Fillable Security Agreement With Resolution (Page 2 of 2) in pdf

SECURITY AGREEMENT

INV-94A

Page 2 of 2

Duplicate

(February 2014)

Original

This agreement made and executed this _______day of __________________, 20____, by and between ______________________________________________________

(the” Depository”), a duly organized banking or other type of financial institution in the State of North Carolina, and either the State Treasurer of North Carolina , or the

finance officer of ____________________________________________________________(the “Public Depositor”) whose funds are required to be collateralized in

accordance with Title 20, Chapter 7 of the North Carolina Administrative Code (20 NCAC 7).

WHEREAS, the Depository desires to be and/or remain an official depository of public funds deposited by the Public Depositor; and

WHEREAS, the Depository is required by North Carolina General Statutes to collateralize the uninsured public deposits of the Public Depositor, and has elected or is required

to do so through the dedicated method as specified in 20 NCAC 7; and

WHEREAS, each party desires to be in compliance with the Federal Deposit Insurance Corporation’s Policy Statement dated March 23, 1993, regarding the collateralization of

public deposits:

NOW THEREFORE: it is mutually agreed between the parties as follows:

Subject to North Carolina Administrative Code,

All uninsured deposits shall be collateralized in accordance with the provisions of 20 NCAC 7.

Security Interest,

The Depository hereby pledges and grants in favor of the Public Depositor a lien and continuing security interest in any securities pledged to the Public Depositor

from time to time, all interest, dividends, distributions and sums distributed or payable therefrom, all other rights and privileges incident to such securities, and all

proceeds and profits of any of the foregoing (“Collateral”) as collateral security for all deposits maintained from time to time by the Public Depositor with the

Depository. The Depository shall take all necessary steps to perfect this security interest pursuant to the North Carolina Uniform Commercial Code.

Pledging Eligible Securities,

The Depository agrees to deposit with an eligible third-party escrow agent the required Collateral at all times as specified in 20 NCAC 7.

Release or Substitution of Securities,

The Depository shall have the right at any time to seek approval of the Public Depositor to substitute Collateral of equal or greater value and of eligible types. The

Depository shall provide the Public Depositor with a statement of the respective values of the Collateral to be replaced and the Collateral to be substituted. No

Collateral, except for normal income and principal distributions (not including proceeds of maturities), may be released and/or substituted without the prior

written approval of the Public Depositor.

Depository Representations,

The Depository represents and warrants to the Public Depositor that it is the owner of the Collateral and that such Collateral is and will remain free and clear of any

and all security interests, liens and claims of any other person, except for the security interest granted hereunder to the Public Depositor. The Depository shall be

deemed to repeat such representation with respect to Collateral delivered in addition to or in substitution of then existing Collateral. The Public Depositor’s sole

obligation to the Depository with respect to Collateral is to return or cause the return of the Collateral to the Depository at the termination, and full performance

by the Depository of, its obligations with respect to all deposits of the Public Depositor secured hereunder.

Approval by Board or Loan Committee of the Depository,

The Depository represents that it is duly authorized, by resolution of the Board of Directors or the Loan Committee of the Depository, and has full right, power and

authority, to execute this Agreement, and to pledge and grant a security interest with respect to the Collateral. The Depository has furnished a certified copy of the

authorizing resolution, contained herewith.

Continuously Maintain Agreement as Official Record,

The Depository further agrees that it will immediately upon execution keep and continuously maintain, as part of its official records, and executed copy of this

Agreement, and such other customary writings and records sufficient to identify those securities which have been pledged to the Public Depositor.

Rights Upon Default,

In the event of a default, as defined in 20 NCAC 7, the Public Depositor shall have all the rights and remedies of a secured party under the North Carolina Uniform

Commercial Code with respect to the Collateral, including without limitation the right upon default to collect, liquidate, sell or dispose of the same and apply the

proceeds thereof (after deducting therefrom all costs and expenses relating to collection , liquidation, sale or disposition), to the payment of any deposit arising out

of or as a result of the default of the Depository, with the Depository to remain liable for any deficiency, and with the Depository being entitled to any surplus

which may result.

Successors and Assigns,

This Agreement is continuing and binding upon the Depository, its successors and assigns, and shall inure to the benefit of the Public Depositor, and his successors

and assigns.

IN WITNESS THEREOF, the parties have executed this Agreement in duplicate originals, one of which is retained by each of the parties.

ACCEPTED:

__________________________________________________________

____________________________________________________________

(Depository)

(Public Depositor)

By: _______________________________________________________

By: _________________________________________________________

(Signature)

Title: _____________________________________________________

Title: ________________________________________________________