With the approval of the Finance Director, a depository may provide collateral for City funds deposited pursuant to Section 107.04(b), (c), (d) and (e) through a single pool of securities pledged for deposits of all public funds held by the depository, subject to the following conditions:
(a) Securities committed to the pool must have a market value at least equal to fifty percent (50%) of all public moneys on deposit with the depository including the amount covered by federal deposit insurance.
(Ord. 2018-042. Passed 5-22-18.)
(b) The securities eligible for deposit in the pool shall be those described in Section 107.05.
(c) The securities constituting the pool shall be delivered to a Trustee as described in Section 107.06. Fees and expenses of the Trustee shall be paid by the depository.
(d) If the depository fails to pay over any part of the deposits due the City, the Finance Director may request the Trustee to deliver to the Finance Director any of the securities on deposit with the Trustee, provided the value of the 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 securities shall not exceed the City's proportional interest in the market value of the pool as of the date of the depository's failure to pay over the deposits. The Finance Director shall have the option to sell the securities in such manner as determined by the Finance Director. Any surplus remaining after deducting the amount due the City and expenses of the sale shall be paid to the depository.
(e) Within thirty (30) days of the end of each calendar quarter, the Trustee shall provide a detailed statement setting forth the face and market values of all securities pledged to the pool and the total of all public funds on deposit.
(f) If at any time the market value of the pool is less than 110% of all public deposits held by the Trustee, the depository shall immediately add securities to the pool sufficient to bring the market value of the pool to at least 110% of all public funds on deposit with the Trustee.
(g) Failure of the institution to abide by any of the provisions of this Section shall be cause for the immediate suspension of the institution as a qualified depository for any City funds.
(Ord. 2006-075. Passed 8-14-06.)