Fill - Free fillable County Security Agreement (Arkansas State Treasury) PDF form

TREASURER OF THE COUNTY OF ____________________________________, AR

SECURITY AGREEMENT FOR FUNDS HELD IN DEPOSIT

This Agreement entered into as of the _______ day of ___________________, __________, by

and between ______________________________________________,Treasurer of the County

of ________________________________, (“Depositor”) and

_______________________________________, ____________________________, ________.

(Bank Name) (City, State) (Zip Code)

(“Institution”).

WITNESSETH

WHEREAS, the Depositor is the duly elected Treasurer of _______________________________

(“County”), and, as such, custodian for various county and agency funds under the laws of the

State of Arkansas; and

WHEREAS, pursuant to Arkansas Code Annotated §19-8-101 et. seq., the Institution has been

designated as a depository of public funds; and

WHEREAS, the Institution has agreed to secure the funds of the Depositor so deposited with it

by conveying to the Depositor a security interest in eligible securities owned by the Institution,

as allowed by 12 U.S.C. §90 and as provided in Arkansas Code Annotated §19-8-203 and §23-47-

203, as amended;

NOW, THEREFORE, in consideration of the Depositor depositing certain of its funds with the

Institution, and for other good and valuable consideration, it is agreed between the Depositor

and the Institution as follows:

1. For the purpose of securing the funds deposited by the Depositor with the Institution,

the Institution hereby agrees to assign, transfer, pledge and convey to the Depositor a

perfected security interest in eligible securities owned by the Institution, as allowed by

12 U.S.C. §90 and as provided in Arkansas Code Annotated §19-8-203 and §23-47-203,

as amended. The securities pledged as collateral hereunder ("Collateral") shall at all

times have a market value, as determined by the Depositor equal to at least 105% (the

"Maintenance Percentage") of the amount of funds of the Depositor so deposited with

the Institution. Each pledge of securities as Collateral hereunder shall be made as

follows:

a. In the case of any uncertificated securities issued by the United States and

registered in the name of the Institution by the Federal Reserve Bank of St. Louis

or any branch thereof, by delivery by the Institution to the Depositor of a

written confirmation setting forth the securities pledged and also by the

Institution identifying on its books and records as being pledged to the

Depositor specific securities or a quantity of specific securities that constitute or

are part of a fungible bulk of securities owned by the Institution;

b. In the case of any uncertificated securities issued by the United States and held

for the account of the Institution by another financial intermediary (a bank or a

securities broker-dealer), by delivery by the financial intermediary to the

Institution and the Depositor of a written confirmation setting forth the

securities pledged, together with identification by the Institution on its books

and records of the pledge of such securities to the Depositor and identification

by the financial intermediary on its books and records of the pledge of such

securities to the Depositor;

c. In the case of any securities issued in the form of certificates and held in the

Institution's possession, by delivery or transfer of such certificates (in bearer

form or with instruments of transfer duly endorsed in blank) to the address or

account of the Depositor; and

d. In the case of any securities issued in the form of certificates and held in the

possession of a financial intermediary (a bank or a securities broker-dealer) for

the account of the Institution, by delivery or transfer of such certificates (in

bearer form or with instruments of transfer duly endorsed in blank) to the

address or account of the Depositor or by delivery by the financial intermediary

to the Depositor and the Institution of a written confirmation setting forth the

securities pledged together with identification by the Institution on its books and

records of the pledge to the Depositor of the specific certificated securities held

in the financial intermediary's possession and identification by the financial

intermediary on its books and records of the pledge to the Depositor of the

specific certificated securities held in its possession for the account of the

Institution. Each written confirmation delivered to the Depositor pursuant to

this Agreement shall set forth, at a minimum, (i) a description of the securities

pledged as collateral hereunder, including the type, cusip number, maturity date,

interest rate and par amount of each security pledged, (ii) the amount of funds

of the Depositor on deposit as of the date of the confirmation, (iii) the market

value of the securities pledged as collateral as of a recent date, and (iv) a

statement that the confirmation has been delivered to the Depositor pursuant

to the terms of this Agreement.

e. In the case of letters of credit, surety bonds and private deposit insurance

policies, the issuer will be identified along with the coverage amount. The

instrument will permit Depositor to make a claim directly on the issuer of the

instrument in the event of default, financial failure or insolvency of the

Institution. These instruments will be delivered to Depositor and risk of loss

shall be with the Institution until the instrument is actually received by

Depositor. Institution will also require the issuer of the Instrument to forward a

copy of notification of coverage or insured limit to Depositor. As relevant to

surety bonds, any surety bond pledged as collateral is irrevocable and absolute,

and issuer of the surety bond cannot provide surety bonds for any one bank or

financial institution in an amount that exceeds ten percent (10%) of the surety

bond insurer’s policyholders’ surplus and contingency reserve, net of

reinsurance.

f. Each written confirmation delivered to the Depositor pursuant to this

Agreement shall set forth, at a minimum, (i) a description of the securities

pledged as collateral hereunder, including the type, cusip number, maturity date,

interest rate and par amount of each security pledged, (ii) the amount of funds

of the Depositor on deposit with the Institution as of the date of the

confirmation, (iii) the market value of the securities pledged as collateral as of a

recent date, and (iv) a statement that the confirmation has been delivered to the

Depositor pursuant to the terms of this Agreement. A current statement

reflecting pledged Collateral will be provided to both Depositor and Pledgor by

Custodian, the holder of Depositor’s Collateral, on a monthly basis.

2. If at any time the ratio of the market value of the Collateral to the amount of funds on

deposit is less than the Maintenance Percentage, then the Institution shall assign,

pledge and convey a security interest and transfer to the Depositor securities of the

type eligible to be pledged pursuant to Arkansas Code Annotated §19-8-203 and §23-47-

203, as amended, and in such amount so that the ratio of the market value of such

pledged securities to the amount of funds on deposit shall be at least equal to the

Maintenance Percentage. Any additional pledge of Collateral hereunder shall be

approved by an officer of the Institution duly authorized by resolutions of the Board of

Directors to approve substitutions of collateral, releases of collateral, and additional

pledges of collateral under this Agreement ("Duly Authorized Institution Officer").

3. The Institution shall have the right, from time to time, after approval thereof by a Duly

Authorized Institution Officer, to withdraw any of the pledged securities and substitute

therefore other pledged securities of the same type and of like amount of the securities

withdrawn upon compliance with the requirements of paragraph 1 hereof and delivery

to the Depositor of written notice of such substitution, specifically identifying the

securities withdrawn and the securities substituted therefore.

4. Any pledge hereunder shall be a continuing pledge and shall secure not only such

deposits that are held by the Institution at the time of the transfer of the Collateral to

the Depositor hereunder, but also any and all subsequent deposits of funds with the

Institution by the Depositor, notwithstanding the account or accounts in which such

funds may be held or identified by the Institution.

5. The pledge of Collateral by the Institution to secure the deposits of the Depositor shall

be in addition to, and shall in no way eliminate or diminish, any insurance coverage to

which the Depositor may be entitled under the rules and regulations of the Federal

Deposit Insurance Corporation or any private insurance carried by the Institution for the

purpose of protecting the claims and rights of its depositors.

6. It is agreed that when the Institution shall have paid out and accounted for all the funds

of the Depositor so deposited with the Institution, then and in that event any and all

securities pledged as Collateral under this Agreement shall be released from the

security interest created hereunder, and the Institution and the Depositor shall take

whatever actions may be necessary to cause a transfer of such securities to the

Institution free and clear of any liens created hereunder.

7. The Institution hereby represents to the Depositor that (i) it is a national bank, state

bank, out-of-state bank with Certificate of Authority under Arkansas Code Annotated

§23-48-1001 or savings and loan association, duly organized and validly existing under

the laws of the United States or the State of Arkansas, (ii) it has, or will have at the time

of delivery of any securities as Collateral under this Agreement, the right, power and

authority to grant a security interest therein with priority over any other rights or

interests therein, (iii) the execution and delivery of this Agreement and the pledge of

securities as Collateral hereunder has been approved by its Board of Directors, and (iv)

the execution and delivery of this Agreement and the pledge of securities as Collateral

hereunder will not violate or be in conflict with the Articles of Association or By-laws of

the Institution, any agreement or instrument to which the Institution may be a party,

any rule, regulation or order of any banking regulator applicable to the Institution, or

any internal policy of the Institution adopted by its Board of Directors.

8. All of the terms and provisions of this Agreement shall be binding upon and shall inure

to the benefit of the parties hereto and their respective successors and assigns.

9. This Agreement may be executed in one or more counterparts, each of which shall be

deemed an original and all of which taken together shall constitute one and the same

instrument.

10. In any action or proceeding which a party may be required to prosecute to enforce its

respective rights hereunder, the unsuccessful party therein agrees to pay all reasonable

costs incurred by the prevailing party therein, including reasonable attorney's fees, to be

fixed by the court, and said costs and attorney's fees shall be made a part of the

judgment of said action.

11. This Agreement shall be governed by and construed in accordance with the laws of the

State of Arkansas and it supersedes any and all prior agreements, arrangements or

understandings with respect to the subject matter hereof.

12. No provision of this Agreement may be waived except by a writing signed by the party

to be bound thereby and any waiver of any nature shall not be construed to act as a

waiver of subsequent acts.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year

first written above.

INSTITUTION:

____________________________________

Bank Name

____________________________________

City, State, Zip

Address for Notices:

____________________________________

ATTEST:

_________________________________ ____________________________________

Signature

____________________________________

Title

DEPOSITOR:

____________________________________

Treasurer Name

TREASURER OF _______________________

County

Address for Notices:

____________________________________

ATTEST:

__________________________________ ____________________________________

Signature

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County Security Agreement (Arkansas State Treasury)

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