(a) Any bank or trust company designated by Council as a depository for City funds shall give bond, payable to the City, sufficient to secure the safety of the deposits and to protect the highest amount that may be on deposit, as may be directed by Council, conditioned to faithfully account for and pay over all moneys deposited therein, and the interest accruing thereon, when and as required by law. Provided, that a banking institution is not required to provide this collaterally secured bond, or other security in lieu of bond, if the deposits accepted are placed in certificates of deposit meeting the following requirements:
(1) The funds are invested through a designated state depository selected by the municipality;
(2) The selected depository arranges for the deposit of the funds in certificates of deposit in one or more banks or savings and loan associations wherever located in the United States, for the account of the municipality;
(3) The full amount of principal and accrued interest of each certificate of deposit is insured by the Federal Deposit Insurance Corporation;
(4) The selected depository acts as custodian for the municipality with respect to such certificates of deposit issued for the municipality’s account; and
(5) At the same time that the municipality’s funds are deposited and the certificates of deposit are issued, the selected depository receives an amount of deposits from customers of other financial institutions wherever located in the United States equal to or greater than the amount of the funds invested by the municipality through the selected depository.
(b) The bank or trust company designated as such depository shall receive no compensation for acting as the City Treasury. (Ord. 1542. Passed 7-12-16.)