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Home My WebLink AboutContracts & Agreements_5-1962A G R E E M E N T THIS AGREEI NT, made and entered into this% day of 4� 1962 by and between the City of REDLANDS of the State of California, hereinafter called the "City', and BANK OF ADERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, a national banking association, hereinafter called the "Bank of America"; W I T N E S S E T H., T H A T WHE'REAS., bonds issued by the City or by a department thereof, pro- vide, or may provide in some instances, that the same are payable, and in some instances that the same are collectible, as to principal and interest at Bank of America, or at a designated bank or banks in the City of New York, State of New York, or at a designated bank or banks in the City of Chicago, State of Illinois, and in some instances that the same are payable or collectible as to principal and interest at the office of the Treasurer of the City of RE'DDL,ANDS or at designated offices of Bank of America, or at a designated bank or banks in the City of New York, State of New York, or at a bank or banks in the City of New York, State of New York designated as a fiscal agent for such purpose, or at a designated bank or banks in the City of Chicago, State of Illinois, or at .a bank or banks in the City of Chicago, State of Illinois,, designated as a fiscal agent for such purpose; and MiEREAS., it is desirable that there be an arrangement whereby such bonds, or coupons pertaining thereto, may be presented for payment or collec- tion at, and be honored by, said Bank of America or said designated bank or banks in the City of New York or in the City of Chicago., or by designated fiscal agents in the City of New York or in the City of Chicago; and WE AS, it is mutually desirable that an agreement be entered into between these parities to provide for such services; ° ` '�, M XFCREW the parties above named in consideration of the mutual covenants herein contained,, agree as follows-, EOTIOTI1. Upon written request of the Treasurer of the City ,shall cause any bonds of the City, or department thereof, and any coupon.5 SECTION 2. When any band or coupon is honored parquant, to Section I hereof, Bank of America forthwith shall cause such bond or coupon to �M aceordance with the terms the2vof. SIECTION 3. The City shall from time to time deposit with the Commercial Department of Bank of Ame . rica, Redlands Main Office, in an account designated It Bond and Coupon Redemption Ac-count it sums in cash such that there shall at all timz:s be on deposit in said account an amount not Less than the total amount paid or disbursed pursuant to Section 1 hereof, and not theretofore reimbursed to Bank of America pursuant to Section 4 here- of; provided., however, the amount so on deposit shall never on any date unreasonably exceed the total amount so paid or disbursed pursuant to Section 1 and not theretofore reimbursed to Bank of America, plus the total amount., payment or disbursement of which will be required within thirty days next following such date. The Treasurer may at any time withdraw any amount in said account in excess of the minimum requirement in this Section above set forth. As security for funds deposited by the Treasurer in said "Bond and Coupon Redemption Account", Bank of America shall pledge with the Treasurer, treasury notes or bonds of the United States, or those for which the faith and credit of the United States are pledged for the payment of principal and interest, or of this State or of any county, city and county, city, town, metropolitan water district, municipal utility district, municipal water district, water district, water conservation district or irrigation district within this State., or registered warrants of this State, which notes, bonds., or registered warrants shall be approved by the Treasurer, and, as to eligibility, by the City Attorney of the City of REDLANDS. The market value of the securities so pledged shall be at least 10% in excess of the amount of the deposit secured thereby, and the principal amount of the securities so pledged shall be not less than the amount of the deposit secured thereby. A11 securities so pledged shall be deposited with the Treasurer. if, in any case., or at any time, the securities pledged pursuant to this Section, or any of such securities, be deemed not satisfactory by the Treasurer, then the Bank of America shall pledge such additional securities as may be satisfactory to him. In addition to the requirements of this section, Bank of America shall provide to the Treasurer any additional security which -3- A " , L 1 ' 5Si I i a r the o: f ` u :l th4 la Friday '\ lr rfor ouch ,E r M n ;' b ,r .k you h A, t o o ioao I - - e t a I :' 'o 't th :e bmdo w.,:d . p rto ti i t t S'.Z t+,V 5. The City 1 t to t ,s fo . for the pa) 4 t 1; '3ur - n. ,,,It- f prterotoll, and int, , ,iftiV '° 'aa t ti, Ws , ; t It For .; ` paid !1 1 `{ ' ..1 .n.- • Yak t - °at rtt ¢ r w , outstanding .per etti p',t of tow 1 *4 nor the 410 bond., paid in 4 'fie roar 1.. 0 ea. r _ 24" ° t -. && pad IA AiMir'-, z , 0 `t,;` ` ea. bi pad in. or ,� �In'fttv f r the, as 7t of id prior to }. - rt y b a •:n' j. ,1 telt ?off` 1 '•47;11 *,n4. pr1,4 ± ,* City' sh,50,1 __A:r4bUirae thit .: k: , ' Ott z o . . .` Al`* , 1.-I-: a A Tr. , oth :n_r Inoiti. +.i out of - - o e x"'l ' loam,_ IV' . k o f: •17r0, 0 t het p. •. -, r 1 .?: 1® dor : • to per.: ' U, .°. •4 th a ' °:ta ' - Utz °.•; • .,,corit 4 i w4 t vkii4 o 41,,bi , .•. : , 1pol ,A s patdo • p r + to n" e; 1 he - ; :"o to7other ilth : n o of ' ,,Into wit o ciao 4, "S• , ,C . rice r t i . • :, w o ..R t •4, _tom = for h t" 7titnt'; z . ,, is a :• . p . ' ; tIn Se4ti ' "s , "o , of ouch o ,' . t the ,•• ' .11 pay to th,', n of r9.•F al f'4: s. t, .r thi, ,a,.,,.-,. . and I SECTION a. During the term of this agree a ,.t the City may ploy the services of other banks for -the purposes herein set forth, either con- currently with, or exclusive of, the services coat slated to be rendered hereunder by Bank of America, and this afire <;eat shall apply to such trans- actions regarding bonds of the C .ty, or depa , eat thereof, or coupons pertaining to such bonds, as the Tr asurear shall specify in writing. SECTION 9. During the term of this agreement, the City may designate one or more banks in the City of New York or City of Chicago, at which bonds of said City, or of a departm t th reof, or coupons pertaining to such bonds, be payable, and thereupon Bank of America shall cause such bonds or coupons to be paid or honorzd as provided by Section 1 of this a ,° a enti provided, however, that no bank in the City of New t ark, State of New York, or in the City of Chicago, State of Illinois, shall be designated unless said Bank of .America has satisfactory arrant vents with such N York Bank or such Chicago Bank to able it to perform the services provid by this agreem t, and provided further that such desi tion shall not be until such time as a satisfactory ate, anent has been entered into by the said Bank of America and such New York bank or Chicago bank with re- spect to the services to be performed under this ; Beat. S CTIQN 10. At least ten (10) days prior to the first payment or disbursement of principal or interest on any issue of bonds under the provisions of this agreoent, the City shall furnish one specimen bond of each interest rate of such issue to Bank of erica and to the designated bank or banks in the City of New York and City of Chicago. SECTION 11. The Treasurer upon six months written notice to Bank of -erica, may terminate any- request for the performance of services pursuant to this agreent. SECTION 12. B of _,erica upon six months written notice to the Treasurer, may terminate this agreem Ft, provided, however, that upon default by the City under am of the provisions of this a eat, or upon default by the City, or department thereof, in the puym et of principal or interest of _6_ any issue or issues with respect to drhich .Bank of America has undertaken or performed any serv;.ces as required to be rendered by Section 1 hereof, Bank of America may immediately terminate this afire 3ment in its entirety upon giving the 'treasurer written notice. WHEMF: the parties hereto have caused these �-)res nts to be duly executed, the day and year first above ,rritten. 01 TY OF RIMLANDS �3y c y® HANK OF AMRRTCA NATIONAL TRUST VLM SAVINGS AS DCIATION y � B- VICE PRESIDENT AND ANAGER 13-,r 4vsiatt Trust Off'3.cer The foregoing terms and conditions and contract are here,`7 fixed and aDproved this 15 �y day of Treasurer of the City ,�PrRedlands EXCERET FROX COUNCIL AINUTES - My 19 1962 RyIng aEgnt for bend issue: In connectian with the bond issue authorimed for the financing of the sew sonar plant and outfall sewer, the City Treasurer was directed to enter into nego- MatioDs for a paying agent for the Vnds$ with the t,kyor arcs the Gity ;Iana.Ler to exeMs 3ach an agree- ment, on aotion of Councilman Wagner, seconded by councilgan Wilson. ty cler