Bank depositories.
Memphis Charter, art. 81, § 1054
in effectSec. 1054. - Bank depositories.
The Act entitled "An Act to Charter the Memphis City Schools", passed January 27, 1869, and being Chapter 30 of the Acts of 1869, and all amendments thereto, constituting the Charter of the Board of Education of the Memphis City Schools, be, and the same is hereby amended, so as to authorize said Board of Education of the Memphis City Schools to enter into contract or contracts with any solvent bank or banks for the purpose of providing banking facilities and financial arrangements for said board of education; provided, however, that no such contract shall be entered into for a period of more than one year at a time; and provided further, that such contract shall be submitted to and approved by the Board of Commissioners of the City of Memphis.
Said Board of Education of the Memphis City Schools shall require that the contract or contracts with said bank or banks shall provide for interest on deposits of said board of education. Said board of education shall have authority to provide for advancement of funds to be made by said contracting bank or banks for payment of the drafts of said board of education pending the collection of school revenue for the current year; and for the payment by said board of education of interest upon such advancements at a rate not to exceed six percent (6%) per annum. Said board of education may enter into such banking contracts after advertising and receipt of bids, or it may make such contracts without advertisement and competitive bidding as the board of education may deem best and determined by resolution. The fact that any member of said board of education may be a director or stockholder in any bank shall not prevent said board of education from making such banking contract or contracts with such bank or invalidate such contract when made, provided no member of said board of education shall vote upon the making of such contract with any bank in which he is so interested.
In making such banking contract or contracts, the Board of Education of the Memphis City Schools shall have power and authority, and it shall be their duty, to take from any bank receiving deposits of the funds of the board of education under such contract or contracts, a bond sufficient in the opinion of the board of education to protect the interests of said board of education; provided, however, that the board of education may permit the contracting bank or banks, in lieu of a bond, to place bonds of any State or any civil division subordinate thereto, or any other evidence of a substantial obligation thereof, which may be purchased or accepted as collateral by any Federal Reserve Bank, or any other gilt-edge securities which may be approved by the board of education and the secretary of said board, in escrow so conditioned as to make the collateral so deposited primarily subject to the claims of the Board of Education of the Memphis City Schools for the loss of any sum or sums deposited by it with said contracting bank or banks.
In the event no contract is entered into by the Board of Education of the Memphis City Schools, as authorized herein, the board of education shall designate the bank or banks where all moneys belonging to and collected by the board of education shall be deposited, subject to the approval of the Board of Commissioners of the City of Memphis; and it shall be unlawful to deposit any moneys in banks other than those designated by the board of education and approved by the Board of Commissioners of the City of Memphis.
(Priv. Acts 1935, ch. 521, §§ 1, 2; Priv. Acts 1941, ch. 43, § 1; Priv. Acts 1951, ch. 147, § 1)
Source: City of Memphis, Code of Ordinances and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/tn/memphis/codes/charter?nodeId=PTICHRELA_ART81CHBOEDMESC_DIVIIFIAF_S1054BADEFetched: 10/28/2026