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HomeMy WebLinkAboutContract 2011 2371 General Depository U.S. Department of Housing OMB No. 2577 -0270 and Urban Development exp. 09/30/2013 Agreement Office of Public and Indian Housing This Agreement, entered into this 7 A day of ke , 70k by and between The Columbia Heights • Housing and Redevelopment Authority (herein called the "PHA /IHA "), a duly organized and existing public body corporate and politic of the City of Columbia Heights o f Minnesota and Northeast Bank (herein called - the "Depository "), located at 3989 Central Ave NE Columbia Heights MN 55421 Witnesseth: Whereas, the Department of Housing and Urban Development (herein called "HUD ") has entered into one or more contracts (herein called the "Contract" with the PHA /IHA for the purpose of providing financial assistance to develop and operate lower incometking projects, as authorized by the United States Housing Act of 1937, as amended (42 USC 1437, et seq.); and Whereas, under the terms of the Contract the PHA /IHA is required to select as depositories of its funds financial institutions whose deposits or accounts are insured by either — the Federal Deposit Insurance Corporation or the National Credit Union Share Instance Fund as long as this Agreement is in force and effect. Now Therefore, in consideration of the mutual covenants herein- writing and signed on behalf of the PHA /IHA by an officer or after set forth, the parties hereto agree as follows: member designated by resolution of the Board of Directors of the 1. The deposits and accounts of the Depository shall continue PHA /IHA to have such authority. To assist the Depository in its to be insured by either — the Federal Deposit Insurance Corpora- obligation, the PHA/IHA shall furnish the Depository with a tion or the National Credit Union Share Insurance Fund. certified copy of the resolution. 2. All monies deposited by the PHA /IHA with the Depository 4. Any securities received from the PHA /IHA or purchased by shall be credited to the PHA /IHA in a separate interest bearing the Depository with monies from the Accounts shall be considered deposit or interest bearing accounts, designated to be a part of the Accounts and shall be held by the Depository in safe - keeping for the PHA /IHA until sold. Interest on such securities and the proceeds from the sale thereof shall be deposited in the Account upon receipt: Parkview Villa North 5. If the Depository received written notice from HUD that no withdrawals by the PHA /IHA from the Accounts are to be permit - Accounts" (herein the "Accounts "). Any portion of PHA /IHA ted, the Depository shall not honor any check or other order to pay Funds not insured by a Federal insurance organization shall be from the Accounts or directive to purchase or sell securities, or fully (100 %) and continuously collateralized with specific and permit any withdrawals by the PHA /IHA from said Accounts until identifiable U.S. Government or Agency securities prescribed by the Depository is authorized to do so by written notice from HUD. HUD. Such securities shall be pledged and set aside in accordance 6. The Depository is not obligated to be familiar, and shall not with applicable law or Federal regulations. The PHA /IHA shall have possession of the securities (or the PHA /IHA will take be charged, with knowledge of the provisions of the Contract, and possession of the securities) or an independent custodian (or an shall be under no duty to investigate or determine whether any independent third party) holds the securities on behalf of the PHA/ action taken by either the PHA /IHA or HUD in respect of the IHA as a bailee (evidenced by safe keeping receipt and a written Accounts are consistent with or are authorized by the Contract or bailment for hire contract) and will be maintained for the full teen whether either PHA /IHA or HUD is in default under the provisions of deposit. The Depository may substitute other securities as of the Contract. The Depository shall be fully justified in collateral to equal or increase the value. If PHA /IHA is an agency accepting and acting on, without investigation, any certificate or of an Indian tribe, the collateral shall be in United States bonds notice furnished to it pursuant to the provisions of this Agreement and otherwise as may be prescribed for public funds by the United and which the Depository shall in good faith believe to have been States Secretary of the Treasury. duly authorized and executed on behalf of the party in whose name the same purports to have been made or executed. 3. Except as stated in Paragraph 5, the Depository shall honor 7. The rights and duties of the Depository under this Agree - any (a) check or other order to pay from the Accounts, or (b) merit shall not be transferred or assigned by the Depository directive to purchase investment securities with monies from the without the prior written approval of the PHA /IHA and HUD. Accounts or to sell securities, if such order or directive is in form HUD -51999 (6/91) Form HUD -52000 and previous editions of this form are obsolete. Page 1 of 2 ref. Handbook 7475.1 4 This Agreement may be terminated by either party hereto upon investment by the PHA/4-1A. Such r 'es shall not be thirty days' written notice to the other party, and HUD. The rights considered to be a part 0/the Accoui to suant to Paragraph 4 and duties of the Depository hereunder shall not be transferred or hereof but shall be held' the Depository as custodian or trustee assigned nor shall this Agreement be terminated during any period for the PHA /IHA in ,a separate account established for that purpose in which the Depository is required to refuse to permit withdraw- by the Depository herein the "Securities Account "). The als from the Accounts as provided in Paragraph 5. Securities Acco it shall be designated: 8. HUD is intended to be a third party beneficiary of this Agreement and may sue to enforce its provisions and to recover damages for failure to carry out its terms. 9. The Depository shall promptly notify the PHA /IHA of Income or other proceeds -from securitie el -i h - curities crediting or depositing of any monies in the Accounts. Account shall, as directed by the PHA / p r i ceipt, be paid 10. The provisions of this Agreement may not be modified by to or on behalf of the PHA /IHA; prov de w r that such either Party without the prior written approval of HUD. proceeds shall, to the extent consi ent th r rise with the provisions of this Paragraph, be di sosited in the Accounts. If the 11. Previous General Depository or Savings Depository Agree- Depository receives written no ce from HUD pursuant to ments, if any, entered into between the Depository and the PHA/ Paragraph 5 hereof that no witl i rawals by the PHA /IHA from the IHA are hereby terminated and all monies and securities of the Accounts are to be permitted, le Depository shall not honor any PHA /IHA on deposit with or held by the Depositories pursuant to directive from the PHA /IHA o sell securities, or permit any the terms of said Agreement shall continue to be held for account withdraws by the PHA /IH , from the Securities Account until the of the PHA /IHA pursuant to and in accordance with the provisions Depository is authorized do so by written notice from HUD. of this Agreement. �Q� During the pendency of uch restrictions on the Accounts and the \h`b Accounts be Securities Account, th Depository, except as directed in writing 12. At no time shall the PHA/IHA FundN permitted to exceed the amount sured by Federal deposit by HUD, shall not re it any payment to the PHA /IHA for the purpose of limiting le amount of funds in the Account to the insurance (herein the "Insured • mount "). At any such time as the Insured Amount b t shall instead purchase securities approved for amount of funds in the Ace* tits reach the Insured Amount, investment by th PHA /IHA and hold such securities in the whether by the accrual of ii erect or otherwise, the Depository Securities Acco nt. shall promptly, as dire' ed by the PHA /IHA, and in an amount (For use only 'n certain States that have statutes that prohibit sufficient to limit air ffds in the Accounts to the Insured Amount, either: (. remit payment to the PHA /IHA or, (b) on Public Housi g Agencies and Indian Housing Authorities from ,� implement* paragraph 2.) behalf of the P &1 HA, purchase securities approved for In Witness Whereof, the PHA /IHA and the Depository have caused this Agreement to be executed in their respective names and their respective seal to be impressed hereon and attested as of the date and year first above written. 1 od ar „ 9 eL..S-i ffif P- eitteAC v►W tiLkliN0( 1 -- PHA /IHA (SEAL) ATTEST: By / `f l Chairman w 1 ;WM Seel - V�2�t�a>j� c)k • Depository = B (SEAL) ATTEST: Note: Strike paragraphs 11 and 12 if not applicable. form HUD -51999 (6/91) Form HUD -52000 and previous editions of this form are obsolete. ref. Handbook 7475.1 _ - Page 2 of 2