§19-201. City Depositories. [1]


(1) Pursuant to the provisions of Section 6-300 of the Charter, the City Treasurer is authorized to deposit City funds in the following banks or institutions:[2]

(a) Bank Hapoalim;

(b) Bank Leumi;

(c) Brown Brothers, Harriman & Company;

(d) First Union National Bank;

(e) Frankford Trust Company;

(f) Mellon Bank;

(g) JeffBanks, Inc.;

(h) CoreStates Financial Corp.;

(i) PNC Bank, N.A.;

(j) Berean Federal Savings Bank;

(k) Polonia Federal Savings and Loan;

(l) Prudential Savings Bank;
(m) Borinquen Federal Credit Union;

(n) Sentry Federal Credit Union;

(o) Weavers Way Federal Credit Union;

(p) Other Neighborhood Based Credit Unions:

(.i) whose deposits are insured by the National Credit Union Administration; and,

(.ii) which are chartered to serve a particular neighborhood located within the City of Philadelphia, or to serve the members of an organization representing a particular neighborhood.

(q) Chestnut Hill National Bank;[3]

(r) First Republic Bank;[4]

(s) United Bank of Philadelphia;[5]

(t) First Commercial Bank of Philadelphia;[6]

(u) Firstrust Bank;[7]

(v) Progress Bank;[8]

(w) Crusader Bank;[9]

(x) Commerce Bank/Pennsylvania, N.A.;[10]

(y) Asian Bank;[11]

(z) Pennsylvania Business Bank;[12]

(aa) The Philadelphia Trust Company;[13]

(bb) Summit Bank;[14]

(cc) Sovereign Bank.[15]

(dd) Citizens Bank.[16]

(2) Each City depository shall:[17]

(a) be insured by a Federal Corporation;

(b) make available to the City quarterly statements of condition and earnings; and

(c) provide the City with independently audited Annual Statements containing information no less complete than that required by the Securities and Exchange Commission from institutions under its jurisdiction, or, in the alternative, provide, with the approval of the City Treasurer, copies of Quarterly Reports, or in the case of institutions listed in sub-section 19-201(1)(j)--(p), the most recent Annual Reports, filed with appropriate regulatory authorities, containing information substantially similar to that otherwise required herein.[18]

(d) provide the City with an affidavit certifying that neither it, nor any of its affiliates, is, and none will become a high cost lender or a predatory lender as defined in Chapter 9-2400, Prohibition Against Predatory Lending Practices. The affidavit shall be in a form prescribed by the City Treasurer and shall be sworn by one or more of the officers of the depository.[19]

(e) provide the City with predatory lending information, which shall include, but is not limited to the market share ratio of the depository’s refinance loans in minority census tracts in Philadelphia to non minority census tracts in Philadelphia, and the market share ratio of the depository's refinance loans in low and moderate income census tracts in Philadelphia to middle and upper income census tracts as all terms describing census tracts are defined in 12 C.F.R. Pt. 955, App. A (as amended); and considering each affiliate separately in calculations.[20]

(f) provide the City with an annual statement of community reinvestment goals with regard to providing small business, home mortgage and improvement loans as well as other community development investments within low and moderate-income neighborhoods in the City of Philadelphia.[21]

(3) No application for depository status, except from the institutions listed in sub-sections 19-201(1)(j)--(aa), shall be considered unless the applicant has been established for a minimum of five (5) years, has been profitable for the last two (2) years, and has a minimum of one hundred million ($100,000,000) dollars in assets.[22]

(4) Security for Deposits:[23]

(a) Banks or institutions designated by the Council as depositories of City funds shall deposit with the Philadelphia Federal Reserve Bank, or another commercial bank, bonds or notes of the United States government, or United States Treasury obligations, or United States Agency obligations, or bonds of the Commonwealth of Pennsylvania or its instrumentalities, authorities, counties, cities, boroughs, incorporated towns, townships or school districts, or notes issued by the City of Philadelphia, or general obligation bonds of other States rated A or better by Moody's Investors Service or Standard and Poor's Corporation, equal to the deposits to be secured. The market value of the securities so pledged shall equal the deposit. The market value is to be determined by such bank or institution holding City deposits as of the close of business on the last day of the previous month or as of the opening of business on the first day of the present month. The determination of market value by the bank or institution holding the City deposits is to be signed by the bank auditor and is subject to approval by the City Treasurer.[24]

(b) Where a depository secures the deposit of City funds by depositing proper securities with the Federal Reserve or another commercial bank, such securities shall be in bearer form or accompanied by a proper assignment or power of attorney to transfer them. Any such deposit of securities shall be increased to the full amount required in case of any depreciation in its value.

(c) In lieu of the security required by sub-section 19-201(4)(a) of this chapter, a neighborhood-based credit union, or an institution listed in subsections 19-201(1)(m)--(p) may, at its option, provide as alternative security the pledge of federal deposit insurance from a federal corporation in the amount equal to one hundred percent (100%) of the deposit to be secured, up to the maximum insured amount provided by law. Deposits exceeding the maximum insured amount shall be secured in the manner prescribed in sub-section 19-201(4)(a).[25]

(5) Banks and institutions designated or appointed to act as City depositories shall be required to cash the checks received by City employees as compensation for services to the City, upon presentation and due endorsement thereon and, when required by the depository, upon proper identification of the persons presenting such checks for cashing.[26]

(a) If any bank or institution refuses to comply with the provisions of § 19-201(5) the Council may revoke the designation of such bank or institution as a City depository and the City Treasurer shall withdraw all City funds therefrom.

(6) The City Treasurer shall not keep any City funds on deposit in any bank or other financial institution designated by Council as a depository of City funds which:[27]

(a) provides, either directly or indirectly through such entities as its parent corporation, affiliate, subsidiary or agent, any of the following services:

(.1) uses City funds or deposits to underwrite any securities of a corporation, bank, or other financial institution having any investments, franchises, management agreements or operations of any kind in Northern Ireland, if such corporation, bank, or financial institution has not implemented the fair employment principles embodied in the MacBride Principles, as identified by Investor Responsibility Research Center (Washington, D.C.).

(.2) uses City funds or deposits to make any loans to or to provide any other financial services to a corporation, bank or other financial institution having any investments, franchises, management agreements or operations of any kind in Northern Ireland, if such corporation, bank, or financial institution has not implemented the fair employment principles embodied in the MacBride Principles as identified by the Investor Responsibility Research Center (Washington, D.C.).

(.3) uses City funds or deposits to provide any trade related credit or non-credit services to a corporation, bank, or other financial institution having any investments, franchises, management agreements or operations of any kind in Northern Ireland, if such corporation, bank, or financial institution has not implemented the fair employment principles embodied in the MacBride Principles as identified by the Investor Responsibility Research Center (Washington, D.C.).

(.4) engages in lending practices as a high cost lender or a predatory lender as defined in Chapter 9-2400. Prohibition Against Predatory Lending Practices.[28]

(7) The provisions of this section are intended to supersede the Act of April 29, 1929, P.L. 865, 53 P.S. § 15704.[29]