HomeMy WebLinkAboutResolution - 98-10B RESOLUTION NO. 98- IOB
I-MMW
RESOLUTION OP' THE CITY COUNCIL OF THE
CITY OF SANJACINTO, CALIFOICNIA AUTHORIZING
A WIRE TRANSFER AGREEMENT BETWEEN THE CITY AND
THE BANK OF -HEMET
WHEREAS, the City Council has reviewed copies of the proposed Wire Transfer Agreement
("Agreement"), to be entered into by the City and the Bank of Hemet ( --Bank"); and
WHEREAS, the Council has determined that its participation in the Bank's wire transfer activjtN
will be on the termsand conditions set forth in the Agreement.
THEREFORE, IT IS HEREBY RESOLVED:
1. It is in the best interest of the City to participate in wire transfer activity, to include
submission of wire transfer payment orders ("Requests"), such participation to be on the tcriiis
and conditions set forth in the Agreement, and
2. The Council authorizesand directsan authorized officer of the City, for and on behalf of the
City to negotiate. execute and deliver the Agreement and any renewals or amendments thereof.
with such terms. covenants, and conditions as such officer or officers executing the Agreement
on behalf of the City may approve, such approval to be conclusively evidenced by the execution
and delivery of the Agreement, and
3. The Council 1-.as considered the Security procedures contemplated by the Agreement, and
finds that such security Procedures aFe COUninercially reasonable procedures for verifying that a
Request or other communication purporting to have been issued by the City as originator is in
fact a ReqUeSt Of tile City. In reaching this determination. the Council has considered the size.
type and frequency of Requests that the City anticipates issuing to the Bank, and
4. The Council is aware that the Bank may have available alternative security procedures that lily
provide a greater dtgree of certainty for verification of the authenticity of a Request, and
authorizes and directs an authorized officer ofthe City to disclose to the Bank theSi7e, typeand
freqUeRCV of Requests thaL tile CitV anticipates issuing to the Bank, to review altemative security
Procedures available fiorn the Bank, and to consent to and agree to the use of the security
procedures set torth in the Agreement as submitted to the Council only after determining that
such procedures are appropriate for the City, such determination to be conclusively evidenced b�
the eXeCUtiOn and delivery of the Agreement: and
5. The Council authorizes and authorized officer in cortriection with the Agreement (a) to
initiate. cancel. conform or verify the authenticity of Requests, whether-given orally,
ftr�
electronically- written or by facsirnile instructions: and (b) to designate to any such persons. as he
or she deems appropriate: and
6. The Council authorizes all authorized officer in connection with the Agreement to deiegatt
any of the authorities granted to him or tier tinder these resolutions to one or more persons and to
revoke any authorization gi anted to any such person. as lie ca she deeni s appropriate; and
7. The Bank is authorized to act and rely on these resolutions until it actually receives written
notice of their amendment or revocation-, and
8. As used in these Resolutions, the term, "authorized officer ofthe City" shall mean the
following acting wparately:
Title Name Signature Initial
a. Interin) Finance Director Georg eriel
c 11. Ka
b. Financial Supervisor Anne M. Hallb
c. Interim City Manager Habib Mottagah
d. Mavor James L. Smedley
e. Vice Mavor Deborah M. Corn it
APPROVED AND ADOPTED this 19th (Jay of March, 1998.
Aves: Councilmembers Conner , Cornett , rood , Williams tR Sipedlev
Noes: N o it e
Abstain:N c n e
Absent: None
�Ull- &LAV
MayorI
ATTESrl-: May(,
Pamela L. Lee, Citv Clerk
City Clerk
THE BANK OF HEMET
WIRE TRANSFER AGREEMENT
NNW,
11�2 5/96
a
low THE BAINK OF HEMET
WIRE TEANSFER AGREEMENT
This Wirt Transfer Agreement ("Agreement") is dated as of Mar& 16, 199�andis
enter-.6 into between- Cityoof San Jacinto _, a Governmental j"Customer")
and The Bank of Hemet "'Bank"). This Agreement is made to set out the terms under which
Customer may transftr funds from Customer-designated accounts.
Bank and Customer agree as follows:
I. Wirt 7ransfer Requests. Customer may submit wire transfer payment orders
("Requests") in accordanceAith the terms and conditions of this Agreement. Requests may be made
f'or a pr- L� I U
-arranged or anon-prearran(-ed wu- iTansf-r. A pr-arrange6Wire T-anst`er allows Customer
to wire transfer ftinds [�om one prei3elected Customer-designaied account to a pr-ldetermined
destination on a recumna basis. A rion-pr--arr-anged ,�,�irt ,�ransfer allows Cusiome- to wire transfer
f.inds from any Customer-Liesignatcd account to any desiinaiion as requestecil-ly Customer, Subject
to security procedures, Bankwill execute wire transfers in accordance with Requests received frorn
aut�onzLd customer representatives("Authorized Agents"), whether such Requests are 'NTiu-In, orall.
telephonic or by facsimile, unless otherwise specifically agreed in writing. Bank shall be entitled
to reiv upon any Request reasonably believed to be given by an Authorized Agent and to act upon
anY such Request received. Customer agrees that any arrangements with Bank to require one or
autnorized sianatures for transactions involvirio Customer's accounts do riot apply to Requests
under C-ns Agreernent. Fully and finally collected funds must be availabie in the account spec;',.led
in the Request at the time the Request is made.
2. Securitv. Customer agrees that the Bank's security procedures, as set forth in
Schedule A., are commercially reasonable and are appropriate for Customer's needs and will provide
Custorncr with the degree of protection reiatiVC tD CUStomer's ability to accept the inherent risk of
the execution bv Bank- of an unauthorized Or erTODCOLS InSti-LICLIDII received by the Ban,�, as long, as
the Bank acts on the Request in good faith and in a fashion consistent with the otaer terms of the
Agreement. if ffimk acts on a Request in comphEince with the security procedures. then Customer
will be obligated on the Request and it will be tteated as Customers' Request. whether or not
authorized by Customer. ne security procedures may be changed by Bar�-c from time-to-time.
Bank may assign to Customer one or more confidential codes or passwords. When sn
assigned, Requests without the correct code or password will not be executed by Bank, Customer
is responsible for maintaining the confidentiality of the security procedures, including any codes or
passwords. Customerv%till notify Bank immediately in the event Customer suspects that any security
procedure used to verif� the authenticiry of Requests (including but not limited to any confidential
code or password) has beeri or may be compromisel or rendered ineffective.
1 V25,96
Customer agrees that messages (including telephonic or facsimile messages) received by
Bank, will be treated as writings signed by Customer, and will control in the event of any differenc�-
with the records of the Customer.
1. - -ifine. Customer must oav Bank
paynier't �o Bank. Unless otherwise ae-reed to in wr
the amount of any wire transfer, plus any applicable fee, before Bank will execute the Request.
Bank's wire transfer fe-Is are subject to change.
4. Accepig;&� and Execution oF Requests, A Request is considered exlecuted when
Bank executes it. A Request must be received by Bank prior to Bank's deadline for wire transfer
requests.. currently 11:00 am. locai time of Bank, but subject to change. A Request received after
this time will be executed the next business day other than Saturday or Sunday that Bank is open for
business (a "Business Day").
Bank may r-:Ject a Request for any reason or for no reason, inc!uding insufficient collected
funds in the account specifed in ihe Request (the "Account"), inability to verifv the amhenticily of
the Request in accordance with applicabiusecur-ity procedures, the Request is believed to contain
incorrecc, incompleie or amoicnious info=, adon, or Bank oLber-�vise believes Rtque5t may noc be
authorizec bv Customer, Bank will notity Customer by phone if Bank rejects a Request.
Customer may not be able to.amend or cancel a Request after the Request has been received
by Bank. Bank may at its discretion use reasonable efforts to act on Customer's Request for
'b t =,Ore. cu�tr�rner \"ill
.mendr-�-- c-r canc.-Ilaiien. but will itot e liable if i( dc s so. Furh
�nddmn;-".., andhold F�a.,k lh,=les� T'a�manyandall may i-�cur
in its amendment or cancellatior, efforis.
When a Request contairis a name and account number,paymeat may be made by Bank andJoT
by other banks to which a Request is forwarded based solely on the account number -even if the
account number identifies a beneficiary different from the bcncficiary named by Customer.
Customet a6-nowledges ihat Bank and other bar�,s to which a Request is forwarded may rely on any
bank idendflIcation number supplied by Customer as a means to iden[i& any ocher bank, even if the"
identification number is different than the bank named by Customer. CUSLOMer'5 obligation to Pay
the amount of the vvi:-- transfer to Bank is not excus.-d in such circumstances.
Customer acknowledges that any Request executed by Bank will be subject to rules and
regulations applicable to payment orders, including recorkeeping and information transmittal
1 0
requirements under the federal Bank Secrecy Act and its implementing regulations. Customer
acknowledg-.s and agrees that Bank may capture and transinit information regarding Customer (for
example, Customer's name, address and account number) and regardim, any beneficiary (for
example, beneficiary's name, address, other berieficiary identifiers, and beneficiary's accourit
number) as part ofthe processing of a payment order. Custorricr agrees to as5isl Bank in connection
with any requirements imposed on Bank in Edfillino Bank's oblioations in this re ard.
11/25/96 2
5. Account Reconciliation. All wire transfers will be reflected on Customer's periodic
statement. Customer agrees to notify Bank promptly of any discrepancy between Customer's records
and the information shown on any such statement. If Customer fails to notify Bank of any such
discrepancy within 14 calendar days of receipt of statement containing such information. Customer
agrees tha�Bank shalt not be liable for any other losses resultina from Customer's failure to give
such nctice or any loss of interest with respect to a wire iransfer that is or should have been shown.
If Customer fails to notify Bank of any such discrepancy wiihin one year of receipt of such
statement, Customer will be precluded from asserting the discrepancy against Bank,
6. Wire Transfer Nletho . BarLk mav use Ftdwire or any other means of transmitting a
Request. Bank will not be responsible for failing to act or delay in acting if such failure or delay -is
caused by legal constraint, interruption of transmission or corn municatio n faciiities, equipment
failure, war,emergency conditions or other circumstances beyond Bank's control. In addition, Bank
shall be excused from failing,to accept, execuie or settle with respect to a Request if so to do would
result in the Bank's havinQ excdcded any limitation upon its intra-day net fands position established
pursuant to DTesent or future F-Cc'eral ReserNe� juidefiries or in Ban-k's other,�F-.se violating any
provisi.on of any present or furure risk conrrQi program of the Federal Reserve or any rule or
regulation of any other U.S. or state governmental reguiatol-; authont"'.
7. Liabilitv. Bank will exercise retisonable care in processing Requests. Customer will
exercise reasonable care in observing security procedures, examining statements and records, and
initiating Requests. Customer is responsible for ensuring the accuracy of Requests, and Bank has
no duty to verify accuracv of a Request, nor will it be liable for any losses or damages arising out
of Requests that contain erroneous information.
In no event shall Bank be liable for any consequential, special, punitive or indirect loss or
damaae which Customer mav incur or suffer in connection with this Aurcemenc, includina without
limitation loss or damage from subsequent wrongful dishonor resulting from Bank's acts or
omissions pursuant to this Ag"ment.
Provided that Bank has complied with this Agretineut. Customer agrees to indemnify md
hold Dank and Bank's directors, off-cers, employees, agents and attorneys harmless against any clain
of a third pany arising from ar in connection with this Agreement or Barl-'s performance of wire
transfer-services for Customer. Customer agrees to take any and all reasonable action to mitigate
any potential or actual Bank loss or liability hereunder.
Customer will be Eable for any losses or damages rCsuhing from Cu5torriev's breach of this
Aureement or to which Custorner's negligence contributed. or which resulted from unauthorized,
fraudulent or dishonest acts by Customer's current and./or former Authorized Agents (including
instances where an Authorized Agent acted to the detriment of Customer)
S. Anler,�_merits, From time-to-time, Bank may airiendmy of the terms and conditions
contained in this Agreement, including without limitation, any cut-off time, any business day, and
1%W
any part of Schedule A. SUCIL amendments shall become effective uFon r=cipt of notice by
Customer or such later date as may be stated in Bartk's notice to Customer-
9. Notices. lns.M4ctiqns. Etc. Bank shall be entitled to rely on any written notice or other
written communication believed by it in good faith to be genuine and to have be-In signed by all
Authorized Agent, and any Such comrnunication. shall be deemed to have been signed by such
person. Tac names and signatures of Authorized Agents are set forth in Schedule A. Customer may
add or delete any Authoriz.-d Agent by written notice (including Board of Director resolution or by
substitu'ing a new Scheduie A) to Bank in form acceptable to Bank. Further, it is expressly
undt;rstoo�i and ageed that until the Bank is �n receipt of an amended Schedule A, or written notice
to amend Schedule A changing Authorized Agents, it Will continue to act :)LIZSUant to designations
as indicated on the Schedule A on File ai Bank. -A-n amended Schedule A vv�ll revoke all previous
authc ri zat ions. Such noticc shall be effective on the second Business Day foilo%vin2 the day of
Bank's receipt thereof, unless offiQrwise specifically agreed to by Bank.
Exc-1pt as othe�wise expressly -rovide� herein. ally written notice cr othe� %,,7,-,ten
conunurtication required or permitted to be given under this Agreement shall be delivered, or sent
by United States registered or certified mail., postage prepaid, or by express clarrier, and, if so
addressed to:
The Bank of Hemet
1600 E. Florida Avenue
Hemet, Ca. 92544
At:e-ition: Customer Service Mariager
a-ad, if to Custornler. addre6z�cd to:
201 E . Main Street
�an Jacinto , CA 92583
Habib MOtIdUh
Attention:
unless another address is substituted by notice del�vtred or sent as provLded licruin, Except as
other-wise expressly prwided herein, any such notice shall be deerned civen when received,
1 0
10. Term and..Le-mriation. The term of this Aoreement shall begin on the dav a copy
of thle Agreement sinne� by Customer is delivered and executed by Bank, and shall end at 12�O I
C I
a,rn., local time of Bank, or. the first anniversary thereof' Unless othervise ten-ninated by either
party as set forthbelow, this Agreement shall renew for successive terms of one Year each.
*OW
1:/25�96 4
Customer may terminate tHs Agreement at any time. Such termination shall be effective on
the second Business day following the day of Bank's receipt of written roticc of such termination
(unless Bank otherwise specifically agrees to earlier termination) or such later date as is specified
in that notice. Bank reserves the right to terminate this Agreement immediazely upon providing
written notice of such termination to Customer.
11. Entire Aareement. This Agreement(Including Schedule A, which is attached hereto
and incorporated herein), togcther with the azicement oyoverriLagg the Account tthe "Account
Agreement"),is the complete and exclusive statement of the agreement berween Bank and Customer
with respect to the subject matter hereof and supersedes any prior agreement(s) between Bank and
Customer with respect io such subject matter. In the event of any incomistency between Terms of
this Agreement and the Account Agreement, the terms of tEs Agreement shall govern. Customer
agarces that all wire transfersAill zemain subject to and limited �yany ilmitaTions on The number of
transfers to or from that Account, as set forth in the Account Aoreernent.
12. Governing T-a � This Agreernent shall be construed in accordance"ith andorovcmcd
bv the laws of the State of CaliforrTia. includin!-7 but riot limited to Division I '- of the California
Commercial Code.
IN WITNESS WHEREOF the parties hereto have CaLlSed Lhi� Agrt�caient to be executed
by their duly authorized officers.
City of San Jacinto
CUSTOME
Bv
Name Hab � b Motla'gh
Title Acting City Mayiager
THE BANK OF HEMIET�
av By
Name Name
Title Titl�
'To be�igned bv ihe approprini� Bank officcrs m accurdancc wkh Operakiotis Pc6cy Procedure.
NW-
I i/25i96
SCHEDULY A
1. AUTHORIZATION.
Bank is hereby authorized to wire transfer funds upon and in accordance wjzh Requests provided by any one of the following named
officers or authorized agents(singularly or collectively, an "Authorized A-crit")of the undersigned.
Account L.(#) 49 1 R q�460 1 Acenunt Name General
Authorized Authorized Agent Authorized Azent Amount AuEh i��
..........
Agen ame Title si-nature Limitation Level" ..............
N
200 000 1 1
George H . Kaene', Firiarce Dir .
1- 1 n a r c e
Anre Hallbertl 100 000 1
Su pe r v i sor ... ....
...... ....
Interim lity V
HabiD Motlagh Mana(ier
75-y V
James L . Smedley a—o r
:LDebbie M . Cornett I Vice IN a y c)r p
Account 2. (9)— Aecount Name
A ud Uchor, ]3ack.use.
icrized Authoriz!t A ent Authorized Azent Amount
A�p!t Title Limi:ation� ee,
Account 1 Account Name
abk use on�y
—Azen,Name Simnaturc imitation Level**
I Authorized A uthori ztd A Authorized AmQLM Auc�orit-�
.... .......... .
. ............ . .
. ..........
B� Bank i5 herehy authorized to accept Requcsts from Customer by: Phone Fax Letter bv LIS Nlail)Cour�er
Bank is also authorized to accept in-persoil Pquests by an Authorized A,gerit to initiatt R�-qLeSLS.
SPECIAL INSTRUCTIONS: (Indicate here any instTuctions or re�;trictions pertaining to an� specific Authorized Agent listed above
ni lir,,.�ions apply only to a non-prearranged transfer. Amount limitations for prearranged transtcrs are set in Section III below by
dd�,non.
**Authority level indicates the individua�'s abilit� co initia-,e or veri�i%vir-transfer��, enter the appiicable code! I �initiate V-verify B-botri
it/25(96 Initial Date
�CHEQULZ A - 170NTFV[ rED
SECURITY PROCEDURES FOR NO'%-PREARRANGED REQUESTS
lw�
1�Ticri-:r2arranaed Request ailows the Customer ic'-%ire urtinster.-unds fi-orn any(if the desizna:,a acccurus fisted above to anv destination reuuested
:v C.siomer.
A. Basic Procedures
Zusiorne,understands and azrets that the a-amenticiry of all riuri-2rear-angeq R:!quesiS Wtjl '�e Verified pLrsuam to the Coilowing security
�=cecl.lres:
Bank wflI require ihe Authorized A�enr making a Request to provide h4,her -ersonai identification and will verify the same
agatnist the Bwk's information on fle;
Bank will require the Authorized Agent makins! a Reauest to provide a numeric value with each Request. -Me a=eric value
wTli.be calculated according to a formula provided by Bank�
3. Bank will verify the authendeity of'he Request by calculating a numeric value, -i�Lne the �ame formo la provided!o Customer,
and compirin� this value to the%a�uQ provided bv me Authorized Agent.
4. Bank will place a cail back to[he Customer and request verification of the authenticity of-.he Request. Bank will obtain persona�
identification and a nurneric value from the Authorized Agent designated to verify a Request. Bank will call only the telephone
number designated by Customer. If no respocisc is rcce:vct fircm -'L51'-'nated telephone number, or if verification
cannot be obtailacd in accordance with the spcurity procedure3, Gftn-�will rr-3t!tc R.,
,quest as unauthorized and will not execute
the RtquCSL
Telephone number for cail back veriflication: H a b i b MG t 1 a a h 654- 7342
,%W 7anies L . Smedley 654-9449
3. Optional Procedures Debbie M . Cornett 654-0259
At th�Customer's option, the Bank will per-'crnu the additional security procedure:s as indicated below by checking. one of the following�
I X We agree that the Barik's security procedures ]is-.cd above are commercialiv reasonable and do not require additional
security procedures-
We elect to have an additional unique employee code prDvided to each Authorized Agent. This unique employee code
will be required by the Authorized Agent making the Request and the .\uLhorized Agent verifying the Request.
C. Authorized Agents Designated to Verify Authenticity of Request
Customer may elect to require verificat.-on by an Authorized Agent other than the Authorized Agent responsible for initiation of the
Request. NOTE: THE BANK RECONCVMNDS CALL BACK VERIFICATION BY A SECOND AUTHORIM AGENT AS A
MMMUM LEVEL OF SECURITY. Please check=of the following:
Call back may be verifled by any Authorized Agent, including the Authorized Agent who initiated tbv Request.
may be veriF:e--� Drilv bv an Authorized A-ent other than ire ucho,4zeJ A2tnt,.v�o in�iiated ihe Request
X Call back
D. Customer Responsibility to Review
Customer has considered the Securii-'Y Prc-dures contemplated for rion-prearran.utd R�-,ue�rs, and fLnds that such security procedures
are. commercially reasonable. Customer ua.ets that the purpose of the Security Procedures is to verifythe authencic1tv Of Reaue.9ts and
not to detect an urror in the Request. and t�ar no security procedure for the detection of such errors has been agreed upon by i3ank and
vftw
Customer, In reaching this determination. the Customer has considered the size, type and frequenry of Requests that the Customer
anticipates.
11125/96 Initial Date
SCHE T EA -C0N7TNJ-EL)
T11. SECURITY PROCEDURES FOR PREARRANGED REQUESTS
R-�JUESI- SOMeliraeS feferreci to as a recurrini-,Reauest. allows a Customer to wire Transfer ftmds ",-)m orie desiLynarcd account li5ied
,Ii)ovew a..�mae!ermsnLa a�slinafinri.
A. Basic Prricedures
Customer unaerstands and atyrees tat the auiheruicil� -�f ail Drear-arlae�. Re2LICST3 %V1i ri�,, pursuant to 'the "cii0wing secul
procroures:
1. Bank wfil require the Authorized Agent making a Request to provide his/bcr per5anai identification and will verify the same
against the Bank's inforananon an file;
2. Bank will require the Authorized Aztnt making a Request to provide a numeric value with each Request. The numenc value
"Vill be �atculztcd according to a formula provided by Bank;
Bank will veTify the authenticitv of the Reauest by calculating a numeric value, using the same formula provided to Customer,
arid comicaring this value �o the vaniv provided ov the Authorized Aczznt.
3. Optional Procedures
At CLSZOTFICT'S Option, the Bank will perform the additional security procedures as indicated below. Flease check ah that apply:
I. X We agree that the Bankrs security procedures ilsted above are commercially reasonable and do not require additional
security procedures.
2. We elect to have an additional tin ique enarloyee code provided to each Aurh orized Agent. This unique employee code
1%W will be required by the Aut�horrzed Agent rrakin2 the Request and the Aumorized Agent:veri�Yiwi the RVC[LeSt if the
call back verification below is scleczcd.
Customer elects the Bank to place a call back to the Customer and reqUeSt VerifiCaEiDn of the authenticity of The Request.
Bank will obtain personal identification and a numeric value from the Authorized Agent designated to verif� a Request.
Bank will call only the telephone number designated by Customer. If no response is received from Customer's
designated telephone number, or if verification cannot be obtained in accordance with the security procedures, Bank
will treat the Request as. unauthorized and will not execute the Request. If this option is selected, you must also
complem Section C below.
Telephone number for call back verificacion:_
C. Authorized AgenO Desiguated to V�rify Authentici(y of Request(complete only if B3 above is se[ecmd)
Customer may elect to require verification by an Authori=d Agent other than the Authorized Agent responsible for hiitiation of the
Request. Please check gM of the following:
Call back may be verified by any Authorized Agent, including the Authorized Agent who initiated The Request.
X Call back may be verified only by an Authoriz2d Agent other than the Authorized Agent who initiated the Request.
CUStOMeT Responsibility to Review
Customer has �:onsidered the Security Procedures coritcmplatpd for prearranged Requests, and finds that such security procedures are
commarc;allv reascriable. Customer a,rE!,ZS that the purpose of the Secur�ry Proc'-dures is to veri��the 3uthenticity ofRe�utsts and not
to detect an error in the Request. and that no sec:uriry p-ocedure for the� cietection of such errors laas. been agrted upon by Bank and
Customer. It: reaching this determination. the Customer has considered the size, type and frequency of Requests chat the Customer
antictpares.
11,25196 Initial Date
1Z