Philadelphia Code § 19-201 City Depositories.
§ 19-201. City Depositories.
(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) Wells Fargo Bank, N.A.; 3
(b) PNC Bank, N.A.;
(c) United Bank of Philadelphia; 4
(d) TD Bank, National Association; 5
(e) Citizens Bank; 6
(f) Bank of America; 7
(g) Bank of New York Mellon; 10
(h) U.S. Bank; 11
(i) Fulton Bank, N.A.; 12
(j) JPMorgan Chase Bank, N.A.; 13
(k) Santander Bank, N.A. 14
(2) Each City depository shall: 15
(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 subsections 19-201(1)(j) - (p), the most recent Annual Reports, filed with appropriate regulatory authorities, containing information substantially similar to that otherwise required herein; 16
(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; 17
(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; 18
(f) provide the City with an annual statement of community reinvestment goals including the number of small business loans, home mortgages, home improvement loans, and community development investments to be made within low and moderate-income neighborhoods in the City of Philadelphia. Each depository shall also provide the City with a long term strategic plan to address disparities in its lending and investment activities. The strategic plan shall address how the depository will match or exceed peer lending performance in targeting capital access and credit needs disclosed in disparity studies commissioned by the City. On July 1 of each year, the City Treasurer shall certify to the President of City Council whether or not each bank and institution on the list of potential City depositories set forth in this Section has complied with each requirement of this subsection in the preceding fiscal year and shall withdraw all City funds from any bank or institution that has not complied with each requirement. No funds shall thereafter be deposited in such bank or institution until the bank or institution comes into compliance with each requirement and the City Treasurer has so certified to the President of City Council. The City Treasurer shall provide the President of City Council notification of the withdrawal of, and redeposit of, any City funds pursuant to this subsection; 19
(.1) City Council may, by resolution, establish a Responsible Banking Review Committee as an agency of Council. The Committee's purpose shall be to review the implementation, effectiveness and enforcement of this subsection (2)(f) and to make recommendations to Council regarding the authorization of City depositories. The Committee shall meet, from time to time, as convened by Council; 20
(g) provide the City with notice, if the depository proposes to close any branch, no later than 90 days prior to the date of the proposed branch closing. The notice to the City shall be sent to each member of City Council, the City Treasurer, the Commerce Director, and the Mayor's Office of Consumer Affairs. The contents of notice to the City shall include: 21
(.1) identification and/or address of the branch to be closed;
(.2) the proposed date of the closing;
(.3) a detailed statement of the reasons for the decision to close the branch; and
(.4) statistical or other information in support of such reasons.
(3) No application for depository status, except from the institutions listed in subsections 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 dollars ($100,000,000) 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. To the extent that the amount of City deposits or accounts held by a City depository are fully insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, they need not be secured as otherwise required in this subsection 19-201(4)(a). 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 subsection 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 subsection 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 subsection 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
(b) knowingly provides, either directly or indirectly through such entities as its parent corporation, affiliate, subsidiary or agent, any of the following services: 29
(.1) underwrites securities of an entity doing business in Iran or Sudan;
(.2) makes one or more loans or provides any other financial services to an entity doing business in Iran or Sudan; or
(.3) provides any trade related credit or non-credit services for an entity doing business in Iran or Sudan.
This subsection (b) shall not apply with respect to services provided to a business entity that the United States Government affirmatively declares to be excluded from a federal sanctions regime relating to Iran or Sudan or a federal override with respect to Iran or Sudan, as applicable, is in place. In the case of disqualification of an entity for use as a City depository based on the provision of services to an entity doing business in Sudan, the procedural requirements of Section 3(e) of the Sudan Accountability and Divestment Act of 2007, P.L. 110-174, 121 Stat. 2516 (2007), shall apply in addition to any other applicable procedural requirements. For purposes of this subsection (b), the terms "doing business in Iran", "doing business in Sudan", "federal override with respect to Iran", and "federal override with respect to Sudan" shall have the meanings set forth in Section 17-104 of this Code.
(7) The provisions of this Section are intended to supersede the Act of April 29, 1929, P.L. 865, 53 P.S. § 15704. 30
(8) City Payroll Depositories. 31
(a) For purposes of this subsection (8), "City Payroll Deposits" shall mean funds used to cover payroll expenses for employees paid out of the City Treasury.
(b) At least once every four years, the City Treasurer shall implement an RFP/RFQ process seeking applications from banks or other qualified institutions that wish to receive City Payroll Deposits. Such RFP/RFQ shall incorporate all the provisions of this Section 19-201 relating to the minimum qualifications of City depositories. In accordance with the terms of the RFP/RFQ, the City Treasurer shall tentatively select one or more institutions to receive City Payroll Deposits, and shall enter into negotiations with such institution or institutions to reach agreement on a proposed contract for such services, in terms approved by the Law Department, provided that all conditions set forth in this Section 19-201 for City depositories shall be incorporated in such contract.
(c) No contract with a proposed recipient of City Payroll Deposits may be executed until it has been approved by Council by ordinance. No such contract shall be approved by Council unless:
(.1) The proposed recipient submits a fair lending plan that responds to the latest annual lending disparity study or studies commissioned by the City relating to the performance of the proposed recipient and the performance of any other bank or other institution that the proposed recipient has acquired, and such plan, as well as the annual statement of community reinvestment goals described in subsection 19-201(2)(f), are attached as exhibits to the ordinance approving the contract; and
(.2) The contract is for a one year term plus not more than three one year renewal terms, each at the City's sole option. The contract shall further provide that the City may not exercise its option to renew the contract for any one year renewal term unless Council has expressly approved such renewal by Ordinance. No such renewal shall be approved by Council unless the proposed recipient submits an updated fair lending plan that responds to the latest annual lending disparity study or studies commissioned by the City relating to the performance of the proposed recipient and the performance of any other bank or other institution that the proposed recipient has acquired, and such updated plan, as well as the current annual statement of community reinvestment goals described in subsection 19-201(2)(f), are attached as exhibits to the Ordinance approving the renewal.
(d) In addition to any other requirements prescribed in this Chapter, each recipient of City Payroll Deposits shall provide quarterly updates on its current fair lending plan and on its progress toward achieving the objectives set forth in its most recent annual statement of community reinvestment goals. Such updates shall be filed with the City Treasurer and the Chief Clerk of Council, with copies to the President and all members of Council.
Notes
1 | Source: Based on various special Ordinances designating certain banks as City depositories. This list conforms to a list of approved depositories furnished by City Treasurer. Charter ref.: Section 6-300; Statutory ref.: Act of April 29, 1929, P.L. 865, 53 P.S. § 4553. Repealed, new Section added, 1966 Ordinances, p. 367; amended, 1980 Ordinances, p. 746; amended, 1983 Ordinances, p. 1302.
2 | Amended, 1979 Ordinances, pp. 974 and 1830; amended, 1986 Ordinances, p. 733; amended, 1986 Ordinances, p. 9; amended and subsections renumbered, Bill No. 970742 (approved May 26, 1998); amended and renumbered, Bill No. 030023 (approved May 20, 2003), effective July 1, 2003. Section 2 of Bill No. 030023 provides: "No bank or institution shall be reinstated or added to this list until it comes into compliance with subsection (2)(f) of Section 19-201." Amended, Bill No. 050830 (approved December 15, 2005); amended, Bill No. 070230 (approved August 16, 2007); amended, Bill No. 090663 (approved November 4, 2009); amended, Bill No. 100548 (approved November 10, 2010); amended, amended by Bill No. 241024 (approved June 13, 2025) .
3 | Amended, Bill No. 050829 (approved December 15, 2005); amended, Bill No. 100612 (approved November 10, 2010).
4 | Added, 1992 Ordinances, p. 633.
5 | Added, Bill No. 980679 (approved December 30, 1998); amended, Bill No. 090351 (approved June 3, 2009).
6 | Added, Bill No. 020048 (approved April 3, 2002).
7 | Added, Bill No. 030487 (approved October 15, 2003); amended, Bill No. 050746 (approved December 15, 2005); renumbered and former subsection (f) deleted, Bill No. 090663 (approved November 4, 2009).
10 | Added, Bill No. 090661 (approved December 23, 2009). Enrolled bill added this as subsection (l); renumbered by Code editor. Renumbered, Bill No. 100548 (approved November 10, 2010); former subsection (i) deleted, Bill No. 110560 (approved November 14, 2011); added, Bill No. 130227 (approved June 17, 2013).
11 | Added, Bill No. 130587 (approved April 4, 2014). Enrolled bill added this as subsection (i); renumbered by Code editor.
12 | Added, Bill No. 180010 (approved May 9, 2018). Enrolled bill added this as subsection (l); renumbered by Code editor.
13 | Added, Bill No. 190509 (approved October 30, 2019).
14 | Added, Bill No. 210006 (approved March 1, 2021).
15 | Amended, Bill No. 970518 (approved June 23, 1998).
16 | Amended, Bill No. 970742 (approved May 26, 1998); amended, Bill No. 980679 (approved December 30, 1998).
17 | Added, Bill No. 000715-A (approved April 19, 2001), effective 90 days following enactment.
18 | Added, Bill No. 000715-A (approved April 19, 2001), effective 90 days following enactment.
19 | Added, Bill No. 020047 (approved March 20, 2002); amended, Bill No. 030022 (approved April 24, 2003); amended, Bill No. 050745 (approved December 15, 2005); amended, Bill No. 060015 (approved March 16, 2006); amended, Bill No. 060469 (approved June 28, 2006).
20 | Added, Bill No. 120650 (approved October 17, 2012).
21 | Added, Bill No. 060939 (approved February 21, 2007).
22 | Amended, 1991 Ordinances, p. 1270; amended, 1992 Ordinances, pp. 630, 632 and 633; amended, 1993 Ordinances, p. 31; amended, Bill No. 970742 (approved May 26, 1998); amended, Bill No. 980679 (approved December 30, 1998); amended, Bill No. 990570 (approved December 7, 1999); amended, Bill No. 000020 (approved March 28, 2000); amended, Bill No. 000106 (approved April 4, 2000).
23 | Amended, 1986 Ordinances, p. 733.
24 | Source: Act of April 29, 1929, P.L. 865, 53 P.S. § 4553; amended, 1973 Ordinances, p. 865; amended, Bill No. 110371 (approved July 5, 2011).
25 | Amended, 1991 Ordinances, p. 1270; amended, Bill No. 970742 (approved May 26, 1998); amended, Bill No. 980679 (approved December 30, 1998).
26 | Source: 1938 Ordinances, p. 447.
27 | Added, 1986 Ordinances, p. 65; amended, 1993 Ordinances, p. 577; amended, Bill No. 890 (approved March 29, 1995), 1995 Ordinances, p. 161.
28 | Added, Bill No. 000715-A (approved April 19, 2001), effective July 18, 2001
29 | Added, Bill No. 080746 (approved December 16, 2009), effective June 16, 2010.
30 | Amended by deleting subsections 19-201 (6) and (7) and renumbering former subsection (8) to (7), to eliminate South African restrictions, 1994 Ordinances, p. 914.
31 | Added, Bill No. 060387 (approved June 28, 2006); amended, Bill No. 100549 (approved November 10, 2010); amended, Bill No. 130011 (approved April 2, 2013).