HomeMy WebLinkAboutORD 87-27 ORDINANCE N0. - Z7
ENTITLED AN ORDINANCE DIRECTING THE USE AND
INVESTMENT OF ALL FUNDS RECEIVED IN THE
SETTLEMENT OF THE PENDING LITIGATION WITH
FIDATA CORPORATION AND PROVIDING FOR
SEVERABILITY.
WHEREAS, the city has enacted an ordinance authorizing
the City Manager to execute an agreement which will allow for the
distribution of Beaumont' s settlement monies in the pending
litigation with Fidata Corporation; and,
WHEREAS, the agreement provides for the return of such
funds should the order approving the distribution be successfully
overturned, amended or modified on appeal; and,
WHEREAS, the City Council wishes to assure that such
funds will be securely invested and pledged to provide a source
of monies from which to pay the contingent liability of such
event, and, to that end, desire to provide that such funds be
invested and set aside in escrow for such purpose;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1 .
That the City manager, as the Finance Director of the
City, is hereby directed to take possession of all funds
distributed to the City of Beaumont out of the settlement of the
pending litigation with Fidata Corporation and place funds in a
segregated account. Such funds shall be invested in accordance
with the investment policies of the City of Beaumont and all
interest earned on such investment shall be retained in such
segregated account.
Section 2.
That the funds shall not be expended for any purposes
whatsoever, other than periodic reinvestment, as necessary,
except upon authority of an ordinance of City Council. city
Council shall not authorize the expenditure of such funds until
such time as the order of the Court approving the settlement of
the pending litigation with Fidata Corporation becomes final and
is no longer subject to reversal, modification or action on
appeal or by writ of certiorari.
Section 3.
That if any section, subsection, sentence, clause or
phrase of this ordinance, or the application of same to a
particular set of persons or circumstances, should, for any
reason, be held to be invalid, such invalidity shall not affect
the remaining portions of this ordinance, and, to such end, the
various portions and provisions of this ordinance are declared to
be severable.
PASSED BY THE CITY COUNCIL of the City of Beaumont this
the 4_/� day of Q 1 " op 1987.
Mayor
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