HomeMy WebLinkAboutAGENDA REPORT 1994 1005 CC REG ITEM 08HITEM-8-A'
City of Moorpark
Agenda Report 3 -1 w V
TO: The Honorable City Council /OGI
FROM: Richard Hare, Deputy City Mang
i
DATE: September 15, 1994 (CC. Mtg. 1 /5/94)
SUBJECT: Consider Adoption of Resolution 94 -1() $
Establishing a Cash Account with Prudential
Securities Authorizing the Execution of the
Delivery Versus Payment Agreement.
Background
The City of Moorpark from time -to -time places orders for
investments with Prudential Securities. Prudential Securities
requires a Cash Account Authorizing Resolution and a Delivery
Versus Payment Agreement for their records. The attached Cash
Account Authorizing Resolution and the Delivery Versus Payment
Agreement are provided for Council's information and approval.
Recommendation:
Approve Cash Account Authorizing Resolution; authorize City
Officers to sign, and authorize the City Treasurer to execute the
Delivery Versus Payment Agreement.
C: \WPDCCS \ CC. REP \PRUDENT'. .WPI;
001 17
June 15, 1994
Mr. Richard Hare
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021 -1155
Dear Richard:
Prudential Securities
In a recent review of our files, your account is missing the
following documents:
✓Delivery Versus Payment Agreement
Master Agreement- Forward Transactions
✓ Authorizing Resolution
Master Repurchase Agreement
Please sign and return as soon as possible. A postage -paid
envelope is enclosed for your convenience.
We are sorry for the inconvenience. Please call me with any
questions you may have at (213) 486 -5481.
Sincerely,
t✓
Camille Arnet Perry
Sales Assistant
Enclosures
Prudential Securities h orporated, 777 South Figueroa Street, Suite 4700, Los Angeles, CA 90017 Tel 213 486-5200
Fax 213 4865295
v v 9 Prudential Secunfues � sb
Deliver Versus Payment Agreement
Prudentma Secunt es Incorporated is a subsidiary of The Prudential Insurance Company of Anwica, Newark, New Jersey
A study by the Banking & Securities Industry Committee has led to certain rules changes by the New York and American Stock Exchanges
( "NYSE" and "AMEX" respectively). These rules are designed to reduce the number of security deliveries rejected by agent banks by eliminating
one of the major reasons for rejection —lack of accurate instructions at the agent bank by settlement date.
Prudential Securities Incorporated ( "the firm ") adheres to the rules and regulations set forth by the NYSE and AMEX. Accordingly, the firm is asking
you, referred to below as "the client ", to sign this Delivery Versus Payment ( "DVP ") Agreement, retaining one copy for your fibs and returning the
original to the Financial Advisor servicing your account. Your Financial Advisor will be pleased to answer any questions relating to this agreement.
The agreement is as follows:
1. The Client will issue standing instructions to its agent receiving bank(s) to receive from or deliver to the firm against payment any security
pursuant to the procedures of this agreement. Specific instructions for each transaction must be in the possession of the agent bank(s) no later
than one business day before settlement date on purchases and two business days before settlement date on sales.
2. The Client's instructions to its settling agent will comply with NYSE Rule No. 430, which states in part:
...." Mhe (client) placing the order or its agent will receive against payment securities in an amount equal to any execution confirmed to the
(client), even though such an execution may represent the purchase of only a part of a larger order."
3. The Client will issue standing instructions to the firm to receive from or deliver to its agent receiving bank(s) against payment any security
pursuant to the provisions of this agreement.
4. The firm will transmit to the Client a confirmation of each transaction promptly after transaction is made. If necessary, alternate means of
notification will be used in addition to the confirmation in order to insure that the Client is notified of all pertinent trade information no later than the
day following execution of each DVP transaction. At the Client's request, a duplicate information copy of each confirmation will simultaneously be
transmitted to the designated individual at the Client's agent bank. It is understood that the use of copies of confirmations to the settling agent is
an information service and does not relieve the Client from his obligations under paragraph 1 of this agreement.
5. - Arbitration is final and binding on the parties.
-The parties are waiving their right to seek remedies In court, including the right to Jury trial.
- Pre - arbitration discovery Is generally more limited than and different from court proceedings.
-The arbitrators' award Is not required to Include factual findings or legal reasoning and any party's right to appeal or to seek
modification of rulings by the arbitrators Is strictly limited.
- The panel of arbitrators will typically Include a minority of arbitrators who were or are affiliated with the securities Industry.
The undersigned agrees, and by carrying an account for the undersigned you agree, all con rovenles which may arias between us
concerning any transaction or the construction, performance or breach of this or any other agreement between us, whether entered Into
prior, on or subsequent to the date hereof, shall be determined by arbitration.
This contract shall be governed by the laws of the State of New York, and shall Inure to the benefit of your successors and assigns, and
shall be binding on the undersigned, my heirs, executors, representatives, attorneys -In -tact, administrators and assigns. Any
controversy arising out of or relating to my account, to transactions with or for me or to this Agreement or the breach Unroof, and
whether executed or to be executed within or outside of to United States, and any controversy arising out of or relating to transactions
In commodities or contracts related thereto executed on or subjem:t to to rules of a contract market designated as such under to
Commodity Exchange Act, as amended, shall be settled by arbitration before either the New York Stock Exchange, Inc, or to National
Association of Securities Dealers, Inc. or any other sett - regulatory organization of which Prudential Securities Incorporated Is a
member, as I may elect and under the then existing arbitration procedures of the forum I have elected. If I do not make such election by
registered mail addressed to you at your main office within five (S) days after demand by you that I make such election, then you may
make such election. Notice preliminary to, In confunlction with, or Incident to such arbitration proceeding, may be sent to me by mail and
personal service Is hereby waived. Judgment upon any award rendered by to arbitrators may be entered M any court having
jurisdiction thereof, without notice tome. No person shall bring a putative or certified class action to arbitration, nor seek to enforce any
pre - dispute arbitration agreement against any person who has Initiated In court a putative class action; or who Is a member of a
putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (f1 the
class certification is denied; or (ii) the class Is decertified; or (III) the customer Is excluded from the class by the court. Such
forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this agreement except to the extent
stated herein.
6. The Client agrees to instruct its agent bank to receive or deliver against the amount shown on the original trade confirmation unless any
discrepancy in money amount exceeds 2 percent of the total money involved in that delivery. The firm and the Client agree to resolve later any
discrepancy in such money amount directly. This contract shall be governed by the laws of the State of New York and shall inure to the benefit of
the Client's successors and assigns and shall be binding on the undersigned, its heirs, executors, representatives, attomeys -in -fact, administrators
and assigns.
The Client is aware that in the event any good delivery to the designated bank is refused, the DVP provisions of Regulation T of the Board of
Governors of the Federal Reserve System are no longer applicable and the firm may be compelled to cancel or liquidate the transaction. The Client
is liable for any loss and costs resulting from such cancellation or liquidation. The Broker shall have a general lien on all properties the Client may_
have on deposit with the Broker either singly or jointly with another or otherwise and may, without notice to the Ment, at the Broker's discretion,
liquidate or transfer any such property in order to satisfy any indebtedness the Client may have to the Broker. The Client shall be liable for any
remaining deficiency in any of the Client's accounts.
By signing this agreement, the client acknowledges that he/she has received a copy of this agreement.
This agreement contains a pre - dispute arbitration clause st,page 1 at pa ph S.
Prudential Securities Incorporated /
0, 2�Z jl i, k
Account Till Cn Authorize Signatu fe
T c J ` etc _ - Al
Print Name and Title Date
Form 3906 (Rev 10-93)
Prudential Securities Incorporated, One Seaport Plaza, New York, N'r 10292
NEW ACCOUNT COPY
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