HomeMy WebLinkAboutORD 86-39 i
ORDINANCE NO.
ENTITLED AN ORDINANCE DIRECTING THE USE AND
INVESTMENT OF ALL FUNDS RECEIVED IN THE
DISTRIBUTION OF THE BANKRUPTCY OF E.S .M.
GOVERNMENT SECURITIES, INC . ; AND PROVIDING FOR
S EVE RABI L ITY.
WHEREAS, the city has enacted an ordinance authorizing
the City Manager to execute an agreement with Thomas Tew, Trustee,
for E.S .M. Government Securities, Inc. which will allow the
distribution of Beaumont' s pro rata share of such estate; and,
WHEREAS, the agreement with Thomas Tew 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 bankruptcy of E.S .M.
Government Securities, Inc . and place such 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 investments shall be retained in such segregated account.
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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 . Council shall not
authorize the expenditure of such funds until such time as the
order of distribution in the bankruptcy of E. S .M. 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 day of 1986.
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Mayor -
2 -
D -,90