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HomeMy WebLinkAboutORD 43-JENTITLED AN ORDINANCE AUTHORIZING TIIE CITY OF BEAUMONT TO SELECT ANY BANKING CORPORATION OR CORPORATIONS, ASSOCIATION OR ASSOCIATIONS, OR INDIVIDUAL BANKER OR BANKERS DOING BUSINESS IN THE CITY OF BEAUMONT TO BE SELECTED AS A DEPOSITORY FOR CITY FUNDS; PROVIDING TEE METHOD OF SUCH SELECTION, PUBLISHING OF NOTICE, THE AWARD AND BOND, FIXING THE -AMOUNT OF THE BOND AND AUTHORIZING THE CITY COMMISSION TO PERMIT SUCH DEPOSITORY OR DEPOSITORIES TO PLEDGE CERTAIN SECURITIES IN LIEU OF SAID BONDS; AND AUTHORIZING THE CITY TO CONTRACT WITH SUCH DEPOSITORY IN REFERENCE TO THE SECURITIES TO BE PLEDGED IN LIEU OF BOND; PROVIDING FOR THE QUALI- FICATION AND FINANCIAL CONDITION OF SURETIES AND SETTING FORTH THE CONDITIONS UNDER WHICH THE CITY COMMISSION MAY REQUIRE ANY BOND OR ADDITIONAL SECURITIES, PROVIDING FOR THE SUBSTITUTION OF SUCH - SECURITIES, REPEALING ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH, AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BEAUMONT, TEXAS: Sect on 1 The City Commission of the C authorized to receive sealed proposals funds from any banking corporation or or associations, or individual banker within the City of Beaumont that may d depository of the City of Beaumont. Section 2 ity of Beaumont is hereby for the custody of City corporations, association or bankers doing business esire to be selected as a Notice that such bids will be received shall be pub- 7_ished by the City Clerk not .less than one nor more than four weeks before the meeting of the City Commission, at which meeting such bids are to be opened and considered, in some newspaper published in the City. Section 3 Any banking corporation or corporations9 a.ssoc_i_ati on or associations, or individual banker or bankers doing business in the City of Beaumont,, desiring to be selected. as Depository for city funds, shall deliver to the City Clerk, on or before the day of such meeting designated by said published notice, a. sealed proposal stating the rate per cent upon daily balances that such bidaer offers to pay to the City of Beaumont for the privilege of being made the Depository of the funds of said City. All such proposals shall be securely kept by the City Clerk and shall not be opened until the meeting of the City Commission for the purpose of passing `upon the same, nor shall any other proposals be received after they',have been opened. SectS.on_ 4 Upon opening of sealed proposals submitted. the City Commission shall select as the Depository or Depositories of such funds the banking corporation or corporations, association or associations, or individual banker or bankers offering to pay to the City the largest amount for such privilege. The City Commission shall have the right to reject any and all bids and re -advertise for new proposals. Texas: and said City may accept said securities in lieu of such personal or surety bonds, which securities so pledged shall be deposited as the governing body may direct. It is provided, however, that such securities so pledged shall be approved as to kind and value by the City Commission® Section 6 V11hen the securities pledged by a. depository bank to secure the funds of the City of Beaumont shall be in excess of the amount required under the provisions hereinabove stated, the City Commission shall permit the release of such excess, and when the funds of the City depository bank shall, for any reason, increase beyond the amount of securities pledged, said depository bank shall immediately pledge additional securities with the City Com- mission so that the securities pledged shall at no time be of a value of less than the total amount of city funds on deposit in said_ depository bank. The determination of such value shall be in the discretion of the City Commission whose decision shall be final and binding on such depository® The right of substitution of securities shall'be granted to depositories, provided the securities substituted meet with the requirements of Section 5 hereinabove, and are approved by the City Commission. Upon the request of a depository bank, the City Commission shall surrender interest coupons or other evidence of interest when due on securities deposited with said governing body by such depository bank, provided said securities remaining pledged are anple to meet the requirements hereinabove set forth in Sections, and of the City Commission. Section 7 The condition of the personal bond or bonds or surety company bonds, or contract for securities pledged as hereinabove provided., shall be conditioned for the faithful performance of all the duties and obligations devolving by law upon such depository, and for the payment upon presentation of all checks drawn upon said depository by the City Clerk and countersigned by the City Tanager of the City, and that said. City funds shall be faithfully kept by said depository and accounted for according to law. Section 8 It shall be the duty of the City Commission to investigate and inquire into the solvency of each and every surety on any personal bond or bonds so filed by such city depository and accepted by the City Commission and approved as required by law, at least twice during each andevery year such bonds are effective and in force., and for that purpose shah have authority to require each surety to render an itemized and verified financial statement under oath showing his true financial condition. If any such statement or statements indicate that any of said. sureties have become insolvent., or their net worth depreciated below the amount required by law as such sureties, or if any of the assets listed are shown to be, or are known to be depreciated, or their value in any way impaired, then and in any of such events the City Commission shall require a. new bond meeting fully the requirements of this ordinance; and in case of a bond or bonds the sureties on which are required to own unencumbered and non --exempt real estate, as herein provided., such statement shall show each tract of land owned by each surety and the valu.ethereof., and if the statement provided for herein shall indicate that any of such lands have been disposed of or encumbered and the value of the remaining unencumbered or non-exempt lands shall not be sufficient to meet the requirements of this ordinance, then the said City Commission shall require a new bond meeting fully _the requirements neem necessary Tor Lne protecrion or `ane L1-cy, investigate an inquire into the solvency of any surety company or companies issuing a bond or bonds for any depository, and to investigate the value of any of the securities that may be pledged by such depository in lieu of bond; and such City Commission may require any such depository, if it deems advisable, to execute a new bond, Ior to deliver into pledge additional or other securities. If said new bond or securities required by the City Commission for any reason as herein specified be not filed within five days from the time of the service of a copy of order upon said depository, the City Commission may proceed to the selection of another depository in the same manner provided for the selection of a depository at the regular time for such selection® Section 9 Nothing in this ordinance shall in any manner limit, restrict or prevent the City Commission from requiring any depository to execute'a new bond at any time such City Commission may deem it necessary for the protection of the City. Section 10 All ordinances and parts of ordinances in conflict herewith are hereby expressly revealed.. Section 11 The fact that the 4-nnd. Legislature of the State of Texas at its first called session in 1931 amended the City Depository law as provided in the Revised Civil Statutes of Texas 1925, fixing the amount of bonds required of depositories and permitting the pledging of securities in lieu thereof, and the fact that the present ordinance of the City of Beaumont on that subject does not meet the requirements of the present law, creates an emergency and an imperative public necessity for the adoption of this ordinances It is, therefore, ordered that the rule requiring the reading of ordinances at three separate meetings of the City Commission be and the same is hereby suspended, and that this ordinance be in full force and effect from and after the date of its passage and lawful publication. Passed and approved by the unanimous vote of the City Commission on this the 8th day of November, Aa D. 1932® MA a. r, Cityk6f Beaumont; Texas,