Los Angeles Municipal Code Art. 2 Linked Banking of City Funds

(Former Chapter 5, Article 4, redesignated by Ord. No. 176,355, Eff. 1-31-05.)

Section 20.93 Purpose. 20.94 Definitions. 20.95 Disclosures Required from Financial Institutions.

20.95.1 Additional Disclosures Required from Financial Institutions. 20.96 Evaluation and Ranking of Banking Institutions. 20.97 Reporting Requirements. 20.98 Award of Banking Business. 20.99 Exemption. 20.99.01 Rules and Regulations. 20.99.02 Consistency with Federal or State Law.

The City of Los Angeles in exercising its power to promote the long term economic well-being of its citizens and to ensure economic growth by encouraging fair lending practices and equitable provision of banking services throughout the City shall conduct City banking transactions to the extent permissible and consistent with applicable law and the City’s interests, with banking institutions that are rated by the Treasurer as performing best at providing financial services to members of all of the City’s communities, consistent with safe and sound operation of those banking institutions.

SECTION HISTORY

Added by Ord. No. 167,683, Eff. 4-26-92.

The following definitions shall apply to the following terms used in this article:

(a) “City” shall mean City of Los Angeles and all Departments for whose funds the City Treasurer is custodian and those
Departments who grant the Treasurer discretion over their funds pursuant to City Charter § 60(b).

(b) “Banking institution” shall mean:

(1) State and national banks;

(2) “Associations” and “savings associations” as defined in California Financial Code § 5102(a);

(3) “Federal associations” as defined in California Financial Code § 5102(b).

(c) “Banking services” shall include, but not be limited to, deposit services, electronic access services, disbursement services,
lending money on the security of real or personal property or without security and other credit services, clearing and safekeeping of
securities, wire transfers of funds, and collection, investment and disbursement services of funds associated with securities
transactions.

SECTION HISTORY

Added by Ord. No. 167,683, Eff. 4-26-92.

The Treasurer, on an annual basis, shall review and evaluate the information contained in the annual disclosure statements filed by banking institutions pursuant to this article. In addition, the Treasurer shall review any additional information deemed necessary or desirable in evaluating the performance of banking institutions including but not limited to the public sections of evaluations and reports prepared by federal and state agencies pursuant to the Community Reinvestment Act of 1977, as amended.

The Treasurer shall, on an annual basis, rank the performance of banking institutions. The Treasurer shall utilize mechanisms to rank banking institutions that allow use of the evaluations of their performance to conduct City banking transactions, while ensuring the fiduciary responsibility of the Controller, Treasurer and any other financial officer responsible for banking City funds.

The Treasurer’s annual evaluation and ranking of banking institutions shall be made available to the public.

SECTION HISTORY

Added by Ord. No. 167,683, Eff. 4-26-92.

The Treasurer shall, on an annual basis, publish a report pursuant to this article covering the prior year that contains, at a minimum, the following information:

(a) City banking activity and the volume of City banking transactions; and

(b) Rankings of the performance of banking institutions covered by this article; and

(c) Discussion of the ranking system used and the method used to arrive at each ranking.

The Treasurer shall from time to time report to the Mayor and City Council on the impact of this ordinance.

SECTION HISTORY

Added by Ord. No. 167,683, Eff. 4-26-92.

Upon completion of the first evaluation and ranking of banking institutions pursuant to this article, and thereafter, prior to conducting any banking transactions to which this article applies, the Treasurer shall review the ranking of the performance of each and every such banking institution. A banking institution which fails to submit the information required by this article shall not be eligible to conduct City banking transactions.

The Treasurer shall, consistent with sound fiscal practice and applicable law, include as a factor in the choice of banking institutions with whom to conduct City banking transactions the Treasurer’s evaluation and ranking of banking institutions as described herein and adopted hereto. The Treasurer may, upon making such evaluation and ranking, take the following measures:

(a) Increase the level of City banking business held by a banking institution;

(b) Freeze the level of City banking business in the institution at its then current level;

(c) Withdraw City banking business from a banking institution;

(d) Enter into negotiations with a banking institution aimed at promoting institutional programs and behavior that are consistent with the public policy goals heretofore stated;

(e) Take other such steps, consistent with sound fiscal practice and applicable law, as may be necessary or desirable.

SECTION HISTORY

Added by Ord. No. 167,683, Eff. 4-26-92.