HomeMy WebLinkAboutCC RESO 2007-214RESOLUTION NO. 2007 — 214
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A DEPOSIT PLACEMENT
AGREEMENT AND A CUSTODIAL AGREEMENT WITH
NEIGHBORHOOD NATIONAL BANK FOR UP TO $2,000,000
FROM THE CITY'S INVESTMENT CAPITAL TO INVEST IN
THE CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY
SERVICES (CDARS) PROGRAM WITH A 5.25% RATE
OF RETURN AND AN 18 MONTH MATURITY
WHEREAS, on August 21, 2007, Resolution No. 2007-202 was adopted by the
City Council approving an amendment to City Council Policy No. 203 pertaining to the National
City Investment Policy to permit the City to participate in the Certificate of Deposit Account
Registry Service (CDARS) Investment Program; and
WHEREAS, Neighborhood National Bank ("NNB") is a CDARS member bank, a
local community bank, sits on the City's Community Benefit Loan Committee, and is assisting
the City to develop a Small Business Toolbox; and
WHEREAS, NNB has a strong financial position, and provides the City with a
safe investment option; and
WHEREAS, NNB has offered to provide the City a rate of return of 5.25% on a
$2,000,000 CDARS investment with an 18 month maturity; and
WHEREAS, the full amount of the City's CDARS investment can support lending
initiatives, including special development projects and small business loans that strengthen the
local community.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute a Deposit Agreement and a Custodial
Agreement with Neighborhood National Bank for up to $2,000,000 from the City's Investment
Capital to invest in the Certificate of Deposit Account Registry Services (CDARS) Program with
a 5.25% rate of return and an 18 month maturity. Said Agreements are on file in the office of
the City Clerk.
ATTEST:
A
PASSED and ADOPTED this 4th day of Sept , 2007.
on Morrison, Mayor
APPROVED AS TO FORM:
Mi hael R. Della City Clerk George H Eiser, Ill
City Attorney
Passed and adopted by the Council of the City of National City, California, on
September 4, 2007 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Natividad, Parra, Ungab.
Nays: None.
Absent: Councilmember Zarate.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City C erk of the City of National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2007-214 of the City of National City, California, passed and
adopted by the Council of said City on September 4, 2007.
City Clerk of the City of National City, California
By:
Deputy