Tennessee § 6-35-313 - Depositories of municipal funds.

§ 6-35-313. Depositories of municipal funds.

The council, at a regular meeting, shall adopt a resolution to contract with a bank or banks making the best proposal to become the depository of municipal funds. Before entering into a contract under subdivision (a)(1), the city manager or an officer appointed by the city manager shall review and analyze the proposals from the banks and submit an analysis of the proposals to each member of the council at or before the next meeting of the council. The analysis of the proposals should consider the bank or banks proposing the highest interest rate, potential service charges or other fees, factors affecting safety and liquidity of municipal funds, and any other relevant factors. The council shall require any bank that becomes a depository of municipal funds to secure the funds by collateral in the same manner and under the same conditions as state deposits under title 9, chapter 4, parts 1 and 4, or as provided in a collateral pool created under title 9, chapter 4, part 5. Notwithstanding any law to the contrary, at least once every four (4) years, the city manager or an officer appointed by the city manager shall reevaluate the contracts entered into pursuant to subsection (a). The city manager or an officer appointed by the city manager shall base its evaluation on proposals obtained from at least two (2) banks. The city manager or an officer appointed by the city manager shall prepare a written evaluation of the proposals and preserve the evaluations for at least three (3) years. Acts 1957, ch. 238, § 7.23; T.C.A., § 6-3522; Acts 1994, ch. 752, § 6; 2019, ch. 277, § 3. Amendments. The 2019 amendment rewrote this section, which read: “(a) The council shall designate a commercial bank or banks as depository or depositories for city funds and shall provide for the regular deposit of all city moneys.“(b) The council shall require any city funds deposited with a financial institution to be secured by collateral in the same manner and under the same conditions as state deposits, under title 9, chapter 4, parts 1 and 4, or as provided in a collateral pool created under title 9, chapter 4, part 5.” Effective Dates. Acts 2019, ch. 277, § 5. July 1, 2019.