Bank Bid Process

CRITERIA FOR SELECTING CENTRAL ARKANSAS LIBRARY SYSTEM (CALS) PRIMARY BANKING ACCOUNT SERVICES

SEC. 1. CRITERIA FOR SELECTION

CALS shall review the terms of its primary checking account as deemed necessary by the Finance Committee and the Director of Finance of CALS. CALS will request qualifications from banks which meet the following general criteria:

1. The bank shall operate somewhere in the CALS service area, which is defined as Pulaski and Perry Counties, exclusive of the City of North Little Rock.

2. The bank shall have either its main office or a branch conveniently accessible to the downtown library.

SEC. 2. SPECIFIC CRITERIA

1. The banking institution must be licensed by the federal government and be a part of all relevant federal insurance plans.

2. The banking institution must be licensed by the state of Arkansas.

3. The banking institution must be capable of and agree to provide CALS the following banking services:

a. Complete ACH transfer, wire transfers, investment services, direct deposit, credit card services, and Internet banking;

b. Collateralize at least 102 percent (102%) of the daily account balances with U.S. Government Securities, Government Agency Securities, or other instruments authorized by Arkansas law;

c. Provide CALS with a monthly statement that details daily account balances, average interest rate applied, and the dollar amount of interest credited various CALS accounts.

4. The bank shall pay interest on CALS average daily checking balance at a rate commensurate to other public agencies with similar financial resources.

5. The bank shall charge CALS no more than the fees charged other public agencies with similar financial resources.

SEC. 3. METHOD OF SELECTION

Banks who meet the criteria in Sections 1 and 2 shall be established by the Finance Committee of the CALS Board of Directors.

SEC. 4. LENGTH OF THE BANKING AGREEMENT

Provided that the selected bank meets and agrees to the terms in Section 2, said bank shall be the CALS deposit bank for as long as deemed appropriate by the Finance Committee and the Director of Finance of CALS.

SEC. 5. INTENT

It is the intent of CALS to provide an equal opportunity for all banks that meet the criteria in Section 1 to have access to CALS funds on a periodic basis. Notwithstanding the provisions in Section 1, CALS shall make every reasonable effort to invest some funds in those banks that do not meet the criteria in Section 1. These investments may include, but are not limited to, CDs, Treasury Bills, and the miscellaneous endowment checking account. It is the intent of CALS to effectively manage its money to ensure maximum efficiency of its finances.