Modesto Municipal Code Art. 6 Savings and Loan Certificates and Shares

As used in this article the words "insured institutions" mean an insured institution as defined in Title IV of the National Housing Act (Title 12, United States Code, Sections 1724, et seq.)

Whenever this, or any other provision of the Municipal Code permits the deposit and assignment of savings and loan certificates or shares, it shall be deemed to refer only to:

(a) Investment certificates issued by associations which are insured institutions.

(b) Shares issued by an association issuing no investment certificates, which is an insured institution.

(c) Shares issued by any duly chartered federal savings and loan association which is an insured institution.

(Added by Ord. 545-C.S., effective 12-25-62)

Neither investment certificates nor shares may be so deposited or assigned to the City unless:

(a) The amount or deposit with the savings and loan association to be so assigned is fully and completely insured by the Federal Savings and Loan Insurance Corporation, and

(b) The owner of such investment certificates or shares assigns them to the City and, at the same time assigns to the City so much of the insurance on the account by the Federal Savings and Loan Insurance Corporation as will fully and completely insure the amount assigned, and

(c) The owner of such investment certificates or shares agrees that the City may redeem, collect and withdraw the full amount represented by such investment certificates or shares at any time without notice to the assignor, and

(d) When assigned such investment certificates or shares shall be free and clear of all prior liens, encumbrances, holds, claims, or obligations, and

(e) The savings and loan association shall state in writing that the assignor's account is fully insured by the Federal Savings and Loan Insurance Corporation and that it has received no notice of any lien, encumbrances, hold, claim, or obligation of the account prior to the assignment to the City, and

(f) The savings and loan association agrees to make payment to the City upon request in accordance with the savings and loan laws applicable to it.

(Added by Ord. 545-C.S., effective 12-25-62)

The savings and loan association shall pay all dividends, interest or other earnings of any account represented by such assigned investment certificates or shares to the assignor until otherwise notified in writing by the appropriate officer of the City.

(Added by Ord. 545-C.S., effective 12-25-62)

The assignment, agreement by assignor, statement of, and agreement of, the savings and loan association, and the name of the appropriate officer shall be in substantially the following form:

ASSIGNMENT

SECURITY FOR: ___________ hereinafter called ASSIGNOR, whose principal place of business is _____

do (does) hereby assign, and set over to the City of Modesto, all right, title, and interest of whatever nature, of assignor, in and to the insured account of assignor in the _____

(Name of Savings and Loan Asso.)

evidenced by a FULLY PAID CERTIFICATE (or SHARE or SHARES) in the amount of $_______ numbered ;RULE;, which is delivered to the City of Modesto herewith. Assignor agrees that this assignment carries with it the right in the insurance of the account by the Federal Savings and Loan Insurance Corporation, and includes and gives the right to the City of Modesto to redeem, collect and withdraw the full amount of such account at any time WITHOUT NOTICE TO ASSIGNOR. This assignment is given as security for liability for ___________, including interest and penalties, and to insure compliance with the applicable Part or Parts of the Modesto Municipal Code.

Assignor hereby notifies the above-named Savings and Loan Association of this assignment.

Dated this _______ day of ________, 19___

_______ ;eol_______

RECEIPT FOR NOTICE OF ASSIGNMENT

Receipt is hereby acknowledged to the City of Modesto of written notice of the assignment to said City of the account and Certificate (or Share or Shares) identified above. We have noted in our records the City's interest in said account as shown by the above assignment and have retained a copy of this sheet. We certify that this account is fully insured by the Federal Savings and Loan Insurance Corporation and that we have received no notice of any lien, encumbrance, hold, claim, or obligation of the above-identified account prior to the assignment to the City of Modesto. We agree to make payment to the City of Modesto upon request in accordance with the savings and loan laws applicable to this association.

Dated this _______ day of ________, 19___

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RECEIPT FOR CERTIFICATE (or SHARE or SHARES) AND DIRECTION TO PAY EARNINGS

Receipt is acknowledged of the above assignment and the Certificate (or share or shares) identified in the above assignment. The savings and loan association named in the above assignment is hereby authorized and directed to pay any earnings on the above identified account to the above-named assignor until otherwise notified in writing by the ___________ of the City of Modesto.

Dated this _______ day of ________, 19___

CITY OF MODESTO

By _____ (Authorized Officer or Employee)

(Added by Ord. 545-C.S., effective 12-25-62)