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ORDINANCE NO. 10,911
AN ORDINANCE AMENDING SECTIONS 2 & 3 OF ORDINANCE NO. 1027671
SAME BEING "AN ORDINANCE PROVIDING THAT CERTAIN DESIGNATED
BANKS SHALL SERVE, SUCCESSIVELY, AS DEPOSITARIES OF ALL
MUNICIPAL FUNDS WHICH ARE UNDER THE EXCLUSIVE CONTROL OF
THE BOARD OF DIRECTORS "; DECLARING AN EMERGENCY; AND FOR
OTHER PURPOSES.
BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE
m ROCK, ARKANSAS:
rq SECTION 1. Section 2 of Ordinance No. 10,767 is hereby amended
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to read as follows:
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"Section 2. Each of said banks, prior to becoming a
ra depositary of municipal funds under this Ordinance, shall
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Q) execute with the City of Little Rock a written contract
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P4" upon the following form:
DEPOSITORY AGREEMENT
THIS AGREEMENT, between the City of Little Rock,
Arkansas (hereinafter called the "City "), and
(Name of Bank
(hereinafter called the "Depositary "),
WITNESSETH:
(a) The Depositary shall act as Depositary of
the City, under the authority of Ordinance No.
enacted by the City Board of Directors
on , 19 Insert in the blank
spaces the number and date of this ordinance7, for the
following term:
Here insert term of depository agreement
(b) During the entire term of this agreement,
the City shall maintain on deposit with the De-
positary all municipal funds which are under the
exclusive control of the Board of Directors; said
funds to be deposited with the Depositary in such
separate accounts as may from time to time be de-
signated for such purpose by the City Manager.
(c) All deposit accounts established with the
Depositary under the authority of this ordinance
shall be general checking accounts, and not time
deposits or savings accounts; and the Depositary
shall pay no interest on the balances maintained in
these accounts. All checks on these accounts shall
be drawn in the name of the City over the joint
signatures (either one of which may be facsimile)
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of the then City Manager and Director of Finance.
(d) The Depositary will not make any service
charges in connection with any deposit account
established under the authority of this ordinance.
(e) From time to time the City Manager may de-
termine the portion of each deposit balance estab-
lished hereunder which, in his opinion, should be
withdrawn from such account and invested; and this
amount shall be certified by the City Manager to the
Depositary with instructions that the sum so certi-
fied be invested by the Depositary in short term
United States Treasury obligations of a type speci-
fied by the City Manager. The Depositary shall there-
upon make such investment as directed by the City
Manager; and the securities represented by such in-
vestment shall be held by the Depositary in trust for
the City, as evidenced by custody receipt to be exe-
cuted by the Depositary and delivered in each instance
to the City Manager. The Depositary will make no
charges for its services in handling these investments;
and the earnings on each investment will be credited
to the City in such deposit account as may be designated
for such purpose by the City Manager.
(f) The Depositary will not be required to
absorb any out of pocket expense, on account of
non -par checks or otherwise, which it does not
absorb in handling the deposits of its other customers.
EXECUTED in duplicate on this day of
19 "
SECTION 2. Section 3 of Ordinance No. 10,767 is hereby amended
to read as follows:
"Section 3. As each of the above named banks becomes eli-
gible to serve as depositary hereunder, the Mayor and the City
Clerk (without further authority from the Board of Directors)
shall execute with said bank a Depository Agreement upon the
form above set out; such contract to be executed by the Mayor
and City Clerk in the name of the City and over their official
signatures. The City Manager and the Director of Finance
shall have authority to draw checks, over their joint signa-
tures (either one of which may be facsimile), for proper
municipal purposes upon all deposit accounts established here-
under; and in the instance of each such withdrawal the deposi-
tary will be protected in assuming that such withdrawal is law-
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fully authorized. The City Manager (without further authority
from the Board of Directors) shall have exclusive authority to
direct the investment of the deposited funds and take such
other steps as may be necessary to effectuate the purposes
of the successive Depository Agreements executed under the
authority of this ordinance."
SECTION 3. It has been determined that there is an immediate
need for the efficient administration of public moneys and safe
guards on the expenditure thereof and that this ordinance will
accomplish this purpose; now therefore, an emergency is hereby
declared to exist and this ordinance being necessary for the
preservation of public peace, health and safety shall be in full
force and effect from and after its passage and approval; and
all ordinances and parts of ordinances in conflict herewith are
hereby repealed.
PASSED: March 2, 1959
ATTEST: APPROVED:
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City Clerk Mayor.