicago
bank by which such payments or disbursements were made.
Bank of America shall render to the Treasurer weekly statements
as of the close of business at the end of each week, showing all amounts
• paid or disbursed pursuant to Section 1 hereof, and shall therewith
surrender all bonds and coupons cancelled pursuant to Section 2 hereof.
SECTION 5. The City shall pay to the Bank of America fees for
•
• the payment or disbursement of interest pursuant to this contract at the
• • rate of 7z¢ for each interest coupon honored at maturity.
. . SECTION 6. The City shall pay to the Bank of America fees for the
payment or disbursement of principal at maturity pursuant to this contract
at the rate of 1/5 of 1% of the principal amount of bonds so paid.
SECTION 7. In addition to the fees provided in Sections 5 and 6,
the City shall reimburse the Bank of America for stationery, postage, express,
•
• insurance, and other incidental out of pocket expenses necessarily incurred
•
• by said Bank of America in the performance of its duties as herein provided.
SECTION 8. The Bank of America shall render a monthly statement•
to the Treasurer showing the amount of interest paid or disbursed pursuant
to Section 1 hereof, and the principal amount of the bonds honored pursuant
to Section 1 hereof, together with a statement of the amount of fees due
to said Bank of America under this agreement, and all incidental expenses
for which reimbursement is claimed pursuant to Section 7 hereof. Upon
receipt of such statement the Treasurer shall pay to the Bank of America all
fees due, under this agreement and shall reimburse said Bank of America in•• accordance with Section 7 hereof.
-5-
•
SECTION 9. During the term of this agreement the City may employ
the services of other banks for the purposes herein set forth, either con-
-
currently with, or exclusive of, the services contemplated to be rendered
hereunder by Bank of America, and this agreement shall apply only to such
transactions regarding bonds of the City, or department thereof, or coupons
pertaining to such bonds, as the Treasurer shall specify in writing.
SECTTION 10. During the term of this agreement, the City may
designate one or more banks in the City of New York or City of Chicago,' at
which bonds. of said City, or of a department thereof, or coupons pertaining
to such bonds, may be-payable, and thereupon Bank of America shall cause
such bonds or coupons to be paid or honored as provided by Section 1 of
•
this agreement; provided,.•however, that no bank in the City of New York,
State of New York, or in the City of Chicago, State of Illinois, shall be
designated unless said Bank of America has satisfactory arrangements with
such New York bank or such Chicago bank to enable it to
. .. ag perform the services
provided by this agreement, and provided further that such designation shall
not be made until such time as a satisfactory agreement has been entered
• into by the said Bank of America and such New York bank or Chicago bank with
respect to the services to be performed under this agreement.
SECTION 11. At least ten (10) days prior to the first payment or
disbursement of principal or interest on any issue of bonds under the pro-
visions of this agreement, the City shall furnish one specimen bond of each
interest rate of such issue to Bank of America and to the designated bank
• or banks in the City of New York and City of Chicago.
SECTION 12. The Treasurer upon six months written notice to Bank
•
of America, may terminate any request for the performance of services pur-
suant to this contract.
SECTION 13. Bank of America upon six months written notice to
-6-
the Treasurer, may terminate this agreement, provided, however, that upon
default by the City under any of the provisions of this agreement, or upon
default by the City, or department thereof in the payment of principal or
' interest of any issue or issues with respect to which Bank of America has
undertaken or performed any services as required to be rendered by Section
1 hereof, Bank of America may immediately terminate this agreement in its
entirety upon giving the Treasurer written notice.
IN WITNESS WHEREOF, the parties hereto have caused these presents
to be duly executed, the day and year first above written.
CITY OF CHULA. VISTA
)fe-6-75 i �
By
BANK OF A ERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION
__;:2 ,
By
rus I ficer
By
• Assistant Trust Officer
. -7-