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RE 2010-0928.3A RESOLUTION OF THE CITY OF COPPELL, 'TEXAS RESOLUTION NO. ZD /D 69-'W 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, APPROVING THE BANK DEPOSITORY AGREEMENT AND DESIGNATING FROST NATIONAL BANK AS THE CITY DEPOSITORY; AUTHORIZING THE CITY MANAGER TO EXECUTE SUCH AGREEMENT; AND PROVIDING AN EFFEC'T'IVE DATE. WHEREAS, the City has given notice and requested proposals from all the banks doing business within the City for provision of the City's depository and banking services, and WHEREAS, applications were received, opened and publicly accepted on August 12, 2010; and WHEREAS, after review and consideration of the proposals received, it is the determination of the City Council that Frost National Bank be designated as the City Depository. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: SECTION 1. That Frost National Bank be designated as the bank depository of the City of Coppell for depository and banking services; and, that the City Manager is hereby authorized to execute the agreement which is attached hereto and any other documents necessary to enter into the Depository Agreement designating Frost National Bank as the City's Depository Bank. This agreement is for a five (5) year period beginning December 1, 2010 and ending November 30, 2015. SECTION 2. That the bank shall qualify as a Depository by providing security for the City's funds to be deposited with the bank within five (5) days after the date of the execution and return of the resolution to the bank in accordance with State Law. SECTION 3. This Resolution shall take effect immediately from and after its passage, as the law and charter in such cases provide. DULY PAS ED AND ADOPTED by the City Council of the City of Coppell, Texas, on the day of 2010. CITY OF COPPELL, TEXAS Bob Mahalik, Mayor Pro Tern ATTEST: e LZ Libby Ball, APPROVED AS TO FORM: 40 Att City 2 FM 45396.2.921 10 DEPOSITORY AGREEMENT STATE OF TEXAS § COUNTY OF DALLAS § KNOW ALI, MEN BY THESE PRESENT: This agreement is made and entered into by and between the City of Coppell, Texas (hereinafter referred to as "City "), and Frost National Bank (hereinafter referred to as "Bank "), and to which witness the following: WHEREAS, the City received bids from banks desiring to be designated as the city Depository; and WHEREAS, on the 28th day of September, 2010, the Bank was designated as the City Depository for the City; now, therefore, in consideration of the mutual benefits, consideration, covenants and conditions contained herein, the parties agree as follows: 1. TERMS The Bank has been duly selected by the City as the Depository of certain funds of the City from the 1st day of December, 2010, through the 30th day of November 2015, or thereafter until the successor depository shall have been duly selected and qualified according to state law. This contract shall be automatically extended up to ninety (90) days if the City is actually proceeding with request for proposal procedures but, for whatever reason, cannot finalize the request of proposal or selection process by the end of the contract period. 2. TERMINATION The Bank or City may cancel this agreement at any time upon ninety (90) days prior written notice of its intent to terminate. 3. I;ANKING SERVICES TO BE PROVIDED A. Customary demand deposit account services for as many accounts as may be required by the City. All account analysis charges will be waived for the first 90 days (three months) for the depository contract. 13. Provide complete investment services including assistance in acquiring investment securities, counseling, reporting and safekeeping services for securities owned. C. Provide bank money orders, traveler's checks and cashier checks as required by the City at no charge as described in Bank's proposal's fee schedule Exhibit A, which is attached hereto and incorporated herein. D. Provide a night depository, locking depository bags and plastic tamper resistant bags at no charge. E. All checks deposited by the City that do not clear the first time shall be submitted a second time before returning them to the City. Returned checks that don't clear on the second attempt shall be returned to the City within two business days. The City shall receive same day telephone notification of all returned items in excess of $5,000. F. Provide wire transfer service. It is understood that the City of Coppell uses the wire transfer service as a means of accelerating various types of payments within one (1) hour of secondary approval. G. Provide monthly bank statements in both electronic and written, printed format on each account within five (5) working days of closing date to the City of Coppell, Attn. Finance Dept, P.O. Box 9478, Coppell, TX 75019. Statements are to reflect transactions beginning with the first day of the month and ending with the last day of the month and include all accompanying checks and deposit tickets in numerical order. The City requires the copies of cleared checks (front and back) be provided on CD -ROM. H. Provide collected and ledger balances as often as daily. I. Provide ledger credit on the same day as deposits occur (holidays and weekends excepted). This includes same day credit on wire transfers on funds from Federal and State Governments, and same day credit on warrants issued by the State Comptroller. J. Provide remittance service to various paying agents for required principal and /or interest payments on bonds. K. Monitor City investment securities held by depository bank to provide same day credit to the appropriate City account(s) automatically upon maturities, and provide deposit slips at maturity dates. L. Honor Federal Reserve depository transfer checks drawn on the City's account which are authorized by the City. M. Provide coin wrappers and accept bulk coins for deposit. N. Provide fire proof safekeeping and storage of City back -up data. -2- O. Provide courtesy of cashing City employee's payroll checks at no charge. P. Provide free checking accounts for City employees through the Frost @ Work program which is attached hereto and incorporated herein as Exhibit B. Q. Provide direct deposit payroll for City employees. R. Other Banking services available to full -time employees. (see Frost @ Work) S. Supply deposit slips and endorsement stamps according to quality, quantity, design and specifications established by the City at no charge. T. Lock Box services when required. U. ACH services when required with Blocking /Filtering Capabilities. V. Daylight Overdrafts when required. W. Controlled llisbursement Accounts. X. Zero Balance Accounts Y. Positive Pay services including payee comparison at no charge. Z. Internet based Reporting and On -Line Banking System. AA. In the case of a conflict between the Depository Agreement and the attached Schedule of Fees, the Depository Agreement shall prevail. BB. Maintain our current (2005 Agreement) overnight automated sweep to repurchase agreement. CC. Payroll Debit Card Option 4. DEMAND ACCOUNTS Demand Deposit Account: This account will receive all deposits, ACH transactions, wires, investment activities and controlled disbursements. The Bank will initiate all transfers to the zero balance accounts daily. The rate of interest per annum the Depository shall pay the City is the previous month's 91 day U.S. Treasury Bill auction discount rate less 35 basis points. -3- 5. CONTROLLED DISBURSEMENT ACCOUNTS General Account: This account will receive deposits transferred from the Operating Account for payment of the City's expenses. 6. ZERO BALANCE ACCOUNTS Payroll Account: This account will receive deposits transferred from the operating account for payment of the City's payroll. Self Funded Health Plan: This account will receive deposits transferred from the operating account for payment of insurance claims. 7. INTEREST RATE ON LOANS TO THE CITY Loans will be made to the City based on credit at a rate negotiated per annum to pay current operating expenditures as may be appropriated by ordinance with such loans to be repaid out of the first current tax collection. Loans will be made to the City based on credit at the rate negotiated per annum to pay non - operating expenditures and /or purchase equipment or other expenditures as may be appropriated by ordinance with such loans to be repaid on a scheduled basis as agreed to by the City and by the bank. 8. OVERDRAFTS IN DEMAND ACCOUNTS In the event a check is presented on any City account where there exists insufficient funds available for payment, the City will require the Depository to pay said checks and promptly notify the Finance Department regarding the overdraft position. Due to Bank system restraints, overdrafts will be charged on a per account basis on the monthly analysis at the Frost's prime rate per annum interest thereon. It is the City's intent to ensure none of our accounts are in an overdraft position at any time. There is no charge for daylight overdrafts. -4- 9. COLLATERAL SECURITIES FOR DEPOSITS The Bank shall furnish to the City collateral in an amount and conditioned as provided by the laws of Texas and pursuant to the Bank's "Security Agreement". The City will accept as collateral for its certificates of deposits and other evidences of deposit the following securities: (All securities should be rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than "A" or its equivalent). (The pledged securities must conform with the Public Funds Investment Act as amended, which includes but is not limited to the following). A. Obligations of the United States of American, its agencies and instrumentalities. B. Direct obligations of the State of Texas or its agencies and instrumentalities. C. Other obligations, the principal of and interest on which are unconditionally guaranteed by the State of Texas or United States of America. D. Obligations of the State, agencies thereof, Counties, Cities, and other political subdivisions of any state having been rated as investment quality by a nationally recognized investment rating firm, and having received a rate of not less than "A" or its equivalent. Certificates of Deposit and other evidences of deposit shall be collateralized at market or par, whichever is lower, for U.S. Treasury Bills, Notes and Bonds with a remaining maturity of three years or less and at 105% of market or par, whichever is lower, for other securities. All funds on deposit with the Bank to the credit of the City shall be secured by the Bank in accordance with and as provided for the in the Texas Public Funds Collateral Act (Chapter 2257 of the Texas Government Code, as amended). Collateral may be audited at least annually by the city's independent accountants and may be audited by the City at any time during normal business hours of the safekeeping bank. The audit of the collateral by the City's independent accountants of the City is to ascertain that Governmental Accounting Standards Board Statement #3 is adhered to and the financial institution is complying accordingly. The financial institution with which the City invests and /or maintains other deposits shall provide monthly, and as requested by the City, a listing of the City's certificates of deposit and other deposits at the institution and listing of the collateral pledged to the City marked to current market prices. The listing shall include total pledged securities itemized by: Name Type /description -5- Par Value Current Market Value Maturity Date The City and the financial institution shall assume responsibility for ensuring that collateral is sufficient. When the need for collateral with the Bank is expected to increase on any given day or over a series of days, the City hereby agrees to notify the Bank of such expected increase at least one business day prior to the expected date the additional deposits are expected to be received. The Depository may substitute approved securities in the pledge account so long as the total value of securities pledged meets the required levels. Substitutions may be made after obtaining written authorization from the Director of Finance of the City of Coppell or his /her appointed designee. The Depository may also request permission to release securities whenever the total amount pledged is in excess of the City's requirements. There will be no charge for pledging, releasing, substituting and safekeeping of securities used to collateralize the City's accounts. The City will require the Bank to attach to the contract the certified resolutions of the board of directors that set forth the City's security interest in the collateral supporting City deposits as required in the Collateral Provision of FIRREA. The certification must meet all of the requirements of FIRREA and FDIC policies that apply to the City's security interest in the pledged collateral and must specify the officers of the Bank who are authorized to sign agreements with the City. 10. SAFEKEEPING Securities pledged as collateral for certificates of deposit or other evidences of deposit and for repurchase agreements shall be retained in safekeeping in a third party safekeeping bank in the State of Texas or in the Federal Reserve Bank of Dallas at no charge to the City. The investments purchased by the City, may be retained in a third party safekeeping bank or in the depository bank's trust department in the city's name. The City, the financial institution, and the safekeeping bank(s) shall operate in accordance with a master safekeeping agreement signed by all parties, except in the case of the Federal Reserve Bank which will not sign a third party agreement. The City shall always hold the original safekeeping receipt for its investments and for pledged collateral. The City's designated official (s) must approve release of collateral in writing prior to its removal from the safekeeping account. The master safekeeping agreement shall clearly state the Federal Reserve Bank or the safekeeping bank is instructed to release the collateral to the City if the City has determined the Bank has failed to pay on any accounts, has been closed by a regulatory authority, or is in default of this agreement, and if the instructions for release have been formally requested by the City's governing body. 11. INVESTMENTS The City of Coppell intends to manage its own investment portfolio. Therefore, the City reserves the right to withdraw, from time to time, any amount of funds of the City on deposit in any City account to invest those funds in accordance with the City's investment policy. A. Investments - General All investment decisions shall be approved by the City before execution. The City may order investments either by phone or by written notification. All investments purchased by the City shall be purchased "delivery versus payment ". That is, the City shall authorize the release of its funds only after it has received notification from the safekeeping bank that a purchased security has been received in the City's safekeeping account. This notification may be oral, but will be followed up in writing with the original safekeeping receipt. The City must have confirmation from its safekeeping bank that collateral pledged from a financial institution is in the City's account before investing in Certificates of Deposit or other evidences of deposit at the financial institution. The confirmation may be oral, but must be followed up in writing with the original safekeeping receipt. There will be no safekeeping fees when the Bank serves as the City's broker /dealer on an individual investment. B. Investments - Repurchase Agreements The Bank agrees to sell those U.S. Securities in which the City can legally invest its excess demand deposit balances to the City, on or before 3:00 p.m. each regular business day to provide overnight and weekend investments to the City through the use of an automatic sweep to a "repurchase agreement," and simultaneously, with the sale, agrees to repurchase on or before 11:00 a.m. on the next following day of business, the same securities at the same price as sold, with interest calculated on the invested amount. Bank holidays falling on Friday or Monday will be included in the weekend "Repurchase Agreement" and the interest calculation for a weekend "Repurchase Agreement ", including bank holiday, will be calculated on the invested amount. Interest earnings resulting from each repurchase agreement shall be paid to the city on the day of repurchase by providing deposit slips showing each account and the amount of interest deposited to the account. -7- The Bank agrees to pay the City interest on each repurchase agreement at the rate of 95% of the Fed Fund rate sold at Frost Bank on the date which the repurchase agreement is executed. The City reserves the right to enter into repurchase agreements for periods of time longer than overnight and weekends as may be agreed upon by the financial institution and the City. 12. TIME DEPOSIT MATURITIES OCCURRING SUBSEQUENT TO DEPOSITORY AND BANK SERVICES AGREEMENT TERMINATION DATE All time deposits, certificates of deposit or other investment securities which have not matured on the termination date of the finally approved depository contract shall remain on deposit with the same depository under the same terms and conditions in effect during said contract until the date such time deposits have matured. 13. DEPOSIT OF FUNDS The City pledges to the depository that all funds over which the City has control will be deposited in the depository bank. The Bank agrees that the City reserves the right to invest the City's funds in lawful securities other than depository issued certificates of deposit with full cooperation of the depository bank. If requested by the City, depository bank agrees to assist the City in investing funds which are not invested in depository bank issued certificates of deposit. 14. MISCELLANEOUS A. The Bank shall use its best efforts to notify the City in writing within ten (10) days of any changes in federal or state regulations or laws that would thereafter materially affect the depository agreement. The Bank shall also notify the City of any services that become available to the City throughout the contract. B. This contract is governed by the laws of the State of Texas. Venue for any action to construe or enforce this Agreement shall be in Dallas County, Texas. C. There shall be a review of the services of the Bank at least annually to evaluate the working relationship between the City and the Bank. The objective of the review shall be to address any problems or issues, and to discuss the procedures involved in reaching a mutual resolution. D. The Bank will ensure this Agreement has been approved by the Board of Directors and such approval is evidenced by a resolution of the Bank's Board of Director's adopted at the meeting at which this Agreement was approved. This action is further reflected in the minutes of such meeting and such approval is binding on the Bank. E. The City pledges to the depository that all funds over which the City has control will be deposited in the depository bank. However, the City reserves the right to have a secondary depository bank to serve as a backup in the case of a natural disaster or bank failure. F. Any notice required to be given by any term of this Agreement or otherwise may be given as follows: City of Coppell Attention: Jennifer Miller, Director of Finance P.O. Box 9478 Coppell, Texas 75019 Frost National Bank Attention: Tom Frost, III, Senior Executive Vice - President P O Box 1600 San Antonio, TX 78296 EXECUTED in duplicate originals thisan'Aday of zr} -guAq FROST NATIONAL BANK By. . ATTEST: By: a.c e�,•J Secr ary CITY OF COPPELL, TEXAS By: Z�z Clay P lips, Cit anager ATTEST: By: J. 4Liball, Secretary ADMIN\DEPOSTRY.AGM - 10 - APPROVED AS TO FORM: pp " Frost o BANKING INVESTMENTS INSURANCE City of Coppell COMMERCIAL BANKING AND TREASURY MANAGEMENT SERVICES Schedule of Fees as of August 12, 2010 COMMERCIAL t$ANKINU rUaLI%,rUnua - Balance Inquiries/Transfers 24 -hour tele hone account information line inquiries No char e 24 -hour telephone account information line transfers $0.50 each 24 -hour telephone account information line stop payment $20.00 each Customer service representative assisted inquiries 2 free then $2.00 each thereafter Customer service representative assisted transfers $2.00 each Blocked and Control Accounts Setu I 4.00 Frost standard agreement - 500.00 account _ Nonstandard agreement, simple $1 Nonstandard a reement com 1ex 3 000.00 /account Monthly maintenance 100.00 account Check Clearing and Processing Services Commercial account maintenance I 4.00 Cancelled checks $2.00/account/month Credits posted does not include ACH or remote deposit capture cr edits $0.20 /credit Debits posted does not include ACH debits) 0.03 debit Items deposited unencoded 0.095 item Hold mail service fee $10.00/account/month Pre - encoded reject items 0.01 item + one-day float Return items 1.00 item Telephone or fax notification 5.00 call or fax Reclear 1.00 item S pecial signature requirements 3.00 month + W .03 /item Collection Services Collection items drafts checks _ 20.00 /item _ Custodial fee after due date of foreign do cumentar i es 10.00 month /item Dealer drafts im mediate credit drafts 12.00 item Documentary 80.00 item Foreign check 40.00 item Commercial Vault Services Currency deposits $.30/$1,000.00/ de sit Deposit correction 2.00 item Telephone discrepancy notification 5.00 call Cash payment for change order _ _ 5.00 /order Change order minimu _ 5.00 order Detailed re rtin 15.00 hour Full Fed standa bag of coin de posited _ Mall de osito pickup 2.50/ba $2.75 /bag New or ATM fit curren furnishe $1.50 /stra Partial bag of loose coin de sited $ Plastic deposit bag $0.65/bag + applicable processing fees Rolled coin furnished 0.07 roll deposit handling fee 0.25 minute 15.00 hour - Special currency furnished 0.45 /stra - Strapped Various coin /currency supplies available o request Prices va iof4 Exhibit A Teller Services Branch deposit processing 1 $1.00/ de sit Night deposit services $5.00 /key one -time + applicable processing fees Change order minimum ___ 5.00 order Rolled coin furnished 0. 10 /roll _ _ Strapped currency furnished _ _- 0.60 /stra Wire Transfer Services Phone Outgoing repetitive Fed Wire 10.00 wire Outgoing nonre etitive Fed Wire 15.00 wire Outgoing international wire 1 f ree /year, then $10.00 /hour Mexico or Canada $15.00 All other countries $35.00 Incoming Fed Wire 5.00 transfer Intrabank nonre etitive transfers 3.50 /transfer Intrabank repe titive transfers 3.50 transfer Investigations 20.00 hour 2 -hour minimum Mail daily wire advice statement 1.50 /statement Phone call notification 5.00 call Wire advice fax notification 5.00 fax Photocopies 3.00 a e A Account researc 20.00 hour char ed onl for customer initiated errors ACH blocking ___ 10.00 account/month Audit confirmation _ 1 f ree /year, then $10.00 /hour Cashier's ch Check/document photocopies from microfilm 10 free /year, then $5.00 each _ 10 free/ ear then $3.00 /item Credit investigation servi $25.00/investigation __._ 25.00 investi ation FDIC assessment Based on actual fee* Garnishment _ 100.00 (charge is not analyzed Le 100.00 (charge is not analyzed Money order 10 free ear then $3.DO each My Frost bill pay $0.50/bill pay My Frost check copies/statements $0.15 each My Frost account transfers 0.50 transfer My Frost stop paymen $20.00 each Nonsufficient funds charge Overdraft charge No per item charge Ledger overdrafts are charged at the Bank's prime rate Stop payment manual _ 30.00 each Statements Rendered $0.00 each no charge ... ti..- colt , ,", ;� not hoinn accaccad Frost's FDIC = All analyze0 a000uni5 are aidryeu a nwuuuy - w. I .,... - assessment is calculated on a quarterly basis according to the ledger balance in the account at the end of the quarter. The charge is divided into three equal monthly payments and billed during the following quarter. Accounts opened during the quarter are assessed based on the monthly average ledger balance. Averacie neciative collected balance Prior month's average Frost Bank Prime 7-� Earnings credit rate Based on average 91 -day T -bill auction rate + 25 basis Eoualization factor I No charge I 2 of 4 Exhibit A TREASURY MANAGEMENT SERVICES Account Reconciliation Full reconciliation I $25.00 setup 75. /account + 0.05 item Partial reconciliation $25.00 setu Paid item output - transmission $50.00/account/month + 0.05 /item Statement All Items Report 50.00 account/month + 0.05 item Site reconciliation $25.00 setup 50.00 account + 0.05 item Serial sort Positive pay with full reconciliation 50.00 accoun month + 0.05 item No charge to maintain file (see Positive Pay section for De r-item fees ACH origination _ 0. 00 /month (no charg plus $0.04 per item _ _ _ _ ACH Operating Rule Corporate Editio $16 .00, plus ta ACH credit received 0.06 item _ ACH debit received _ 0.06 item _ ACH returned items $1.00 each Batch input - ACH file maintenance $12.00 each Batch input - changing effective dates 112.00 each Batch input - entry reversal after settlement date $10.00 each Electronic payment authorization - monthly service fee 10.00 month /account Electronic payment authorization - authorized originator $3.00/month/originator Financial Electronic Data Interchange FEDI Addendum 0.05 item Financial Electronic Data Interchange FEDI a er advice mailed ..__I;__ Feo 1.25/ e I !ti0.00 /month Line of credit $140.00 month Line of credit and investment 165.00 month Sweep Report 0.00 no charge * Securities products are NOT FDIC insured ` NOT guaranteed b Frost • NOT products of Frost and may involve risk to principal amount invested. CD -ROM captured imaged items through regular processing, checks $25.00 /CD, plus $0.02 /item not returned CD- ROM captured imaged items directly from checks held by $75.00 /CD, plus $0.05 /item customer - Software for CD -ROM image archive $200.00, plus tax Controlled Disbursements Controlled disbursements 50.00 accoun month Credits posted does not include ACH or remote deposit capture credits 0.25 credit Debits posted 0.08 /debit Telephone notification 15.00/ call Internet Banking Cash Manager Previous da balance /activity summary 50.00 month Accou reported $5. 00 accou ntj month Data export Included with detail Previous day detail reported 0.02 /item _ Current day reportin cash position draw report) Current day detail reporting included with current day reporting) $20.00 0.00 no charge Account book tran 0.50 transfer ACH activity report No charge BAI2 file deliv outside of Cash Manager) $15.00/account/month BAI2 file delivered outside of Cash Man ager) 0.05 /item Checking account statement No charge Data exchange (incoming) 75.00 accoun month plus 0.05 item _ Data exchange (outgoing) Data export without previous day reporting) 75.00 accoun month plus 0.05 item 100.00 plus 15.00 accoun month plus 0.03 /item Electronic Account Analysis 822 Report) $0.00 no charge 3 of 4 Exhibit A Positive Pay Without full reconciliation 0.015 it no minimum accoun month With full reconciliation No charge Adjustments to file after recei t 1.00 /item month Exception reject items $0.10/exception item no minimum accoun Paid reject item 1.00 item Reject report fax 5.00 fax Payee Review $25,00/account/month + $0.05 ACH reverse p2sitive pay or check blockin $0.10/exception item $10 minimum account/month Exception reject item Paid reject item 1.00 item — Reject rep2rt fax 5.00 fax .07 I Monthlv maintenance tee 4 of 4 Exhibit A Frost procuremen — scanner model CX30 $75 .00 /workstation Frost procurement — scanner model TS230 100.00 /workstation Frost procurement — scanner mo TS4120 200.00 workstation Remote capture credit post _. 0.25 item Remote capture item deposited 0.065 item """ Frost � ► COMMERCIAL BANKING AND 0 Z TREASURY MANAGEMENT SERVICES BANKING INVESTMENTS INSURANCE Schedule of Fees as of August 15, 2010 City of Coppell COMMERCIAL BANKING - PUBLIC FUNDS Encoded Unencoded On Us $0.030 0.030 Local Regional Check Processing Center RCPC $O.G40 $0.040 Other 11th Fed City 0.050 $0.050 Transit Cleadn s $0.050 $0.050 11th Fed Country 0.050 $0.050 Other 11th Fed RCPC $0.050 $0.050 Local City 0.030 $0.030 Local Statewide Clearing 0.030 $0.030 Pre - encoded rejects $0.010 N/A Exhibit A 0 0_ Fro st RETAIL LOCKBOX Schedule of Fees as of August 12, 2010 BANKING INVESTMENTS INSURANCE City of Coppell F3 Lockbox One -time setup 50.00 /box Retail monthly maintenance includes one address ) $100.00/box/month Retail item $0.22 item checks and/or invoices 0.28 item - Multiples Retail box rental Actual cost - hard charge Retail cash processing $1.00/item Retail check only 0.35 item Retail coupon reject $0.1plitern Retail reassociation 0.06 item Retail return envelope 0.05 item Retail un rocessible check/ correspondence 0.25 /item Credit card processing $0.35/item CD-ROM CD -ROM — Monthly _ 25.00 bo month i CD-ROM — Week 8. 00 /CD /week _ CD-ROM — Dail 5. 00 /CD /day Retail CD image — check 0.0075 item 1-100,000 0.0075 item 100 001 and above 0.005 item Retail CD image — coupon* 0.0075 /item 1-1 00 000 0.0075 item 100 001 and above 0.005 item Reporting Internet Online exceptions 0.25 /item Retail image delivery — Internet 200.00 box month Retail Image capture — check* 0.10 line 1-100,000 0.0075 item 100 and above $0.005/i m Retail image capture — invoice* $5.00/call/da 1-100,000 0.0075 /item 100,001 and above 0.005 item * Customers who receive images of lockbox items on a CD -ROM and through the Internet will only be assessed a per item cnarge once. Lockbox Reporting Data transmission 100.00 bo month Data entry stroke $0.0V keystroke MICR capture 0.10 line Fax report $5.00 /da Fax photocopy $2.00/sheet Local telephone call $5.00/call/da I ­n rlietAnro tolPnhnno rall $7.50 /call /day (0708) MEMBER FDIC 1of1 Exhibit A F Frost BANKING INVESTMENTS INSURANCE City of Coppell WHOLESALE LOCKBOX Schedule of Fees as of August 12, 2010 Lockbox One -time setup 50 .00 /box Wholesal monthly maintenance (includes one address 10 0.00 /box/month Wholesale item _ _ _ 0. 37 /item Wholesale additional image $0. 10 /item Wholesale box rental Actual cost - hard charge Wholesale cash processing $1.00./item Wholesale detail sorting 0.06 /item Wholesale document notation 0.06 item Wholesale hand open mail 0.06 item Wholesale medical item $0.421item Wholesale photocopy $1.00/item Wholesale reassociation 0.06 item Wholesale return envelope 0.06 item Wholesalespecial handling 0.06 item Wholesale special stapling 0.06 item Wholesale un rocessible correspondence 0.25 item Credit card processing $0.35/item Re Internet Online exceptions 0.25 item Wholesale image delivery - Internet 200.00 bo month Wholesale image capture - check* _ 0. 10 /item Wholesale image capture - invoice* _ _ 0.10 /item Wh olesale extended online storage 25.00 month CD-ROM CD -ROM - Monthly $2.5.0 0 boy,/month CD -ROM - Weekly 8.00 CD week CD -ROM - Daily $5.00/CD/da Wholesale CD image - check* 0.10 item Wholesale CD image - invoice* 0.10 item * Customers who receive images of lockbox items on a CD -ROM and through the Internet will only be assessed a per item charge once. Lockbox Reporting Data transmission $100.00/box/month Data entry 0 .01 /keystroke MICR captu _ 0.10 line Fax report 5.00 da Fax photocopy $2.00 sheet Local telephone call $5.00/call/cla Long distance telephone call $7.50/call/da Additional Postage I Actual cost Courier/Express Mail Actual cost Branch delivery 60.00 box month Multiple mailing address Actual cost (08/10) MEMBER FDIC 1 of 1 Exhibit A 7 ,' Frost et, BANKING INVESTMENTS INSURANCE Safekeeping Fees Schedule of Fees as of August 2010 City of Coppell Account Maintenance $10.0o/month/account Safekeeping Online 50.00 month /2 services 65.00 /month /3 services Fixed Income Book Entry per receipt $0.60 Equity Book Entry per receipt $1.50 Physical per receipt $2.00 Book Entry per $10,000 at Par at Month -End 0.035 month Physical Entry per $10 of Par at Month -End 0.10 month Receipt Fees Security Receipt and Clearance Fees On -Frost Transactions Not On -Frost Transactions FRB Non -ABS MBS - $20.00 _ FRB ABS MBS - $25.00 Non -FRB Non -ABS MBS - $30.00 Non -FRB ABS MBS - $35.00 Physical Items - $75.00 Late Delivery Instructions - $25.00 Change Delivery Instructions Treasury Auctions $25.00 Transactional Fees Interest Payment - Credit to Account $1.00 Principal Payment - Credit to Account $8.00 Called Bond Redemptions - Credit to Account 10.00 _ Maturities - Credit to Account $10.00 Wire Fee $11.00 _ Cashier's Check $10.0 0 Ple dging Pledge $6.00 Release 6.00 _ Substitution O ther Registrations and Re-registrations 12.00 $35.00 Physical Examination of Securities 25.00 hour Reorganizations - Tenders and Exchanges $35.00 Treasury Auctions $50.00 Account Verification Statements free month) 2.50 Account Research 25.00 hour Indirect Inquiries for Lost or Stolen Securities: Semiannual Charge $25.00 Inquiry 3.00 Over- The - Counter Collections: Coupons $20.00/envelo _ Bonds _ $20.00/ or pus plus postage and insurance Proxies Annual Statements 3.00 _ Special Handling manual intervention 20.00 additional /transaction (06/08) MEMBER FDIC Exhibit A Frost at Work FROST BANK CAN MAKE YOUR BANKING EASIER. THAT'S WHAT COMES WITH A CENTURY OF EXPERIENCE. Frost at Work for City of Coppell Maybe it's having over a century of experience. Maybe it's because we're from Texas. But one thing is for sure - we know the importance of building relationships. We already have a relationship with the City of Coppell and now we'd like to show you what Frost has to offer you. EXECUTIVE PACKAGE • Dedicated Frost Banker - a financial concierge providing seamless service especially for you. As a client of Frost Bank, you have the benefit of one experienced banker to coordinate all of your financial needs with responsive, personal attention. • Free Interest Bearing Checking Account • Monthly service fee waived • Unlimited transactions • Interest Paid Monthly • Access to a High Yield Money Market account • Free bank stock checks • Free Visa Checkcard for purchases and ATM transactions • Free ATM transactions at Frost ATM's and participating HEB ATM's • No Frost service fee at non -Frost ATM's • No service charge on foreign ATM's • Free My Frost Online Banking • Free My Frost Bill Pay • Free Online Statement Delivery • Free wire transfers within the United States • Free stop payments • Free traveler's checks for one • Free official checks and money orders • No purchase fee on a Frost Gift Card • Free imaged checks • Savings Account with no monthly service charge • Child's Savings Account with no monthly service charge • Free Bank at Work gift • Free personal financial analysis regarding any one of the following: retirement, education funding, investments, protection of savings goals • $10.00 discount on rent of safe deposit box • 1/4% discount on personal loans with auto debit from a Frost Bank account (excluding Home Equity Line Of Credit) We've made switching to Frost easy. Shelly Long Frost @ Work Specialist 214 -515 -4851 shelly.long@frostbank.com Exhibit B ��1►j Frost Bank SECURITY AGREEMENT THE FROST NATIONAL BANK, N.A. (the "Bank "), for valuable consideration, the receipt and sufficiency of which is acknowledged, grants a security interest in and a pledge and assignment of (a) any and all Eligible Collateral (as defined below) from time to time held by The Federal Reserve Bank and/or Federal Home Loan Bank (the "Custodian "), identified on the Custodian's books as held for the account of the Depositor or jointly for the account of the Bank and the Depositor, together with (b) the products and proceeds of the foregoing and any substitutions or replacements thereof, whenever acquired and wherever located (the "Collateral ") to the City of Coppell (the "Depositor "), in order to secure the payment when due, of the Deposits (as defined below) pursuant to the depository agreement ( "Depository Agreement ") between the Bank and the Depositor, dated of even date with this security agreement (the "Agreement ") : 1. Definitions Except as otherwise expressly defined in this Agreement, all terms used herein which are defined in the Uniform Commercial Code as in effect from time to time in Texas (the "Code ") have the same meaning as in the Code. All other terms capitalized but not defined herein or in the Code have the meanings assigned to them in the Depository Agreement. "Account" shall mean the separate custodial account established with Custodian in the name of Bank and for the benefit and subject to the control of Depositor as secured party in accordance with this Agreement. "Authorized Person" shall be any officer of Depositor or Bank, as the case may be, duly authorized to give Written Instructions on behalf of Depositor or Bank, respectively, such authorized persons for Depositor to be designated in a certificate substantially in the form of Exhibit B, attached hereto, as such exhibit may be amended from time to time, or as designated in such other forms as may be prescribed by the Bank. "Book -Entry System" shall mean the Federal Reserve /Treasury Book Entry System for receiving and delivering U.S. Government Securities. "Business Day" shall mean any day on which Custodian and Bank are open for business and on which the Book Entry System is open for business. "Collateral Requirement" shall mean an amount of Securities with a Market Value equal to 102% of Uninsured Deposits; provided, however, to the extent that mortgage- backed securities (declining principal balance) are used as Eligible Collateral, "Collateral Requirement" shall mean an amount of Securities with a Market Value equal to 110% of Uninsured Deposits secured with such mortgage- backed securities. "Deposits" shall mean all deposits by Depositor in Bank, including all accrued interest on such deposits, that are available for all uses generally permitted by Bank to Depositor for actually and finally collected funds under the Bank's account agreement or policies. "Eligible Collateral" shall mean any Securities of the types enumerated in the Schedule of Eligible Collateral (which types are in compliance with the collateral policy adopted and approved by the FROST PUBLIC FUNDS ENTITY SECURITY AGREEMENT (FEBRUARY 2010) governing body of Depositor) attached hereto as Exhibit A, as such exhibit may be amended from time to time pursuant to a written amendment signed by each of the parties to this Agreement, and any Proceeds of such Securities. "Market Value" shall mean: (i) with respect to any Security held in the Account, the market value of such Security as made available to Bank or Custodian by a generally recognized source selected by the Bank or the Custodian, plus, if not reflected in the market value, any accrued interest on such Security, or, if such source does not make available a market value, the market value shall be as determined by Custodian or the Bank in its sole discretion based on information furnished to Custodian or Bank by one or more brokers or dealers; and (ii) with respect to any cash held in the Account, the face amount of such cash. "Proceeds" shall mean any principal or interest payments or other distributions made in connection with Eligible Collateral and anything acquired upon the sale, lease, license, exchange, or other disposition of Eligible Collateral. "Security" or "Securities" shall include, without limitation, any security or securities held in the Book -Entry System; common stock and other equity securities; bonds, debentures and other debt securities; notes, mortgages, or other obligations; and any instruments representing rights to receive, purchase, or subscribe for the same, or representing any other rights or interests in such security or securities. "Trust Receipt" shall mean evidence of receipt, identification, and recording, including a written or electronically transmitted advice or confirmation of transaction or statement of account. Each advice or confirmation of transaction shall identify the specific securities which are the subject of the transaction. If available, statements of account may be provided by the Bank or the Custodian at least once each month and when reasonably requested by the Depositor, and must identify all Eligible Collateral in the Account and its Market Value. "Uninsured Deposits" shall mean that portion of the daily ledger balance (amount of funds plus the amount of any accrued interest on the funds) of Depositor's Deposits with Bank which exceeds the standard maximum deposit insurance amount ( "SMDIA ") of the Federal Deposit Insurance Corporation ( "FDIC "). "Written Instructions" shall mean written communications actually received by Bank or Custodian from an Authorized Person or from a person reasonably believed by Bank or Custodian to be an Authorized Person by a computer, telex, telecopier, or any other system whereby the receiver of such communications is able to verify by codes or otherwise with a reasonable degree of certainty the identity of the sender of such communication. 2. Security Requirement (a) The Bank, to secure the timely payment of Uninsured Deposits made by Depositor, has deposited with Custodian certain Securities as more fully described in the initial confirmation or Trust Receipt of such deposit delivered by Custodian to Bank and Depositor respectively. Pursuant to the Code, the Custodian shall act as a bailee or agent of the Depositor and, to the extent not inconsistent with such duties, shall hold Securities as a securities intermediary (as such term is defined in Chapter 8 of the Code) in accordance with the provisions of this Agreement, the Depository Agreement, and of any agreement entered into with the Custodian further governing the provision of Security by the Bank for Uninsured Deposits. FROST PUBLIC FUNDS ENTITY SECURITY AGREEMENT FEBRUARY 2010) (b) (i) To secure the timely payment of Uninsured Deposits made by Depositor with Bank, Bank agrees to deliver or cause to be delivered to Custodian for transfer to the Account, Eligible Collateral having a Market Value equal or greater than the Collateral Requirement. (ii) If the Market Value of such Eligible Collateral on any Business Day is less than the Collateral Requirement for such day, the Bank shall be required to deliver additional Eligible Collateral having a Market Value equal to or greater than such deficiency as soon as possible but no later than the close of business of Custodian on the Business Day on which Bank determined such deficiency. If on any Business Day, the aggregate Market Value of the Eligible Collateral provided pursuant to this Agreement exceeds the Collateral Requirement for such day, Custodian shall, at the direction of Bank and with the approval of the Authorized Person acting on behalf of the Depositor, transfer from the Account to or for the benefit of Bank, Eligible Collateral having a Market Value no greater than such excess amount. (iii) When additional Eligible Collateral is required to cover incremental Deposits, the Bank must receive the request for collateral one (1) Business Day prior to the Business Day the incremental Deposits are received, and the Bank shall be required to deliver additional Eligible Collateral having a Market Value equal to or greater than the deficiency on the Business Day the incremental Deposits are received. (c) For any changes made to the Eligible Collateral held in the Account due to releases, substitutions, or additions of Eligible Collateral, the Custodian shall update its records of the Account accordingly as soon as possible and promptly issue a Trust Receipt to the Depositor and the Bank. (d) The Bank shall be entitled to income on Securities held by the Custodian in the Account, and the Custodian may dispose of such income as directed by Bank without approval of the Depositor, to the extent such income is not needed to meet the Collateral Requirement. 3. Custody of Securities The parties agree that all Securities held in the Account shall be treated as financial assets. For purposes of the Code, the security interest granted by Bank in the Eligible Collateral and Proceeds for the benefit of the Depositor is created, attaches, and is perfected for all purposes under Texas law from the time Custodian identifies the pledge of any Eligible Collateral or Proceeds to the Depositor and issues a Trust Receipt to the Depositor for such Eligible Collateral or Proceeds. The security interest of the Depositor in Securities and all Proceeds shall terminate upon the transfer of such Securities or Proceeds from the Account. 4. Delivery of Securities Bank and Depositor agree that Securities and Proceeds delivered to or received by Custodian for deposit in the Account may be in the form of credits to the accounts of Custodian in the Book Entry System. Bank and Depositor authorize Custodian on a continuous and ongoing basis to deposit in the Book Entry System all Securities and Proceeds that may be deposited therein and to utilize the Book Entry System in connection with its performance under this Agreement. Securities and Proceeds credited to the Account and deposited in the Book Entry System will be represented in accounts that include only assets held by Custodian or its agent(s) for third parties, including but not limited to accounts in which assets are held in a fiduciary, agency, or representative capacity. The Bank acknowledges that to the extent permitted by law, the records of the Bank and /or the Custodian with respect to the pledge of Eligible Collateral as described in this Agreement: (a) may be inspected by the Depositor or by the Texas Comptroller of Public Accounts (the "Comptroller "), at any FROST PUBLIC FUNDS ENTITY SECURITY AGREEMENT (FEBRUARY 2010) time during regular business hours of the Bank or the Custodian; (b) such records may be subject to audit or inspection at any time pursuant to Sections 2257.025 and 2257.061 of the Texas Government Code, as amended; and (c) reports must be filed by the Custodian with the Comptroller when requested by the Comptroller. 5. Collection of Securities If Depositor certifies in writing to Custodian that (a) Bank is in default under any underlying pledge or security agreement between Depositor and Bank, including the Depository Agreement and (b) Depositor has satisfied any notice or other requirement to which Depositor is subject pursuant to the Depository Agreement, then Depositor may give Custodian Written Instructions (x) to transfer specific amounts and issues of Securities held in the Account and, if applicable, specific amounts of the Proceeds held in the Account which have not previously been released to Bank, to designated accounts of Depositor and (y) to cease releasing to an account of Bank any Proceeds reflecting interest and principal on Securities in the Account as provided in Section 2(d). 6. Representation and Warranties (a) R of Bank Bank represents and warrants, which representations and warranties shall be deemed to be continuing, that: (i) the Board of Directors of the Bank has authorized the Bank to enter into this Agreement, and such authorization is reflected in the approving resolution of the Bank's Board of Directors and in the minutes of the meeting of the Board of Directors at which this Agreement was approved, and this Agreement has been legally and validly entered into and is enforceable against Bank in accordance with its terms; (ii) this Agreement and the pledge of Eligible Collateral under this Agreement do not violate or contravene the terms of the Bank's charter documents, by -laws, or any agreement or instrument binding on the Bank or its property, or any statute or regulation applicable to the Bank; (iii) the Bank has entered into this Agreement and the Depository Agreement (A) in the ordinary course of business, (B) in good faith and on an arm's - length basis with the Depositor, (C) not in contemplation of bankruptcy or insolvency, and (D) without intent to hinder, delay, or defraud the Bank's creditors; (iv) a copy of each of (A) this Agreement, (B) the Depository Agreement, and (C) the resolution of the Board of Directors of the Bank approving this Agreement and the minutes of the meeting of the Board of Directors at which this Agreement was approved, have been placed (and will be continuously maintained) in the official records of the Bank; (v) the Bank is sole legal and actual owner of the Securities or of beneficial interests in Securities deposited in the Account, free of all security interests or other encumbrances, except the security interest created by this Agreement; (vi) this Agreement was executed by an officer of Bank who was authorized by the Bank's Board of Directors to do so; (vii) the Bank is a bank or trust company duly authorized to do business in the State of Texas; and FROST PUBLIC FUNDS ENTITY SECURITY AGREEMENT (FEBRUARY 2010) 4 (viii) all acts, conditions, and things required to exist, happen, or to be performed on its part precedent to and in the execution and delivery of this Agreement by it exist or have happened or have been performed. (b) Representations of Depositor Depositor represents and warrants, which representations and warranties shall be deemed to be continuing, that: (i) this Agreement has been legally and validly entered into, has been approved by the Depositor's governing body, and does not and will not violate any statute or regulation applicable to it and is enforceable against Depositor in accordance with its terms; (ii) the appointment of Custodian has been duly authorized by Depositor and this Agreement was executed by an officer of Depositor duly authorized to do so; (iii) (A) all Securities identified on the Schedule of Eligible Collateral, attached hereto as Exhibit A, may be used to secure Depositor's Uninsured Deposits under applicable statutes and regulations, (B) the Collateral Requirement meets the requirements of such applicable statutes and regulations, (C) the governing board of Depositor has approved a collateral policy which authorizes all such Securities to be used as Eligible Collateral, and (D) such collateral policy complies with all applicable statutes and regulations; (iv) it will not sell, transfer, assign, convey, pledge, or otherwise dispose in whole or in part its interests in or the rights with respect to any Securities deposited in the Account, or the Proceeds of such Securities, except as permitted in Section 5 of this Agreement; (v) all acts, conditions, and things required to exist, happen, or to be performed on its part precedent to and in the execution and delivery of this Agreement exist or have happened or have been performed; (vi) Depositor will comply with the terms of any other agreements it may have with the Bank in connection with this Agreement; and (vii) In the event Depositor requests any financial services from the Bank other than depository services, the Depositor shall provide the Bank with a copy of the Depositor's current investment policy. 7. Continuing Agreement This Agreement shall continue and remain in full force and effect and shall be binding upon the Bank and its successors and assigns until such time as (a) all Deposits have been paid in full to the Depositor or otherwise paid as instructed by the Depositor, and (b) the Depository Agreement is no longer in effect. 8. Rights and Remedies of the Depositor The Depositor's rights and remedies with respect to the Collateral shall be those of a secured party under the Code and under any other applicable law, as the same may from time to time be in effect, in addition to those rights granted in this Agreement, in the Depository Agreement, and in any other agreement in effect between the Bank and the Depositor. The Depositor agrees to provide the Bank and the Custodian with reasonable notice of the sale, disposition, or other intended action subject to the provisions of this Agreement in connection with the Collateral, whether required by the Code or otherwise. FROST PUBLIC FUNDS ENTITY SECURITY AGREEMENT (FEBRUARY 2010) 5 9. Application of Proceeds by the Depositor In the event the Depositor sells or otherwise disposes of the Collateral in the course of exercising the remedies provided for in Section 5 above and in the Depository Agreement, any amounts held, realized, or received by the Depositor pursuant to the provisions of this Agreement, including the proceeds of the sale, in whole or in part, of any of the Collateral, shall be applied by the Depositor first toward the payment of any costs and expenses incurred by the Depositor in enforcing this Agreement, in realizing on or protecting any Collateral and in enforcing or collecting any Deposits, including attorneys' fees, and then toward payment of the Deposits in such order or manner as the Depositor may elect. Any Collateral remaining after such application and after payment to the Depositor of all the Deposits in full shall be paid or delivered to the Bank, its successors or assigns, or as a court of competent jurisdiction may direct. 10. Notices Any communication, notice, or demand to be given under this Agreement shall be duly given when delivered in writing or sent by telex or facsimile to a party at its address indicated below. If to the Depositor, at: Jennifer Miller, Director of Finance City of Coppell P.O. Box 9478 Coppell, TX 75019 If to the Bank, at: Ms. Donna Easterling Assistant Vice President Frost National Bank P. O. Box 1600 San Antonio, TX 78296 11. Miscellaneous (a) Updating Certificate of Authorized Persons Depositor agrees to furnish to Bank a new and updated "Certificate of Authorized Persons" substantially in the form of Exhibit B, attached hereto, or in similar form as Bank may require, within a reasonable amount of time after there are additions or deletions to list of Authorized Persons authorized to act on behalf of the Depositor. (b) Invalidity; Severability If any clause or provision of this Agreement is for any reason held to be invalid, illegal or unenforceable, such holding shall not affect the validity, legality or enforceability of the remaining clauses or provisions of this Agreement. (c) Amendment This Agreement may not be amended or modified in any manner except by written agreement executed by all of the parties. (d) Assignment and Binding Effect The Depositor may not assign all or any part of its rights or obligations under the Agreement without the Bank's prior express written consent, which may be withheld in the Bank's sole discretion. The Bank may assign or delegate all or any part of its rights or obligations under the Agreement, including, without limitation, the performance of the services described herein. The Agreement will be binding on and inure to the benefit of the successors and permitted assigns of either party. (e) Governing Law; Venue This Agreement shall be construed in accordance with the substantive laws of the State of Texas, without regard to conflicts of law principles thereof. Bank and Depositor hereby consent to the non - exclusive jurisdiction of a state or federal court situated in Bexar County, Texas, in connection with any dispute arising hereunder. Bank and Depositor hereby FROST PUBLIC FUNDS ENTITY SECURITY AGREEMENT (FEBRUARY 2010) irrevocably waive, to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to the laying of venue of any such proceeding brought in such a court and any claim that such proceeding brought in such a court has been brought in an inconvenient forum. Bank and Depositor each hereby irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of or relating to this Agreement. (f) Liability of the Parties The Bank's and Depositor's duties and responsibilities to each other are limited as set forth in this Agreement, except with respect to any provisions of the law which cannot be varied or waived by agreement. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, NEITHER BANK NOR DEPOSITOR WILL BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES (INCLUDING WITHOUT LIMITATION, LOSS OF REVENUE OR ANTICIPATED PROFITS) OR FOR ANY INDIRECT LOSS THAT THE OTHER PARTY MAY INCUR OR SUFFER IN CONNECTION WITH THE SERVICES PROVIDED HEREUNDER (EVEN IF SUCH PARTY HAS BEEN INFORMED OF THE POSSIBILITY OF SUCH DAMAGES), INCLUDING WITHOUT LIMITATION, ATTORNEYS' FEES. FROST PUBLIC FUNDS ENTITY SECURITY AGREEMENT FEBRUARY 2010) 7 IN WITNESS WHEREOF, the Bank and Depositor have caused this Agreement to be duly executed as of the o47 day of ZAW u A-0 1. :;2-6 1 / . THE FROST NATIONAL BANK, N.A. By Name: om ost III Title: Senior Executive Vice President Dated: DEPOSITOR ACCEPTS AND AGREES as of 3 , 2010 CITY OF COPPELL, TEXAS By �W,40, Name/tlay Philli Title: City Manager EXHIBIT A Schedule of Eligible Collateral Eligible Collateral All funds on deposit under the provisions of this agreement shall be continuously secured in accordance with the Texas Public Funds Collateral Act, Chapter 2257 of the Texas Government Code. The following securities are approved as collateral for the City of Coppell funds: 1. United States Treasury Notes, Bills, Bonds or obligations fully and unconditionally guaranteed as to principal and interest by the full faith and credit of the United States. 2. Obligations of the Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, or the Federal National Mortgage Association. 3. Obligations of the Government National Mortgage Association. 4. Direct obligations of this State or its agencies or instrumentalities. FROST PUBLIC FUNDS ENTITY SECURITY AGREEMENT (FEBRUARY 2010) A-1 EXHIBIT B CERTIFICATE OF AUTHORIZED PERSONS City of Coppell The undersigned hereby certifies that he is the duly authorized City Manager of the City of Coppell (the 'Depositor "), and further certifies that the following officers or employees of the Depositor have been duly authorized in conformity with the approval of the Depositor's governing body to deliver Written Instructions to The Federal Reserve Bank and/or Federal Home Loan Bank ( "Custodian ") pursuant to the Security Agreement between Depositor and the Bank dated and that the signatures appearing opposite their names are true and correct: Jennifer Miller Name Chad Beach Name Name Name Name file. Title Signature Signature This certificate supersedes any certificate of authorized individuals you may currently have on [seal] Title: City Manager Date: Director of Finance Title Asst. Director of Finance Title Title Title f 4 igr nature Signature Signature FROST PUBLIC FUNDS ENTITY SECURITY AGREEMENT (FEBRUARY 2010) B-1