HomeMy WebLinkAboutRES 38 ZZ3Fzz
A R E S 0 L U T I 0 N
WHEREAS, The City of Beaumont and First
Security National Bank of Beaumont, Texas,
entered into a two year contract dated
July 7, 1967, whereby it was provided that
the said First Security National Bank of
Beaumont would pledge with the City Council
of The City of Beaumont certain securities
in lieu of giving bond as City Depository;
and,
WHEREAS, First Security National Bank wishes
to withdraw the following securities:
$700,000 U. S. Treasury Bonds, 2 1/2%, Due
2-15-67/72, held under receipt No. 107133;
and,
WHEREAS, there now remains no deposits of
The City of Beaumont for which security is
required in the First Security National Bank;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
That First Security National Bank of Beaumont be permitted to
withdraw the above described securities from First City
National Bank of Houston and a certified copy of this Reso-
lution shall constitute evidence of the authority of First
Security National Bank of Beaumont, Texas, to make said
withdrawal.
PASSED by the City Council this the 15th day of
September, 1970.
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Mayor -
i.NTER-OFFICE MEMORANDUM
CITY OF BEAUMONT, TEXAS
Date September 11, 1970
To: Charles V. Hill, City Manager
From: Dean Ransom, City Controller
Subject: Release of Securities - First Security National Bank
COMMENT:
The Code of Ordinances, Section 34-34, states that the depository
of the City shall qualify as City depository either:
1. Providing surety bond which shall be approved by the
City Council, or
Z. Pledge securities in an amount equal to the amount of
such city funds on deposit:
(Such securities include U. S. Government Obligations,
State, County, and City bonds)
When the securities pledged by a depository bank to secure the
funds of the City shall be in excess of the amount required under these
provisions, the City Council shall permit the release of such excess.
The First Security National Bank ha -s requested the release of
some $700, 000 U. S. Government Bonds which had been pledged in
accordance with the above mentioned ordinance. This pledge has been
in effect to cover investment made several months ago and which recently
matured. Since the First Securitylls no longer the designated depository
for the City, the matured' funds were transferred to the American Bank
and the release of this pledge is in order. The City has no more funds
on deposit at First Security (except Utility Collection Account) and I have
requested the Legal Office to prepare a resolution for Council action to
release their pledged funds.
Dean Ransom
City Controller
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