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HomeMy WebLinkAbout2022-0718B Depository Pledge Extension with ProsperityResolution No. 2022-0718B Extension of Depository Pledge Agmt Prosperity RESOLUTION NO. 2022-0718B AUTHORIZING EXTENSION OF TERM OF DEPOSITORY PLEDGE AGREEMENT THE STATE OF TEXAS COUNTIES OF DENTON AND TARRANT § WHEREAS, TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (the "District") is a political subdivision of the State of Texas, operating under Chapters 49 and 54, Texas Water Code, as amended (the "Code"); WHEREAS, Section 49.156 of the Code provides that the board of directors of a water district, by order or resolution, shall designate one or more banks or savings associations within the State of Texas to serve as the depository for the funds of the district, and further provides that the board may authorize a designated representative to supervise the substitution of securities pledged to secure the district's funds; WHEREAS, the Board of Directors of the District previously designated Prosperity Bank (the "Bank") to serve as a depository for the funds of the District, and in connection therewith, entered into that certain Depository Pledge Agreement effective October 1, 2020 (the "Devository Pledge Agreement") between the District, the Bank and the Federal Horne Loan Bank of Dallas, Irving, Texas, as custodian of funds pledged collateralize the deposits of the District at the Bank; WHEREAS, the term of the Depository Pledge Agreement is two years (expiring September 30, 2022), but may be extended at the discretion of the District for up to an additional two (2) year term; and WHEREAS, the Board of Directors of the District desires to extend the term of the Depository Pledge Agreement for an additional two (2) year term. NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: Section 1: The facts and recitations found in the preamble of this Resolution are hereby found and declared to be true and correct and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. Section 2. The selection and designation of Prosperity Bank as a depository for the funds of the District is hereby approved and confirmed. Section 3. The Board of Directors hereby approves the extension of the term of the Depository Pledge Agreement for an additional two (2) year term expiring on September 30, 2024. Section 4. The General Manager is hereby instructed to deliver a copy of this Resolution to the Bank and is authorized to take such other actions as may be necessary to extend the term of the Depository Pledge Agreement in accordance with the terms hereof. 1 of 2 ADOPTED as of the (May of ` Doug Harper, Sectary/Treasurer Board of Directors 2 of 2 Resolution No. 2022-0718B Extension of Depository Pledge Agmt Prosperity , 2022. <l Kevin R. Carr, President Board of Directors