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HomeMy WebLinkAboutResolution No. 06-22 Bank Account for Cigna RESOLUTION NO.llli=.22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNIVERSITY PARK, TEXAS, AUTHORIZING THE ESTABLISHMENT OF A DEMAND DEPOSIT ACCOUNT WITH JPMORGAN CHASE BANK FOR USE BY CIGNA HEALTHCARE FOR THE CITY'S EMPLOYEE HEALTH INSURANCE PROGRAM; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, CIGNA HealthCare (hereinafter referred to as the "Administrator") will administer health and accident benefits programs of the City of University Park, Texas, (hereinafter referred to as the "City"); and WHEREAS, to facilitate the administration of such benefits programs, the City desires to open an account with lPMorgan Chase; NOW, THEREFORE, BE IT RESOLVED, that the City open a demand deposit account with lPMorgan Chase, Account No. (such account being hereinafter referred to as the "Account"), and that the officers and agents of the City and of the Administrator are authorized to deposit funds into the Account and that the officers and agents of the Administrator are further authorized to deliver standing instructions to lPMorgan Chase respecting deposits of funds of the City to be made to the Account and corresponding debits to such other account of the City as shall be specified by the City; and FURTHER RESOLVED, that until the further order of the City Council, any of the funds of the City or of the Administrator deposited in the Account shall be subject at any time to withdrawal or charge upon the following terms only: (1) in accordance with orders or instructions delivered to lPMorgan Chase in the name of the Administrator electronically, orally, in writing, or by any other method and (2) upon debits or charges to the Account effected by lPMorgan Chase in connection with returns or reversals of amounts previously credited to the Account or adjustments of erroneous credits; and FURTHER RESOLVED, that lPMorgan Chase is hereby authorized to permit any such withdrawal or make any such charge in accordance with such instructions without inquiry as to the circumstances of such \vithdrawal or charge or the disposition of the proceeds and, at lPMorgan Chase's option, even if the Account is not in credit to the full amount of such withdrawal or charge; it being understood that some or all of the funds on deposit in the Account will be transferred from time to time to an account or accounts maintained by the Administrator with lPMorgan Chase; and FURTHER RESOLVED, that lPMorgan Chase shall not, unless otherwise directed by a representative of the Administrator whose name and signature has been certified to lPMorgan Chase by an officer of the Administrator, (1) act on a stop-payment request, (2) except as hereinabove described, withdraw or permit the withdrawal of any amount from the Account; and 230624vl FURTHER RESOLVED, that (1) all statements of account in connection with the Account, (2) all balance and transaction information in connection with the Account, (3) all information regarding checks, and (4) all correspondence received by lPMorgan Chase in connection with the Account shall be transmitted or mailed by lPMorgan Chase to the Administrator and not to the City; and FURTHER RESOLVED, that the City shall be liable for any and all overdrafts in the Account and unconditionally promises to pay to lPMorgan Chase the amount of each such overdraft, it being understood that the City's arrangements with the Administrator may contemplate the existence of overdrafts in the Account from time to time; and FURTHER RESOLVED, that the City authorizes and directs its City Secretary to promptly notify lPMorgan Chase in writing of any change in these resolutions, that any such change shall not be effective until lPMorgan Chase has received such written notice of the same at such address as lPMorgan Chase shall specify, and has had a reasonable opportunity to act on it and that until such time, lPMorgan Chase is authorized to continue to act in accordance with these resolutions and shall be indemnified and saved harmless from any loss or liability incurred in continuing to act in accordance with these resolutions, even though these resolutions may have changed. DUL Y PASSED by the City Council of the City of University Park, Texas, on the 19th day of December 2006. APPROVED: J ATTEST: I 2 230624vl