When the depository has deposited eligible collateral with a custodian for safekeeping, the depository may at any time substitute other eligible collateral having a current market value equal to or greater than the current market value of the eligible collateral then on deposit and for which substitution is to be made, provided that:
(a) The depository may make substitution of eligible collateral on a continuous basis without prior approval of each substitution until the Director of Finance shall advise the depository that it may no longer do so. The procedure for notice of substitution is described in Section 192.20 of the Toledo Municipal Code.
(b) If substitution no longer can be made without prior approval, the depository shall thereafter notify the Director of Finance and the custodian of each intended substitution.
(c) If the Director of Finance objects to any such substitution, the custodian shall be notified as provided in Section 192.20 of the Toledo Municipal Code. The Director of Finance must give notice to the custodian of any objection to the proposed substitution within ten business days of the date of mailing or delivery of the notice of substitution. Failure so to object shall waive the right to object by the Director of Finance.
(d) Should a depository fail to notify the Director of Finance of any substitution of eligible collateral, the Director of Finance shall notify the depository of such violation and upon a subsequent violation, the depository may be removed from the list of depositories maintained pursuant to Section 192.16 of the Toledo Municipal Code.
(Ord. 366-86. Passed 5-20-86.)