2. Corporate Resolution - Multi Bank/Refco Securities LLCCity of Kalispell
Post Office Box 1997 -- Kalispell, Montana 59903-1997 - Telephone (406.) 75S-7700 Fax (40E)758-7758
REPORT TO: Mayor Kennedy and City Council Members
FROM: Amy Robertson, Finance Director
James H. Patrick, City Manager
SUBJECT: Multi -Bank Securities, Inc. investments held on behalf of the City
will now be Processed by Refco Securities, LLC -- motion will allow
staff to sip new paper work under the name of Refco replacing Bear
Stearns as the clearing house for Multi Bank Securities, Inc.
MEETING DATE: December 20, 2004
BACKGROUND: The City currently has investments with Multi -Bank Securities, Inc.
and Bear, Stearns Securities Corporation. Multi -Bank Securities has
replaced Bear, Stearns Securities with Refco Securities, LLC. These
companies act as clearing, houses for Multi Bank Securities, Inc.
This is a housekeeping request to authorize our signatures on the
paper work required by Refco and MBS. The same signatures will
appear on the authorization as currently appear on Multi Bank
Securities, Glacier Bank and STIP authorizations City Manager,
Finance Director and City Treasurer.
RECOMMENDATION: Authorize the signatures on account with Refco Securities, LLC.
FISCAL EFFECTS: No new fiscal effects - we currentlyhave $3 million in investments
in Federal Home Loan Bank step up securities through MBS.
ALTERNATIVES: As suggested by Council.
Amy H. Robertson James H. Patrick
Finance Director City Manager
Report compiled: December 13, 2004
Attachment: Refco Corporate Resolutions
REFCO®
REFCO SLCURITILS, LLC
CORPORATE RESOLUTIONS
1, Secretary of
a corporation organized under the laws of (the "Corporation"),
DO HEREBY CERTIFY that a meeting of the Board of Directors of the Corporation, held in accordance
with its governing instruments on the day of 20 , at which a quorum
was at all times present and acting, the following resolutions were duly adopted and that said resolutions
have not been amended, rescinded or revoked and do not conflict with any of the provisions of the
governing instruments of the Corporation.
(1) RESOLVED; That the below designated persons and each of them, or such other person as the
Corporation may designate from time to time either in writing or by his apparent authority be and hereby
are authorized to trade in any and all financial instruments, including, without limitation, securities,
commodities, and foreign currencies, for the account and risk of this Corporation through and with the
firm of Refco Securities, LLC ("Refco") and its successors the authority hereby granted including the power
to do any and all of the following:
(a) to buy, sell and agree to buy and sell financial instruments, on margin or otherwise, the power
to sell including the power to sell "short", and to give and to receive from Refco oral or written
instructions, confirmations, notices or demands with respect to any Account or transaction;
M to deposit with and withdraw from the account or accounts maintained at Refco money,
futures contracts, securities, and any other property;
W to receive requests and demands for additional margin, notices of intention to sell or purchase
and other notices and demands of whatever character;
(d) to receive and acquiesce in the correctness of such notices, statements of account and other
records and documents;
(e) to have complete authority at all times to bind the Corporation to enter into and perform any
transaction or agreement, amendment or modification thereof, relating to any Account or
transaction involving the Corporation;
(0 to lend or to borrow money or securities and to secure the repayment thereof with the property
of the Corporation;
(g) to pay in cash or by check or draft drawn upon the funds of the Corporation any sums required
to be paid in connection with any Account or transaction;
(h) to order the transfer or delivery of any securities, funds or other property to such officer or
agent or to any other person;
(i) to order the transfer of record of any securities, funds or other property to any name and to
accept delivery of any securities, funds or other property;
(j) to direct the sale or exercise of any rights with respect to any securities or other property;
(k) to sign for and on behalf of the Corporation all agreements, confirmations, releases, assignments,
powers of attorney or other documents in connection with any Account: or transaction;
(1) to agree to any terms or conditions affecting any Account or transaction;
(m) to endorse any securities or other property in order to pass title thereto (or to any interest therein),
(n) to direct Refco to surrender any securities or other property for the purpose of effecting any
exchange or conversion thereof or otherwise;
(a) to appoint any other person or persons to do any and all things which such officer or agent is
hereby empowered to do; and
CITY OF KALISPELL MT
I4017909 PAGE 1/2 UN. 800.967.9045
REFCO0
REFCO SECUKI IES, LLC
(p) generally to take all such action as such officer or agent may deem necessary or desirable
to implement or facilitate the trading activities authorized in the Resolutions, here under;
and it was further
(2) RESOLVED: That notices, statements, and demands upon the Corporation by or from Refco in
connection with the Corporation's account or accounts may be delivered verbally or in writing to
any of the below designated persons as though dealing with the Corporation; and it was further
(3) RESOLVED: That the execution and delivery of a Refco's Client's Agreement / Margin Agreement
For Introduced Accounts is hereby authorized and that the officers of the Corporation are hereby
directed to execute such Agreements by and on behalf of the Corporation and to deliver the same to
Refco; and it was further
(4) RESOLVED: That Refco is authorized to act upon the authority of these resolutions until receipt by
it of a certificate showing rescission or modification thereof signed by the Secretary of this Corporation
and under its seal, and that Refco is also authorized to recognize and deal with the officers of this
Corporation whose names are set forth in this certificate, until receipt by Refco of a further certificate,
setting forth the name(s) of another person or other persons as such officers; and it was further
(5) RESOLVED: That it is the intention of the Corporation to give the persons empowered to trade
in financial instruments the broadest possible power with respect to the account or accounts of the
Corporation, and the Corporation agrees to hold Refco harmless against any and all claims that may
arise by reason of following any instruction, order or direction given by any of the empowered persons.
I further certify that the Corporation is duly organized and existing, and pursuant to its governing
instruments, has the power to effect transactions in financial instruments and to take all actions as
recited in this resolution. Furthermore, Refco may rely upon this certification in establishing and
maintaining accounts for the Corporation.
AUTHOPUZ ) OFFICER/AGENTS
RESOLVED, that each of the officers or agents of the Corporation listed below is hereby individually
authorized for and on behalf of the Corporation C T L y 0 f K a l .i s p e l l
Name of Officer/Agent Title /Firm Name Specimen Signature
—J..a m..a......... ......... . Patrick C44_y...... _Manager.
Amy—iLL----Ra-he..r._t..s_cz--a_ E'-e__-_I1lr—e_s-t_c,_r..............
___C a r_o._l Kos t=rn.am............ Cj._L._y.....T r P a ..u.x,�........... ....
IN WITNESSTHEREOF I have hereunto subscribed my name and affixed the sea[, if any, of the Corporation, this
day of 20
SECRETARY
(CO ,PORATE :SEAL.)
CORPORATE. RESOLUTION ]'AGE 2/2 800.967.9045