HomeMy WebLinkAboutTR-69-83 a�z f D_f Report #4
CORPORATION OF THE TOWN OF NEWCASTLE
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L1C3A6 TELEPHONE 623-3379
REPORT TO THE COUNCIL MEETING HELD SEPTEMBER 26 1983
TR-83-69
SUBJECT: DEPOSIT INVESTMENT ACCOUNT
RECOMMENDATIONS:
1 . That this report be received; and
2. That the attached by-laws to execute two agreements with
Canadian Imperial Bank of Commerce to establish two
Deposit Investment Accounts be approved.
BACKGROUND AND COMMENT:
As a result of a change in the interpretation of the Canada Bank
Act, it has become necessary for the Town to establish two new
bank accounts effective October 1 1983. This change in banking
will allow the Town to continue to receive interest on its surplus cash.
The only changes which will occur, will be the establishment of a
deposit only account from which draws will be made daily, to zero balance
the current chequing account. The separation of funds allows the: bank
to pay interest on the deposit account as a notice account which
is considered to be similar to term deposits.
Respectfully submitted,
KAC:nof Kathr Campbell , C.A. , B.Comm. ,
Treasurer
att - by-laws
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THE CORPORATION OF THE TOWN OF NEWCASTLE
BY-LAW 83-133
being a by-law to authorize the execution of
an Agreement with the Canadian Imperial Bank of
Commerce
The Council of the Corporation of the Town of Newcastle
HEREBY ENACTS AS FOLLOWS:
That the Mayor and Clerk are hereby authorized to execute on
behalf of the Corporation of the Town of Newcastle and seal
with the Corporation Seal , an Agreement between the Canadian
Imperial Bank of Commerce and the said Corporation, to establish
a Deposit Investment Account for the Reserve Account, terms as
shown on Schedule "X".
By-Law read a first time this 26th day of September 1983
By-Law read a second time this 26th day of September 1983
By-Law read a third time and finally passed this 26th day of September 1983
~_ ayor
'Clerk
S
0 9
File No.._._._- -
SCHEDULE I"II TO BY—LAW 83-133.mw i l mN n„m i
BUwMANVU L,oN I
ll L IC 3K8�L
CANADIAN IMPERIAL
BANK OF COMMERCE
September 20, 1983.
The Corporation of the Town of Newcastle,
40 'Temperance St . ,
Bowmanvill.e , Ontario.
L1C 3AO
Dear Sir:
RE: DEPOSIT INVESTMENT ACCOUNT AGREEMENT
Relative to the establishment of a Deposit Investment Account to be operated
on behalf of The Corporation of the Town of Newcastle hereinafter referred to as
the "Customer" we note below the terms for operating the account:
I . All deposits will be credited to the Deposit Investment Account.
2. No cheques are to be written on the Deposit Investment Account.
3. As necessary, the Bank will create debit entries to transfer
sufficient funds from the Deposit Investment Account to the
Operating /Disbursement Accounts as recorded on Schedule "All
attached, to bring the closing balances of these accounts to
zero each day. Other such Operating/Disbursement Accounts may
be added to the system as required, upon receipt of advices
from the "Customer" Ln writing.
4. The "Customer acknowledges that the Bank reserves the right
of requesting 24 hours notice of intended withdrawal of funds
from this account.
5. The "Customer" retains the right to request that part or all
of the balance in the account be transferred to the General
Account, on 24 hours notice.
6. The maximum daffy closing balance in this account which will be
recognized for interest purposes will be $6,000,000.00.
7. Other than for ordinary operating funds, the "Customer" indertakes
to advise the Bank at least 24 hours prior to making any deposits
in excess of $750,000.00.
8, Interest will be calculated and paid monthly in arrears on
-z-
Deposit Investment Account Balances in accordance with
banking arrangements established from time to time.
9. Interest will be credited to the Deposit Investment
Account.
Kindly acknowledge receipt of this advice, and your concurrence with the
terms by signing and returning the attached copy of this agreement.
Yours truly,
J. A. Eaton
dE/bs Manager.
Date: y�,_�a✓ �,/j'J-;
We acknowledge receipt of this agreement and concur with the terms.
CTIP ORATION of Cilia, T 13VIN of NEWCASTLE
/74"y'Gjt
SCHEDULE"A"
DEPOSIT INVESTMENT ACCOUNT (D.I.A.)
AGREEMENT DATED : fi ryw. � 2
ACCOUNT TO BE ZERO-BALANCED DAILY TO THE D.I.A.
(1) GENERAL ACCOUNT ##26-00617
(2) COUPON & DEBENTURE ACCOUNT ##26-00919
THE CORPORATION OF THE TOWN OF NEWCASTLE
BY-LAW 83-134
being a by-law to authorize the execution of
an Agreement with the Canadian Imperial
Bank of Commerce
The Council of the Corporation of the Town of Newcastle
HEREBY ENACTS AS FOLLOWS:
That the Mayor and Clerk are hereby authorized to execute on
behalf of the Corporation of the Town of Newcastle, and seal
with the Corporation Seal , an Agreement between the Canadian
Imperial Bank of Commerce, and the said Corporation, to establish
a Deposit Investment Account for the General Account and the
Coupon and Debenture Account, terms as shown on Schedule "V.
By-Law read a first time this 26th day of September 1983
By-Law read a second time 26th day of September 1983
By-Law read a third time and finally passed this 26th day of September 1983
ayor
Clerk '
File No.
I iu SCHEDULE "X" TO 6Y-LAW 83-1A4
:�Gimt' ri l i i K NG AND It(viPLRAN
A1Pf �(Ii IMX
I OWNIANVIIII W
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CANADIAN IMPERIAL
BANK OF COMMERCE
September 20, 1983 .
The Corporation of the Town of Newcastle,
40 Temperance St. ,
Bowmanvi Ile, Ontario.
L1C 3A6
Deer Sir:
RI': DVI1OSfT 1NVIsS'1'MENT ACCOUNT AGREEMENT
Relative to the establishment of a Deposit Investment Account to be operated
ou behalf of The Corporation of the Town of Newcastle hereinafter referred to as
the "Customer" we dote below the terms for operating the account:
1 . All deposits will be credited to the Deposit Investment Account.
2. No cheques are to be written on the Deposit Investment Account.
3. As necessary, the Bank will create debit entries to transfer
sufficient funds from the Deposit Investment Account to the
Operating/Disbursement Accounts as recorded on Schedule "A"
attached, to bring the closing balances of these accounts to
zero each day. Other such Operating/Disbursement Accounts may
be added to the system as required, upon receipt of advises
from the "Customer" in writing.
4. The "Customer" acknowledges that the Bank reserves the right
Lit requesting 24 hours notice of intended withdrawal of funds
from this account.
5. The "Customer" retains the right to request that part or all
of the balance in the account be transferred to the General
Account, on 24 hours notice.
6. The maximum daily closing balance in this account which will be
recognized for interest purposes will be $6,000,000.00.
7. Other than for ordinary operating funds, the "Customer" undertakes
to advise the flank at least 24 hours prior to making any deposits
in excess of $750,000.00.
8. Interest will be calculated and paid monthly in arrears on
i
l
-2-
r
1
Deposit Investment Account Balances in accordance with banking
arrangements established from time to time.
9. Interest will be credited to the Deposit Investment Account.
Kindly acknowledge receipt of this advice and your concurrence with the
terms by signing and returning the attached copy of this agreement.
Yours truly,
A. Eaton
JE/bs Manager.
Date: �^-1 � � y, j/_?
We acknowledge receipt of this agr T++„ �po� u*� i ,?j�IftNE�ASTLE
r 1� `' ,u, U
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SCHEDULE "A"
v DEPOSIT INVESTMENT ACCOUNT (D.I.A.)
AGREEMENT DATED✓�, yy„,�z-;� ��G /����
ACCOUNT TO BE ZERO-BALANCED DAILY TO THE D.I.A.
1) RESERVE ACCOUNT #26-01818