Number
020048
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution authorizing "Collateral Pledge and Bailment Agreement", and custodial services by the Federal Reserve Bank. (City Treasurer)
Analysis
Resolution authorizes the Treasurer (and appropriate City officers) to enter into a single, combined form of Collateral Pledge and Bailment Agreement with ___________ Bank ("Bank") to collateralize City deposits at Bank, where the Federal Reserve Bank will have custodial duties with respect to the collateral. It also adopts the agreement as a new standard form for future collateralization and bailment arrangements with other banks where a Federal Reserve Bank will act as custodian.
Body
Whereas, Section 34.07, Stats., authorizes the City to require any public depository to give security for any public deposits that exceed the amount of deposit insurance provided by an agency of the United States or by the Wisconsin Credit Union Savings Insurance Corporation and the coverage provided under sec. 34.08(2), Stats; and
Whereas, Common Council Resolution File No. 83-1883-C authorized the Treasurer, on behalf of the City, to execute separate forms of Collateral Pledge Agreements and Bailment Agreements similar to those annexed to that file (and herein referred to as the "Standard Separate Forms") in dealing with local banks and bailees; and
Whereas, Common Council Resolution File No. 990252 authorized the Treasurer, on behalf of the City, to alternatively execute a hybrid form of Collateral Pledge and Bailment Agreement similar to that annexed to that file (and herein referred to as the "Standard Hybrid Form") in dealing with banks and bailees; and
Whereas, The Federal Reserve Bank, under its Operating Circular 7 and Appendix C thereto, offers custodial services to hold book-entry securities as collateral for municipal deposits; and
Whereas, In those situations where the Federal Reserve Bank does so act as custodian, it requir...
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