Agenda - Council - 11/13/2012 - Laserfiche WebLink

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Scope of Services ➢ FDIC/FSLIC insurance on deposits — Deposits at FDIC -insured institutions, including Village Bank, are insured up to at least $250,000 per depositor. In addition, all funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010 through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 that is available to depositors under the FDIC's general deposit insurance rules. The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts. ➢ Pledged collateral to the Public Funds — We provide collateral for all deposits to Public Funds of a type and in the amount as required by Minnesota State Law. We provide Public Entities a statement at month end indicating deposit balances, along with collateral pledged to the account including any Federal Home Loan Banks Standby Letters of Credit. Wells Fargo provides a month end report on all securities pledged, including market valuation. For this proposal, we are streamlining the collateral process to include only Federal Home Loan Bank Standby Letters of Credit. Additional information regarding this proposal is detailed under Miscellaneous Information. ➢ Daily "sweep" to money market checking, money market savings, electronic funds transfer (ACH for payroll), and other accounts as necessary — We offer daily sweeps from the City's checking account into other accounts at Village Bank. In addition, we offer electronic funds transfer (ACH for payroll). ➢ Depository for federal withholding and FICA taxes — Treasury tax and loan payments are no longer managed by Financial Institutions. Businesses are required to submit tax payments via ACH or check to the taxing authorities. ➢ Wire Transfer Services — We promptly process domestic wire transfers through the Federal Reserve Bank and send written confirmations of all wire transfers within 24 hours, unless you prefer to make other arrangements such as a phone call. ➢ Online Services — Online Banking provides access to all accounts 24 hours per day, 365 days per year. Internet banking features include the ability to: ■ View current account balances ■ Transfer between Village Bank accounts ■ Make payments to Village Bank loans ■ View pending transactions ■ View up to 24 months of statements -6-