Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 578]

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568

BOARD OF TRUSTEES

[June 9

Establishment of Depository Account, Urbana; and Establishment of Pledge-Custody Accounts

(16) University officers have solicited proposals for banking services for the Urbana Campus Depository Account, an account used to process checks received by cashiering operations before the funds are wired to the main operating account at the First National Bank of Chicago. An estimated 620,000 checks will be processed in Fiscal Year 1989 for such payments as tuition and fees, room and board, and other auxiliary enterprise receipts. Twelve responses to the request for proposals were received. The First Busey Bank and Trust of Urbana submitted the proposal offering the greatest economic advantage. The annual cost is estimated to be $37,750, an amount significantly below the current costs of these services. Accordingly, the vice president and comptroller has recommended: (1) that authority be given to establish a bank account for the purpose described with First Busey and that the following resolution be adopted. The account will be opened about July 1, 1988. Upon its implementation, the depository service with the current processor, the First National Bank of Chicago, will be discontinued. Further, the vice president and comptroller has recommended (2) that the board adopt the following resolutions authorizing the establishment of pledgecustody accounts with the Federal Reserve Bank of Chicago. These accounts will be used for safekeeping of securities pledged by banks as collateral for University deposits in excess of FDIC insurance maintained in those banks. Use of the Federal Reserve as a depository for this collateral provides added protection of the University's deposits in these financial institutions. I concur.

Resolution for Busey Bank Depository

Be It Resolved, 1. That the Busey Bank, Main Office, Urbana, Illinois, be and is hereby designated a depository of the University of Illinois in connection with an agreement to provide depository account services to the Urbana Campus of the University of Illinois, and that funds so deposited may be withdrawn upon a check, draft, note, or order of the University of Illinois. 2. T h a t all checks drawn on or payable against said account shall be signed by any two persons from time to time holding the following offices of this institution: President of the Board of Trustees Secretary of the Board of Trustees 3. T h a t Busey Bank be and is hereby requested, authorized, and directed to honor and to charge this institution for any and all checks drawn in the name of this institution upon said account with said Bank when bearing or purporting to bear the facsimile signature(s), of any officer(s) or any other person(s) heretofore or hereafter authorized to sign checks on behalf of this institution upon said account(s), no matter by whom, by what device, or how the actual or purported signature (s) may have been placed thereon, if such or signature (s) have the appearance of the facsimile specimen (s) from time to time filed with said Bank. 4. That the President and the Secretary of the Board of Trustees, jointly are authorized from time to time to designate in writing to the Bank those officers, employees, and other agents of the University authorized to issue written, telephonic, electronic, or oral instructions with respect to the transfer of funds of the University on deposit with the Bank (or otherwise transferable by the Bank), by wire or otherwise, without any written order for the payment of money being