All public moneys deposited in eligible depositories shall be secured by collateral securities pledged at market value in an amount equal to at least one hundred percent (100%) of the amount of the public moneys deposited less any amount covered by Federal Deposit Insurance.
Any collateral securities pledged pursuant hereto shall, at the option of the Director of Finance, be either delivered to the Director of Finance or deposited in an escrow or a trust account with a trustee for safekeeping for the account of the Municipality. Any fees and expenses of the trustee shall be paid by the eligible depository.
When collateral securities have been deposited in such an escrow or trust account, the eligible depository may substitute or exchange other collateral securities having a current market value equal to or greater than the current market value of the collateral securities then on deposit and for which they are to be substituted for or exchanged if the Director of Finance gives a written authorization either for that substitution or for the exchange or substitution on a continuing basis during a specified period without prior approval of each substitution or exchange. The Director of Finance shall send written authorization to the eligible depository stating that substitution may be made on a continuing basis during the specified period and under the conditions specified therein. The eligible depository shall notify the Director of Finance of any substitution or exchange of collateral securities. Upon request of the Director of Finance, the eligible depository shall furnish a detailed statement setting forth the face and market values of all collateral securities pledged.
The Director of Finance may require additional collateral securities to be delivered or deposited to provide for any depreciation that may occur in the market value of any of the collateral securities so delivered or deposited.
(Ord.1986-46. Passed 10-28-86.)