129.09 POOLED COLLATERAL SECURITY.

   With the written approval of the Director of Finance, an Eligible Depository in lieu of pledging Collateral Securities may provide collateral for Public Moneys deposited pursuant to this chapter through a single pool of Collateral Securities pledged for deposits of all public moneys held by the Eligible Depository, subject to the following conditions:

   (a)   Collateral Securities committed to the pool must have a face value at least equal to one hundred ten percent (110%) of all Public Moneys on deposit with the Depositor Bank including the amount covered by Federal Deposit Insurance.

   (b)    The Collateral Securities constituting the pool shall be segregated in a separate escrow account as described in Section 129.07 hereof.

   (c)   If the Eligible Depository fails to pay over any part of the deposits due the City, the Director of Finance may request the Trustee to deliver to the Director of Finance any of the Collateral Securities on deposit provided the value of the Collateral Securities delivered shall not exceed the amount necessary to produce an amount equal to City deposits made and not paid over, less the portions of such deposits covered by Federal Deposit Insurance, plus any accrued interest due on the deposits; in any event, the value of such Collateral Securities shall not exceed the City’s proportional interest in the face value of the pool as of the date of the Eligible Depository’s failure to pay over the deposits. The Director of Finance shall have the option to sell the Collateral Securities in such manner as determined by the Director of Finance. Any surplus remaining after deducting the amount due the City and expenses of the sale shall be paid to the Trustee.

   (d)   Within thirty days of the end of each calendar quarter, the Trustee shall provide a detailed statement setting forth the face value of all Collateral Securities pledged to the pool and the total of all Public Moneys on deposit with the Eligible Depository.

   (e)   If at any time the face value of the pool is less than one hundred ten percent (110%) of all deposits of Public Moneys held by the Eligible Depository, the Eligible Depository shall immediately add Collateral Securities to the pool sufficient to bring the face value of the pool to at least one hundred ten percent (110%) of all Public Moneys on deposit with the Eligible Depository.

   (f)   Failure of the Eligible Depository to abide by any of the provisions of this section shall be cause for its immediate suspension as an Eligible Depository for any Public Moneys. Collateral Securities held in a pooled escrow account may be substituted and exchanged in the same manner as described in Section 129.07.

      (Ord. 2004-178. Passed 12-7-04.)