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72-URE~OLUTION NO. 72 - U WHEREAS, pursuant to Federal Reserve Bank of Atlanta Operating Circular No. 20 dated November 15, 1963, as amended April 29, 1968, as further amended by Circular dated April 22, 1971, certain privi- leges and advantages are available to the City of Boynton Beach, Florida, in connection with issuance and maintenance of Treasury security by said Federal Reserve Bank as Fiscal Agent of the United States, all as more particularly set forth in attached copy of said Operating Circular No. 20; a~ WHEREAS, it is deemed to the best interest of the City of Boyn- ton Beach, Florida, to participate in and take advantage of said procedures: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH, FLORIDA: That Mayor Robert B. Effron, City Manager Travis E. Kiligore and City Finance Director Larry Artz be, and they are hereby authorized to serve as signatories on special custody account to be established with the Federal Reserve Bank of Atlanta, pursuant to the provisions of Opera- ting Circular No. 20 hereinabove described and, further, to execute any and all other documents related to or connected with the establishment and operation of such account. PASSED AND ADOPTED this ~ day of 6'~ Y~ t~ a-~ , A.D., 1972. ATTEST: City Clerk (CORP. SEAL) CITY OF BOYNTON BEACH, i~ORIDA Councilman FEDERAL RESERVE BANK OF ATLANTA OPERATING CIRCULAR No. 20 Amendment of April~22, 1971 SPECIAL CUSTODY To Banks and Others Concerned in the Sixth Federal Reserve District: Paragraph 16 of this operating circular is amended to read as follows: 16. Transferable Treasury Securities - Book-Entry Securities: (a)(l) In accordance with Section 306.117(a) of Subpart O of Treasury Department Circular No. 300. this Bank as fiscal agent of the United States may maintain Treasury bonds, notes, certificates of indebtedness and bills issued under the Second Liberty Bond Act by means of entries on the records of this Bank as such fiscal agent ("book-entry Treasury securities"l when such Treasury securities are deposited in accounts maintained by this Bank in its individual capacity and as to which securities this Bank in its indi~;idual capacity is to continue to maintain such deposits notwithstanding application of the book- entry procedure to such securities. Such accounts include, but.are not limited to. accounts in which Treasury securities are deposited (i) for member banks in this Districl for tlreir own account; (ii) as collateral for advances by this Bank in its individual capacity; (iii) as collateral to secure deposits in member banks of public funds by a State. mumcipality, or other political subdivision; (iv) pursuant to Section 61 of the Bankruptcy Act (11 U.S.C. loll in connection with the deposit of bankruptcy funds in commercial banks; (v) as collateral in connection with the qualification of member banks to exercise trust powers: or (vi) as collateral to secure deposits of trust funds in commercial banking departments of member banks. Section 306.117(a) of Subpart O provides that such application of the book-entry procedure shall not derogate from or adversely affect the relationships that would otherwise ex~st between this Bank in its individual capacity and its depositors. (2) Any bank or other depositor whose Treasury securities are on deposit in any account specified in paragraph (a)(l) above maintained by this Bank either in its individual capacity or as fiscal agent on April 7. 1971, and any person having an interest in Treasury securities which on or after such date are deposited m any of the aforesaid accounts oi any other account specified by this Bank for application of the book-entry procedure under Section 306.117(a) of Subpar~ O of Treasury Department Circular No. 300 will be deemed to have authorized this Bank to employ the book-entry procedure under the prowsions of such section with respecl to such Treasury securities Operating Circular No. 20 and to have' consented to the conversion of any such Treasury securities from definitive to book-entry form. (3) In connection with the application of the.book-entry procedure to Treasury securities under the provisions of Section 306.117(a) of Subpart O. it is understood that: (i) The terms and conditions of this circular and this Bank's Operating Circular No. 21 entitled "Book-Entry Treasury Securities," or in the event of a particular agreement between this Bank and its depositor, the terms and conditions of such agreement, shall apply to such securities. (ii) Advices of deposit and withdrawal with respect to sucl~ Treasury securities should be retained in some circumstances by the depositing banks or other parties in interest for Federal income tax purposes. (See Attachment to Subpart O). (b) Under Section 306.117(b) of Subpart O of Treasyry Department Circular No. 300, ihis Bank, as fiscal agent of the United States. shall apply the book-entry procedure to Treasury securities deposited with this bank, as collateral for balances in Treasury Tax and Loan Accounts or for deposits of public money under Treasury Department Circular No. 92 or No 176, respectively, and may also apply the book-entry procedure to Treasury securities deposited in other accounts designated by this Bank: and such securities will ~be handled pursuant to such terms and conditions as may be agreed upon between this Bank and the depositors of such securities This Bank's Operating Circular No. 21, entitled "Book-Entry Treasury Securities" applies to such accot~nts. MONROE KIMBREL President FEDERAL RESERVE BANK OF ATLANTA OPERATING CIRCULAR No. 20 Revised, effective September 1, 1969 SPECIAL cUSToDY To Banks and Others Concerned in the Sixth Federal Reserve District: 1. Custody Facilities.--The Federal Reserve Bank of Atlanta, including ils Birmingham, Jacksonville, Nashville, and New Orleans Branches (as "tkis bank"), makes available its custody and safekeeping facilities upon the general terms and conditions set out in this circular to hold in special custody securi- ties deposited: (a) by a member bank-as collateral pledged to a public or governmental body, board, unit ~or agency (as "public body") Or to a public or governmental official (as "public official") for purposes of indemnity, of guaranty, or of se- curing deposits of public funds pursuant to applicable State or Federal law; (b) by a bank as collateral pledged to the Unitedr States to secure a Treasury Tax and Loan Account or deposits of public money, pursuant to Treasuq, Department Circulars No. 92 (31 CFR 203) or No. 176 (31 CFR 202), respectively; "~ (e) as security'in lieu of sureties on penal bonds required by Federal law or regulations, pursuant to Treasury Department Circular No. 154 (31 CFR 225); (d) by a bank as security ha lieu of sureties on its depository bond for bankruptcy funds, pursuant to Section 61 of the Bankruptcy Act (11 USC Section 101), and subject to the orders of the bankruptcy courts; (e) by a member bank as collateral set aside under control of its trust department to secure deposits of trust funds awaiting investment or distribu- tion; or (f) by a member bank as collateral required for its qualification to exercise trust powers. Ttds bank will not undertake to act as an escrow agent or in any capacity other than as provided in this :ircular. 2. Custody Agreement.--Although parties to deposits of collateral are ordinarily governed by Federal or State laws and regulations, or court orders, with respect to the kind and amount of securities to be deposited, only the -2- Operating Circular No. 20 terms and condi'tions of this circular shall govern this bank's duties as custodian of the securities deposited..Upon request by a member bank or other party to use the custody facilities of th~ bank to hold securities for any of the purposes described in paragraph 1 above, this bank will furnish a copy of this operating · circular to the public body or public official for whose account the securities are to be held, as well as to the pledging bank. Each depositor of securities and pub- lie body or public official for whose account the se. curities are held, by relying upon and using the custodial facilities of this bank, shall be deemed to have ac- cepted and agreed to the terms and conditions of this operating circular. 3. Deposits of Securifles.--A bank or other depositor delivering securi- ties to this bank to be held in special custody should ship such securities by registered mail insured or prepaid express. The securities should be accompanied by a letter of transmittal, enclosed with the shipment, giving detailed description of the securities, including serial numbers and status of coupons attached, and stating for whose account the securities are to be held. A copy of 'dais letter should be sent to this bank by ordinary mail. Upon receipt of the securities, this bank will acknowledge in writing to the shipping bank that this bank has re- ceived the securities, describing the securities received and,the amount thereof, and indicating for whose account the securities are held. Each acknowledgment should be immediately verified by the shipping bank, and miless the skipping bank promptly fdes written notice regarding an omission or cfi-or, the correct- ness of the description and the amount of the securities listed on the acknowledg- ment will be decreed c~onf'u'med. 4. Issuance of Advice of Deposit. This bank will issue to the pledgee, for whose account the depositor has delivered securities to be held in special custody, an advice of deposit describing such securities. The advice of deposit shall be neither negotiable nor transferable, and any transfer, pledge or hypothe- cation thereof will not be recognized by this bank. The pledgee will be re- quested to fde with this bank, at the time of an initial deposit of securities, a specimen of the signature of each person authorized to give any order on behalf of the pledgee with respect to securities held for its account by this bank. Forms are provided for this purpose. 5. Surrender, Release or Delivery of Securities.--Except as provided in paragraph 6 for substitutions of U. S. Government securities, securities held by this bank in custody for the account of a pledgor's trust department, a public body or a public official will be surrendered, released or delivered to the pledging bank only upon the written authorization of the tmst department, public body or official for whose account the securities are held. This bank shall have the right to terminate its custody of any securities held pursuant to this circular not less than thirty days after marling written (9-1--69) -3- Operating Circular No. 20 notice of termination to the bank which has deposited the securities and to the public body or public official, or his successors in office, for whose account the securities are held in custody. Upon termination of its custody, this bank may deliver the securities to the pos~ office or express company for shipment by regis- to,ed mail or express to, and at the risk and expense of, such public body or public official, whereupon this bank's liability or responsibility with respect to such securities, under the provisions of this circular and under any advice of posit describing such securities, shall be fully discharged. 6. Substitution of Securities.--A pledging bank will be permitted to substitute like par amounts of securities which are the direct obligations of the United States for other securities which are the direct obligations of the United States held in custody by ttfis bank, unless the pledgee of such securities shall mail standing instructions to the office of this bank at which such securities are being held requiring the pledgee's prior approval of proposed substitutions. In the absence of such instructions, this bank upon request of pledging banks will effect substitutions and issue new advices of deposit to pledgees, covering the substitutions made and describing the U. S. Government securities then held in custody for the account of the pledgee. If instructed to obtain the pledgee's prior approval of substitutions, this bank will make a substitution only after the pledgee has given written consent to the specific substitution proposed and upon effecting such substitution, will issue to the pledgee a ~lbw advice of deposit covering the new securities placed in this bank's custody. 7. Maturing Coupons.--Unless we receive appropriate instructions to the contrary within a reasonable time prior to maturity, the proceeds of maturing coupons or the interest on securities held by this bank in custody pursuant to this circular will be paid to the pledging bank, if collected by this bank. Coupons on obligations of the United States or its agencies which are pa~able at this bank will be detached prior to maturity and the proceeds credited to the member bank's reserve account on the due date. A Treasury check for the proceeds will be forwarded to nonmember pledging banks, or upon instructions, proceeds may be credited to a designated member bank correspondent. All oth~r maturing coupons on obligations not payable at this bank will be entered for collection and handied subject to the terms and conditions of our Operating Circular No. 15, "Collection of Noncash Items." 8. Maturing, Called or Exchangeable Securities.--This bank will not be responsible for advising pledging banks of approaching calls or options v,4th spect to any maturing securities held for such bank. It shall be the responsibility (9-1-.69) - 4 - Operating Circular No. 20 of the pledging bank to maintain records of the'maturities oftha securities held in custody and to arrange for the release from pledge of such securities and for their subsequent exchange or redemption. When an optional exchange or redemption privilege is offered with regard to any obligations of the United States or its agencies which are exchangeable by this bank as fiscal agent of the United States, this bank will give notice of such option to all banks in the Sixth Federal Reserve District, in the form of a regular- ly mailed notice of the Treasury Department. Such notices will not be directed specifically to banks for which securities are held under pledge. Except where the pledgee has previously instructed this bank that substitu- tions of like face amounts of Il. S. Government securities will not be permitted without its specific prior approval, this bank and its branches will proceed to ex- change maturing or called securities in accordance with the terms of official Treasury exchange offerings and the instructions of the pledging bank. Upon completion of the exchange, this bank w/Il mail to fire pledgee a new advice of deposit covering the new securities substituted for the matured securities, and advising the pledgee of the substitution. Maturing securities will be released from a pledge and entered for collection or redemption only upon specific authorization from the pledgee, except where substitutions are made, under paragraph 6 above. U. S. Government securities, or securities of U. S. Government agencies for which *dtis bank acts as the fiscal agent, will be redeemed at their maturity or call date only after having been properly released. The proceeds will be credited to the reserve account of the pledging member bank. Maturing or called securi- ties belonging to a pledging nonmember bank will be redeemed only after proper release has been received and the nonmember bank has furnished insrructrons concerning the disposition of the proceeds. Securities which are not redeemed by this bank will be entered for col- lection or forwarded to the pledging bank only upon receipt of proper authoriza- tion from the pledgee and of instructions from the pledging bank as to their disposition. 9. P°wer and Auth°ritY of Pledgee.--This bank does not assume and shall in no event be under a duty to inquire into the existence or continuance of the .powers or authority of a pledgee for whose account this bank may hold securities m custody, his successors in office or of any person whose signature has been £ded with tiffs bank as author/zed to act on behalf of any such pledgee in trans- actions under this circular. Likewise, this bank shall be without liability, ac- countability or responsibility to anyone for acting upon or in accordance with (9-1-69) -5- Operating Circular No. 20 ~ritten authorization given by a pledgee or by any person whose signature has been fried with this bank as authorized to act on behalf of any such pledgee in transactions under this circular. However, this bank may require, if deemed necessary, a certificate from the proper authority or other sufficient evidence showing that any public official or any member of any public body for whose account securities are held hereunder, or any person whose signature is f'ded with this bank as authorized to act on behalf of any such pubhc official or public body, is the duly elected or appointed and qualified holder of his office or authority. 10. Power and Authority of Pledgor.--This bank does not assume and shall in no event be under a duty to inquire as to the power or authority of a pledging bank to make any pledge of securities placed in the custody of this bank; nor does this bank by the act of issuing an advice of deposit to a pledgee warrant in any way the validity or adequacy of the pledge of securities described in the advice of deposit. 11. Degree of Care Exercised as to Securities Held in Custody.--Each bank or other party depositing securities with this bank: ~either directly or through others, shall by such action be deemed to have agreed that this bank (a) will be responsible only for the exercise of the same.diligence with which it cares for its own property; (b) will not be liable for any loss of such securities when a loss is due to any cause other than lack of such diligence; (c) will not be responsible for the genuineness, validity, or alteration of or any defect in such securities; and (d) will not be obligated to maintain any form of insurance for the ac- count of the depositor, public body or official, or other party in relation to se- curities held in custody. t2. Insurance on Securities Held in Custody.--This bank carries a bankers blanket bond, covering money and securities against usual risks of loss while in the custody of this bank, with a limit of $500,000 for each loss. In- surance und.er this bond is primarily for the protection of this bank; recoveries will be applied first against a loss of fids bank's property and then against losses of property belonging to others. Ifa pledgor, pledgee, or depositor of securities held in custody under the pro;Ssions of this ckcular desires additional insurance protection, arrangements should be made therefor with a commercial insurance carrier. (9-1-69) -6- Operating Circular No. 20 13. Insurance on Shipments of Securities.--This bank maintains policies of insurance under which shipments of sgcurities by registered mail made by or to this hank may be insured while in transit. Further details regarding this in- surance are set forth in the paragraph entitled "Insurance on Shipments of Se- . curities" in our Operating Circular No. 18, "Safekeeping, Handling and Shipment of Securities." In no event will this bank be liable for losses to shipments made by it re- sulting from risks or hazards excluded from the coverage of insurance on such shipments, such as war risk and nuclear hazards. 14. Risk of Loss on Shipments.--Regardless of any other provision of this circular, any bank or other party shipping, or causing the shipment of, securities to this bank shall, by such action, be deemed to have agrecd that the risk of loss on such shipments occurring prior to the actual delivery thereof to this bank by the post office, express company, or other carrier, is not assumed by this bank, but is to be borne by the sender. Likewise, any bank or other per- son ordering a shipment of securities from this bank shall, by such action, be deemed to have agreed that this bank, in making such shipment, undertakes merely to make delivery to the post office, express company, or other carrier, and that the risk of loss occurring subsequent to such delivery is not assumed by this bank, but is on the party ordering such shipment. 15. Charges affd Expenses.--Special custody facilities are made available by this bank without charge as an accommodation to the pledging bank and to the public body or public official for whose account securities are held; pro- vided, that a charge is made for holding securities deposited by a nonmember bank to secure its depository bond for bankruptcy funds, at the rate of 1/40 of 1-percent of the face value of the securities for each period of 12 months or less, subject to a minimum of $2.50 and a maximum of $250. Charges are also made to depositors of securities covering costs of trans- portation and insurance, telephone or telegraph expenses, and any charges by collecting bank~. 16. Transferable Treasury Securities; Book-Entry Securities.--Transfer- able Treamry bouds, notes, certificates of indebtedness, and bills issued under the Second Liberty Bond Act, which are deposited with this bank to secure balances in Treasury Tax and Loan Accounts or deposits of public money under Treasury Department Circular No. 92 or No. 176, respeelively, are mainta/ned by means of entries on the records of this bank as fiscal agent of the United States (book-entry Treasury securities)under Section 306.117(a) of Subpart O, Treasury Department Circular No. 300. (9-1-69) -7- Operating Circular No. 20 This bank, as fiscal agent of the United States, may also apply the book- entry procedure to Treasury securities deposited with this bank in its individual capacity for the other purpdsas stated in paragraph 1 of this circular, under Section 306.117(b) of Subpart O, Treasury Department Circular No. 300. This bank in its individual capacity will continue to maintain such deposit accounts, notwithstanding application of the book-entry procedure to the Treasury securi- ties deposited, subject to the terms and conditions of this circular. Section 306.117(b)ofSubpart O provides that such application of the book-entry procedure shall not derogate from or adversely affect the relation- ships that would otherwise exist between any Reseive Bank in its individual capacity and its depositors; and that the rights of all persons in and with respect to the obligations of the United States represented by such Treasury securities shall be in all respects and at ali times the same as though defmitive Treasury curities in bearer form in the same amount and of the same loan title (or series) and maturity date as those entered in the deposit account had been at all times held in custody by such Reserve Bank in its individual capacity in such account under the deposit agreement between such Reserve Bank and its depositor. Accordingly, any bank or other depositor whose de~nitive Treasury se- curities are on deposit in any account specified in paragraph 1 of this circular and maintained by this bank in its individual capacity on October 3, 1969, and any bank or other depositor which on or after such date deposits or causes to be deposited such securities in any such account, will be deemed to have authorized this Bank to employ the book-entry procedure under the provisions of Section $06.117(bi of Subpart 0 of Treasury Department Circular No. 300 with respect to such Treasury securities, and to have authorized the conversion of such de- finitive Treasury securities to book-entry form. An advice of deposit referring to Treasury securities on deposit with this bank and using the designation "BE-I" will constitute advice that such Treasury securities are in book-entry form under the provisions of Section 306.117(b)of Subpart O. Advices of deposit and withdrawal with respect to book-entry Treasury securities are issued in the form of "serially-numbered advices of transactions" and should be retained by depositing banks for Federal income tax purposes. 17. Revisions.--The right is reserved to withdraw, add to, or amend at any time the provisions of this operating circular. Monroe Kimbrel, President (9-1-69)