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Title 07
Chapter 07.10
Section 07.10.040
 

Title 07 Finance

Chapter 07.10 Payment of Warrants – Line of Credit

Section 07.10.040 Procedures
  1. The chief financial officer or the treasurer is delegated the authority to determine the amount of credit which shall be extended from time to time, subject to limitations set forth in SMC 7.10.020.

  2. The depositary shall notify the City of the amount of warrants it has received the previous day. The City may authorize the payment of the warrants or, if a legal basis exists, not authorize payment of the warrants so presented.

    1. If the City determines to authorize payment of the warrants when so presented, it may do so orally and, thereafter, direct the depositary to pay such warrants by drawing down on the line of credit.

      1. The drawing down on the line of credit will create a debt on which the City agrees to pay interest at the rate and in the manner set forth in SMC 7.10.030.

    2. Interest on the amount of credit extended shall accrue until the principal amount of credit extended on the line of credit is paid. One day’s interest shall be paid for each calendar day, or any part thereof, that the line of credit remains extended.
       
  3. If the City is unable to wire transfer immediately available federal funds as provided herein within ten business days of such extension of credit, it shall make all reasonable efforts to issue tax anticipation notes to repay the credit so extended.
     
  4. If the depositary is not paid within ten business days of notification to the City, then it shall have the option to refuse to further extend credit on the line of credit.
     
  5. At the conclusion of the quarter (as set forth in SMC 7.10.030) the depositary shall notify the City of the total amount of interest due, and the City shall pay said amount within ten business days of such notification.
     
  6. No interest shall accrue on the amount of interest due from the due date until paid as provided herein. If the City does not pay the total amount of interest due within ten business days of notification, the interest at the rate set forth in SMC 7.10.030 shall accrue on the total amount of interest due from the due date until payment.

Date Passed: Monday, May 7, 2007

Effective Date: Wednesday, June 20, 2007

Recodification ORD C34024 Section 1

May 5, 2024