Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 380]

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370

BOARD OF TRUSTEES

[September 10

Establishment of Control Disbursement Bank Account, First National Bank of Chicago

(14) In order to improve the efficiency of commercial banking operations, it is proposed that the University open a control disbursement checking account with the First National Bank of Chicago. T h e new account would be used to pay the major share of the University's non-payroll disbursements, now issued through the main operating account. T h e primary advantage of a separate account is that check-clearing amounts are known and funded daily. T h e new procedure will allow the University to keep its cash fully invested and eliminate the need for unnecessarily high balances in the main operating account. T h e annual cost of the proposed account, based upon current bank fees and anticipated volume, is estimated to be $51,700, a 17 percent reduction in current costs. The cost of this account will be paid in fees rather than through compensating balances. The vice president for business and finance and comptroller has recommended that authority be given to open an account for the purpose described on October 1, 1987, or as soon as necessary documentation can be completed. The vice president and comptroller has recommended as well that the Board of Trustees adopt the following resolution authorizing the opening of the account and the use of facsimile signatures. The resolution will also encompass the other University accounts a t the bank. I concur. Resolution Be It Resolved, that T h e First National Bank of Chicago (the "Bank") be, and it hereby is, designated a depositary in which the funds of the University of Illinois (the "University") may be deposited by its officers, agents, and employees, and that such officers, agents, and employees shall be, and each of them hereby is, authorized to indorse for deposit or negotiation any and all checks, drafts, notes, bills of exchange, and orders for the payment of money, either belonging to or coming into possession of the University. Indorsements for deposit may be by the written or stamped indorsement without designation of the person making the indorsement ; Be It Further Resolved, that the President and Secretary of the Board of Trustees, jointly, are authorized from time to time upon such terms and conditions as they may deem, advisable, to designate in writing to the Bank those officers, employees, and other agents of the University authorized to sign any and all checks, drafts, and orders, including orders or directions in informal or letter form, against any funds or accounts at any time standing to the credit of the University with the Bank, and that the Bank is authorized to honor any and all individual orders of any such person or persons signing the same, without further inquiry or regard to the authority of said person or persons or the use of the checks, drafts, or orders, or the proceeds thereof; Be It Further Resolved, that the Bank as a designated depositary of the University be and it (including its correspondent banks) is hereby requested, authorized, and directed to honor checks, drafts, and other orders for the payment of money drawn in the University's name, including those drawn to the individual order of any person or persons whose name or names appear thereon as signer or signers thereof, when bearing or purporting to bear the facsimile signatures, whether reproduced manually, mechanically, or otherwise, of the President and the Secretary of the Board of Trustees, jointly, and the Bank shall be entitled to honor, and to charge the account of the University for, such checks, drafts, or other orders for the payment of money, regardless of by whom or by what means the actual or