07-08-1985 Council Packet - Laserfiche WebLink

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4 Memo #85-25 TO: Mark Bernhardson, City Administrator FROM: Tom Kuehn, Finance Director DATE: July 2, 1985 STING JUL 8 1c�'35 CITY V INWAD SUBJECT: Retention and Destruction of Paid Bonds and Coupons of Certain D?bt Issues by the Paying Agent The City of Orono has bond issues which are bearer bonds and have the physical coupons attached. As each bond and/or interest coupon matures the paid bonds and coupons are cancelled by the paying agent and returned to the City. We how have the alternative, under state law, to enter into an agreement with the paying agent, whereby the paying agent will cancel and destroy all paid bonds and coupons, as provided by state law. I feel this is an attractive alternative to the present system because we will no longer need to provide storage and schedule destruction, nor will we need to check out each batch of cancelled bonds and coupons, a time consuming procedure. At this time Norwest Bank Minneapolis offers the service of retention and destruction at no additional fee and is the paying agent for several of the issues outstanding. I recommend adoption of the attached resolution authorizing the City to enter into an agreement with Norwest Bank Minneapolis to perform the following: Norwest Bank Minneapolis will: 1) Retain for two (2) years the physical coupons and bonds 2) Provide the City with a detailed statement of paid items 3) Provide secured storage, ensure crem.zion and issue destruction certificates for each maturity cycle 4) Retain destruction certificates six years after the life of each issue 5) Indemnify the City against any loss sustained by reason of duplicate payment, wrongful and improper payment to unauthorized persons and non-payment to authorized persons occurring as a result of any destruction of bonds or coupons TO: Mayor and City Administrator c FROM: Mark Bernhardson, City Administrator Forwarded recommending approval.