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R1772 R E S O L U T I O N NO. 1772 WHEREAS, under the provisions of Section 7.080 of the Plan of The Metropolitan St. Louis Sewer District, the Board of Trustees of the District is directed to select annually one or more banks or trust companies, situated in the District, for the deposit of all funds of the District and any subdistrict, and WHEREAS, the Board of Trustees is directed to require each such bank or trust company to furnish certain security for the amount of deposits with said bank or trust company, NOW, THEREFORE, BE IT RESOLVED that all banks and trust companies situated in the District, and meeting the requirements of the Plan of The Metropolitan St. Louis Sewer District and the Statutes of the State of Missouri, be, and the same are hereby, selected as depositaries for the funds of the District and all subdistricts for the Fiscal Year 1986-87 for the general and special funds and accounts of the District and all subdistricts. BE IT FURTHER RESOLVED that the approval of the Board of Trustees shall be secured by the Secretary-Treasurer prior to the transfer of funds from one depositary to another depositary, except such transfers as may be required from time to time for current payment of bond interest and principal, or such transfers as may be required for the equalization of funds in the various depositaries. BE IT FURTHER RESOLVED that the rate of interest paid to the District for Certificates of Deposit by any bank or trust company selected as a depositary shall be no lower than the average rate paid for United States Treasury Bills for the prior week less one-half percent (1/2%) for the same period of time, that the interest rate shall be calculated on the basis of three hundred sixty (360) days per year, and that interest will be remitted monthly by the depositary to the District. BE IT FURTHER RESOLVED that as a condition precedent to the deposit of funds of the District or of funds held by the District, each of said banks and trust companies shall deposit with a Federal Reserve Bank located within the State of Missouri, or with a disinterested National Bank located within the State of Missouri, as escrow agent or trustee, securities of the kind and character as provided in Section 30.270, Revised Statutes of Missouri, 1949, as amended, equal in market value to the amount of the deposits of the District and subdistricts in each of said banks or trust companies, for the security of funds deposited by the District. PROVIDED: That, upon increase of deposits in each of said banks and trust companies, such banks and trust companies will make additional deposits of securities of like kind and character with a Federal Reserve Bank located within the State of Missouri, or with a disinterested National Bank located within the State of Missouri, as escrow agent or trustee, equal in market value to the amount by which deposits are increased. PROVIDED FURTHER: That each of said banks and trust companies may, at any time, withdraw any of the securities so deposited upon depositing in lieu thereof other securities of like kind and character and at least equal in market value of the securities withdrawn. PROVIDED FURTHER: That securities so deposited shall be pledged to secure payment by the pledging bank or trust company of District funds on the check or checks of the District, and that such securities shall be released and delivered to the District on its sole demand made to a Federal Reserve Bank located within the State of Missouri, or a disinterested National Bank located within the State of Missouri, as escrow agent or trustee, as the case may be, in the event that such pledging bank or trust company should fail to pay such secured funds, or any part thereof, on the check or checks of the District, and that securities so released and delivered to the District shall be converted into money and the District shall use the same in lieu of such secured funds. The foregoing Resolution was adopted June 25, 1986.