187720 •
I ORDINANCE NO. 18,772
2
3 A ORDINANCE TO AMEND LITTLE ROCK, ARK., REV. CODE
4 § 2 -194 (3) (1988) TO INCREASE THE COLLATERAL REQUIRED
5 TO SECURE CITY DEPOSITS AND TO BROADEN THE
6 COLLATERAL THAT MAY BE USED BY BANKS TO PROVIDE
7 DEPOSITORY SECURITY THEREFOR; AND FOR OTHER
8 PURPOSES.
9
10 WHEREAS, the City's current banking ordinance requires a banking
11 institution to collateralize the City's deposits with at least one hundred two
12 (102 %) percent of the daily account balances and limits the maturities of the
13 collateral securities not to exceed eighteen (18) months; and
14 WHEREAS, increasing the percentage of collateral required and
15 extending the maturity of the collateral securities will decrease the risk of loss of
16 funds and reduce the cost of banking services.
17 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF
18 DIRECTORS OF THE CITY OF LITTLE ROCK ARKANSAS:
19 Section 1. Little Rock, Ark., Rev. Code § 2- 194(3)(1988) is hereby amended
20 to read as follows:
21 (3) Collateralize at least one hundred four (104 %) percent of the
22 daily account balances with U.S. government and selected agency
23 securities of the U.S. government with maturities not to exceed five
24 (5) years, or one hundred ten (110 %) percent of the daily account
25 balances if the U.S. government and selected agency securities have
26 a maturity of five (5) or more years, or other instruments authorized
27 by Arkansas law.
[PAGE 1 OF 21
Ordinance
Banking Services
I Section 2. Severability. In the event any portion of this ordinance is
2 declared or adjudged to be invalid or unconstitutional, such declaration or
3 adjudication shall not affect the remaining portions of this ordinance, which shall
4 remain in full force and effect as if the portion so declared or adjudged invalid or
5 unconstitutional was not originally a part of this ordinance.
6 Section 3. Repealer. All ordinances and resolutions, and parts thereof,
7 which are in conflict with any provision of this ordinance are hereby repealed to
8 the extent of such conflict.
9 PASSED:
10 ATTEST:
11
November 4, 2002
12
13
14 Nan, City Clerk
15
16 APPROVED AS TO LEGAL FORM:
17
18
19
20 Thomas M. Carpenter, City A torney
21
22 //
[PAGE, 2 OF 21
Ordinance
Banking Services
APPROVED:
Ji4hley, Mayor