Security Agreement (Form Public Deposit) - Connecticut

This fillable "Security Agreement Template(Form Public Deposit)" is a document issued by the Connecticut Office Of the State Treasurer specifically for Connecticut residents.

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S
C
TATE OF
ONNECTICUT
O
S
T
FFICE OF THE
TATE
REASURER
SECURITY AGREEMENT
(FORM PUBLIC DEPOSIT)
This SECURITY AGREEMENT (the “Agreement”) dated as of ____________ , 200_, is
made between [Name of Bank] (the "Bank"), a ________________________ , having an
address at _________________________________________ , and the STATE OF
CONNECTICUT, acting through the Treasurer of the State of Connecticut pursuant to Sections
3-11a and 36a-333(b) of the Connecticut General Statutes, having an address at 55 Elm Street,
Hartford, Connecticut (the "Public Depositor").
WITNESSETH:
WHEREAS, the Bank is a qualified public depository as defined in the Protection of
Public Deposits Act, Conn. Gen. Stat. §§ 36a-330 et seq. (the "Act"); and
WHEREAS, Public Depositor from time to time makes deposits, as said term is defined
in Conn. Gen. Stat. § 36a-330(4), in the Bank (its "Public Deposits"), which Public Deposits shall
from time to time aggregate in excess of One Hundred Thousand and No/100 Dollars
($100,000.00); and
WHEREAS, the Public Depositor desires to have its Public Deposits secured by
collateral in the amounts required by the Act; and
WHEREAS, the Bank has agreed to secure the Public Depositor's Public Deposits by
granting to the Commissioner of the Connecticut Department of Banking (the "Commissioner")
and the Public Depositor a security interest in certain collateral ("Eligible Collateral") owned by
the Bank, which collateral meets the requirements described in Conn. Gen. Stat. § 36a-330(1) ,
as permitted by 12 U.S.C. § 90 and the Act;
NOW THEREFORE, in consideration of the Public Depositor depositing its Public
Deposits as herein described, and for other good and valuable consideration, hereby
acknowledged as received, it is hereby agreed between the Public Depositor and the Bank as
follows:
1.
Pursuant to Part III of Chapter 665a of the Connecticut General Statutes and in
order to secure the Public Depositor's Public Deposits, the Bank hereby pledges, assigns,
transfers and grants to the Commissioner and the Public Depositor a perfected first priority
security interest in such amounts of the Eligible Collateral described in the Custodial Trust
Agreement (the "Trust Agreement"), which Trust Agreement is attached hereto as Exhibit A and
which the Bank hereby certifies has been executed by the parties thereto, as is necessary for
the Eligible Collateral pledged hereunder to have a minimum market value in relation to the
Public Depositor's Public Deposits, plus accrued interest, to meet the collateral ratios and other
S
C
TATE OF
ONNECTICUT
O
S
T
FFICE OF THE
TATE
REASURER
SECURITY AGREEMENT
(FORM PUBLIC DEPOSIT)
This SECURITY AGREEMENT (the “Agreement”) dated as of ____________ , 200_, is
made between [Name of Bank] (the "Bank"), a ________________________ , having an
address at _________________________________________ , and the STATE OF
CONNECTICUT, acting through the Treasurer of the State of Connecticut pursuant to Sections
3-11a and 36a-333(b) of the Connecticut General Statutes, having an address at 55 Elm Street,
Hartford, Connecticut (the "Public Depositor").
WITNESSETH:
WHEREAS, the Bank is a qualified public depository as defined in the Protection of
Public Deposits Act, Conn. Gen. Stat. §§ 36a-330 et seq. (the "Act"); and
WHEREAS, Public Depositor from time to time makes deposits, as said term is defined
in Conn. Gen. Stat. § 36a-330(4), in the Bank (its "Public Deposits"), which Public Deposits shall
from time to time aggregate in excess of One Hundred Thousand and No/100 Dollars
($100,000.00); and
WHEREAS, the Public Depositor desires to have its Public Deposits secured by
collateral in the amounts required by the Act; and
WHEREAS, the Bank has agreed to secure the Public Depositor's Public Deposits by
granting to the Commissioner of the Connecticut Department of Banking (the "Commissioner")
and the Public Depositor a security interest in certain collateral ("Eligible Collateral") owned by
the Bank, which collateral meets the requirements described in Conn. Gen. Stat. § 36a-330(1) ,
as permitted by 12 U.S.C. § 90 and the Act;
NOW THEREFORE, in consideration of the Public Depositor depositing its Public
Deposits as herein described, and for other good and valuable consideration, hereby
acknowledged as received, it is hereby agreed between the Public Depositor and the Bank as
follows:
1.
Pursuant to Part III of Chapter 665a of the Connecticut General Statutes and in
order to secure the Public Depositor's Public Deposits, the Bank hereby pledges, assigns,
transfers and grants to the Commissioner and the Public Depositor a perfected first priority
security interest in such amounts of the Eligible Collateral described in the Custodial Trust
Agreement (the "Trust Agreement"), which Trust Agreement is attached hereto as Exhibit A and
which the Bank hereby certifies has been executed by the parties thereto, as is necessary for
the Eligible Collateral pledged hereunder to have a minimum market value in relation to the
Public Depositor's Public Deposits, plus accrued interest, to meet the collateral ratios and other
requirements described in Conn. Gen. Stat. § 36a-333(a). If at any time the ratio of the market
value of the Eligible Collateral to the Public Depositor's Public Deposits, plus accrued interest, is
less than required by Conn. Gen. Stat. § 36a-333(a), the Bank shall immediately make such
additions to the Eligible Collateral in such amounts such that the ratio of the market value of the
Eligible Collateral to the Public Depositor's Public Deposits, plus accrued interest, shall be at
least equal to that required by Conn. Gen. Stat. § 36a-333(a). Such additions to the Eligible
Collateral shall constitute an assignment, transfer, pledge and grant to the Commissioner and
the Public Depositor of a security interest in such additional Eligible Collateral pursuant to the
Act. The execution by the Bank of the Trust Agreement shall in no way relieve it of any of its
duties or obligations hereunder or under the Act.
2.
The security interest granted herein (as described in Section 1 above) shall
secure not only such Public Deposits and accrued interest of the Public Depositor as are held
by the Bank at the time of this Agreement, but also any and all subsequent Public Deposits
made by the Public Depositor in the Bank regardless of the accounts in which such funds may
be held or identified by the Bank.
3.
The pledge of Eligible Collateral by the Bank shall be in addition to, and shall in
no way eliminate or diminish any insurance coverage to which the Public Depositor may be
entitled under the rules and regulations of the Federal Deposit Insurance Corporation or any
private insurance carried by the Bank for the purpose of protecting the claims and rights of its
depositors.
4.
The Public Depositor is under no obligation to maintain its deposits with the Bank
and may withdraw them at any time without notice. It is agreed that when the Bank shall have
paid out and accounted for all or any portion of the Public Depositor's Public Deposits, any
Eligible Collateral pledged under this Agreement to secure such paid out Public Deposits shall
be released from the security interest created hereunder, and the Bank and the Public
Depositor shall take whatever actions may be necessary to cause a transfer of such securities
to the Bank free and clear of any liens created hereunder. The Public Depositor agrees to sign
any reasonably required releases as expeditiously as possible, but in any event within five (5)
business days of receiving such releases.
5.
The Bank hereby represents that (i) it is a [national banking association/state
chartered savings bank] duly organized and validly existing under the laws of the [United
States of America/State of Connecticut]; (ii) it is a qualified public depository as defined by
Conn. Gen. Stat. § 36a-330(5); (iii) it has, or will have as of the time of delivery of any securities
as Eligible Collateral under this Agreement, the right, power and authority to grant a security
interest therein with priority over any other rights or interests therein; (iv) the execution and
delivery of this Security Agreement and the pledge of securities as Eligible Collateral hereunder
have been approved by resolution of the Bank's Board of Directors and the approval of the
Board of Directors is reflected in the minutes of a meeting, copies of which resolution and
relevant portion of the minutes of said meeting are attached hereto as Exhibit B and made a
part hereof; (v) the execution and delivery of this Agreement and the pledge of securities as
Eligible Collateral hereunder will not violate or be in conflict with the Articles of Association or
By-laws of the Bank, any agreement or instrument to which the Bank may be a party, any rule,
regulation or order of any banking regulator applicable to the Bank, or any internal policy of the
Bank adopted by its Board of Directors; and (vi) this Security Agreement shall be continuously
maintained, from the time of its execution, as an official record of the Bank.
6.
Any additional pledge of Eligible Collateral hereunder, substitution of Eligible
Collateral or release of Eligible Collateral shall be approved by an officer of the Bank duly
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authorized by resolution of the Board of Directors to approve such additional pledges,
substitutions or releases of Eligible Collateral, under this Agreement.
7.
All parties to this Agreement agree to execute any additional documents that may
be reasonably required to effectuate the terms, conditions and intent of this Agreement.
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.
This Agreement shall be governed by and construed in accordance with the laws
of the State of Connecticut and the laws of the United States and it supersedes any and all prior
agreements, arrangements or understandings with respect to the subject matter hereof. In the
event that any conflict of law issue(s) should arise in the interpretation of this Agreement, the
parties agree that when Connecticut law is not pre-emptied by laws of the United States,
Connecticut law shall govern.
11.
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.
12.
In the event that any provision or clause of this Security Agreement conflicts with
applicable law, such conflict shall not affect other provisions of this Security Agreement, which
shall be given effect without the conflicting provision. To this end the provisions of this Security
Agreement are declared to be severable.
13.
Unless applicable law requires a different method, any notice that must be given
under this Agreement shall be given in writing and sent by certified mail, return receipt
requested or third party overnight priority mail carrier to the address set forth herein or such
other place as may be designated by written notice in the same manner from one party to the
other.
IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto
as of the date first above written.
[NAME OF BANK]
By:___________________________
Name:
Title:
Dated:_________________________
STATE OF CONNECTICUT
By:___________________________
Name: Denise L. Nappier
Title: Treasurer
Dated:________________________
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EXHIBIT A
CUSTODIAL TRUST AGREEMENT
This Custodial Trust Agreement ("Agreement"), dated as of ______________, 2001, is
made between [name of financial institution acting as Custodian (whether or not the
institution is the same as the institution acting as public depository)], a [type of bank -
national or state, bank and trust, savings or savings and loan], as custodian (the
"Custodian"), for the Commissioner of Banking of the State of Connecticut, and [name of
financial institution acting as public depository], a [type of bank - national or state, bank
and trust, savings or savings and loan] (the "Public Depository").
WITNESSETH:
WHEREAS, the Public Depository receives or holds "public deposits", as said term is
defined by Connecticut General Statutes Section 36a-330(4) ("Public Deposits"); and
WHEREAS, the Public Depository is required by Connecticut General Statutes Section
36a-333 to grant a security interest in its public deposits to the Commissioner of Banking of the
State of Connecticut (the "Commissioner") for the benefit of public depositors by the segregation
of "eligible collateral,” as said term is defined by Connecticut General Statutes Section 36a-
330(1) ("Eligible Collateral"); and
WHEREAS, the Public Depository desires to appoint the Custodian and the Custodian
desires to act as custodian for the public depository in the conduct of its duties under Chapter
665a of the Connecticut General Statutes, all upon the terms and conditions and subject to the
limitations hereinafter set forth;
NOW THEREFORE, in consideration of the premises and of the mutual covenants
herein contained, the Custodian and the Public Depository hereby agree as follows:
1.
Transfer of Collateral.
a.
Initial Transfer. The Public Depository hereby transfers to the Custodian, on
behalf of the Commissioner, subject to the security interest granted to public depositors under
Chapter 665a of the Connecticut General Statutes, the collateral described in Schedule 1
attached hereto (the "Collateral"). The Public Depository certifies that the Collateral is Eligible
Collateral, subject to the requirements of Chapter 665a of the Connecticut General Statutes and
regulations adopted pursuant thereto (together, the "Public Deposits Act").
b.
Additions and Substitutions of Collateral. The Public Depository may, from time
to time, transfer to and deposit with the Custodian additional Eligible Collateral or moneys for
the purchase of additional Eligible Collateral, to be held by the Custodian pursuant to the terms
of this Agreement; provided, however, that if in its sole discretion the Custodian deems the
same necessary or convenient, the Public Depository and the Custodian shall first have entered
into an amendment to this Agreement describing additional or different terms subject to which
the Custodian will receive, hold and dispose of such additional Eligible Collateral. Except as
otherwise provided in an amendment to this Agreement, upon transfer or purchase thereof by
the Custodian, such additional Eligible Collateral shall be subject in all respects to the terms of
this Agreement, and the word "Collateral" as used in this Agreement shall include such
additional Eligible Collateral. If Collateral is purchased by the Custodian with moneys provided
by the Public Depository, including moneys designated for such purpose pursuant to Section 2
hereof, such purchase of Collateral shall be at the written direction of the Public Depository,
specifically identifying the Collateral to be purchased.
c.
Public Depository's Transfer Certificate. Each transfer of Collateral or money for
the purchase of Collateral, including the initial transfer of Collateral under this Agreement, shall
be accompanied by a certificate of the Public Depository stating, as applicable, the par value or
original face amount, current par value, interest rate, CUSIP number, maturity date, market
value and security rating of the Collateral transferred or to be purchased. The certificate shall
also contain a description of the Collateral and shall state that the Collateral is being transferred
to [name of financial institution acting as custodian], as Custodian, pursuant to this
Agreement.
2.
Sale or Disposition of the Collateral; Recoveries of Moneys With Respect to the
Collateral.
The Custodian shall not sell or otherwise dispose of the Collateral prior to its maturity.
Notwithstanding the foregoing, the Custodian shall, if and as directed in writing by the Public
Depository, transfer to the Public Depository, sell or otherwise dispose of any or all of the
Collateral. The Custodian shall pay to the Public Depository the proceeds, if any, of any such
sale or other disposition of the Collateral. The Custodian shall promptly pay to the Public
Depository all other moneys, other than interest (which is to be paid to the Public Depository
pursuant to the terms of Section 3 hereof), received by the Custodian with respect to the
Collateral. Notwithstanding the foregoing, the Public Depository may provide to the Custodian
written instructions to apply all or any part of such proceeds or moneys to the purchase of
additional Collateral, provided that such purchase of additional Collateral shall be subject to the
terms of Section 1 hereof.
3.
Interest Fund.
An Interest Fund (the "Interest Fund") is hereby established with the Custodian, into
which Interest Fund the Custodian shall deposit any interest or other amounts (excluding
amounts subject to the terms of Section 2 hereof) received by the Custodian on the Collateral.
(It is understood that the Custodian shall not receive any interest on any mortgage loans held as
Collateral hereunder.) By the fifteenth day of April, July, October, and January of each year
during the term of this Agreement, the Custodian shall pay to the Public Depository any
amounts then held in the Interest Fund, subject, however, to the Custodian's lien or right of set
off pursuant to Section 5(d) hereof.
4.
Custodian's Certificate; Notice of Noncompliance.
Prior to or upon execution of this Agreement, the Custodian will deliver to the Public
Depository a certificate in substantially the form attached hereto as Schedule 2, stating that the
Custodian: (a) is authorized under law to exercise fiduciary powers in the State of Connecticut;
(b) has its main office and principal place of business in Connecticut; complies with all
applicable capital guidelines and requirements as described in the Public Deposits Act; has
assets which exceed its liabilities; and that the Custodian's execution and performance of this
Agreement is legal, valid, binding, and enforceable in accordance with the terms of this
Agreement; and (c) is either federally insured or has the approval of the Commissioner to act as
custodian hereunder despite not being federally insured. The Custodian agrees to notify the
Commissioner and the Public Depository immediately in writing if at any time (a), (b), or (c)
ceases to be true of the Custodian.
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