HomeMy WebLinkAbout24-86 , J111, •
RESOLUTION NO. 24-86
A RESOLUTION APPROVING AND AUTHORIZING OBTAINING
ISSUANCE OF .A STANDBY LETTER OF CREDIT BY THE
BANK OF AMERICA, DEPOSITING FUNDS OF THE CITY OF THE
TOWN OF LOS ALTOS HILLS IN A CERTIFICATE OF DEPOSIT
ISSUED BY THE BANK OF AMERICA, AND AUTHORIZING
EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION THEREWITH
RESOLVED, by the City Council of the City of the Town of Los
Altos Hills, County of Santa Clara, State of California, that
WHEREAS, the City of the Town of Los Altos (herein called the
"TOWN") has obtained issuance of a General Liability Insurance
Policy by Alliance Insurance Company of Kansas City, Missouri con-
taining a deductible provision in the amount of One Hundred Thou-
sand Dollars ($.1.00 , 000) ; and
WHEREAS, among others, a condition of issuance of the insurance
policy requires the TOWN to obtain and deliver an irrevocable Stand-
by Letter of Credit in favor of NATESCO UNDERWRITERS and in the
amount of One Hundred Thousand Dollars ($100 , 000) ; and
WHEREAS, the TOWN has made application to the BANK OF AMERICA
NATIONAL TRUST AND SAVINGS ASSOCIATION, a national banking associ-
ation, (herein called the "BANK OF AMERICA" ) for issuance of the
Standby Letter of Credit and as a condition of the issuance thereof,
III
the TOWN is required to execute and deliver the herein described
documents to the BANK OF AMERICA, and to deposit therein the amount
of One Hundred Thousand Dollars ($100 ,000) .
NOW, THEREFORE, IT IS FOUND, ORDERED AND DETERMINED as follows:
1. The Mayor of the TOWN be and she hereby is authorized to
make application to the BANK OF AMERICA for issuance of. the Standby
Letter of Credit in the :amoun:t set forth above..
2. The Director of Finance of the TOWN be and he hereby is
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authorized to cause sufficient funds of the TOWN to be paid to and
deposited with the BANK OF AMERICA inorder to purchase an appro-
priate Time Certificate of Deposit in the amount of One Hundred
Thousand Dollars ($100 ,000) and to pay other costs and expenses in
connection with the issuance of the Standby Letter of Credit.
3. Public interest and convenience require the execution of
each of the following documents , namely
(a) "Application for Standby Letter of Credit7 '
(b) "Time Deposit Receipt" '
(c) "Security .Agreement; Secured Party in Possession
(d) "Bank Depositor Agreement, "
and the City Council of the TOWN hereby approves each of the fore-
going described documents.
4. The TOWN shall enter into, and the Mayor and City Clerk of
the TOWN be, and they and each of them hereby is authorized and
directed on behalf of the TOWN, respectively, to execute and attest
each of the foregoing described documents.
5. The BANK OF AMERICA is authorized to act upon this Resolu-
tion until written notice of its revocation is delivered to the Bank,
and that the authority hereby granted shall apply with equal force
and effect to the successors in office of the officers of the TOWN
herein named.
REGULARLY passed and adopted this 19th day of February, 1986 .
/;
MAYOR
ATTEST:
Reso. #24-86/page two
CITY CLERK