Download US Bank - Douglas County

7)
Securities Transaction Settlement and Safekeeping
The County utilizes a third party as their securities Safekeeping agent. On June 30, 2013, the
County's portfolio consisted of sixty-seven (67) securities, which included U.S. Treasuries, Federal
Agency securities, Commercial Paper, Corporate notes and bonds and Municipal securities. The total
par value was approximately $112 million. Maturities of all these securities are under five (5) years.
investments prior to maturity.
The County generally does not sell
The Bank, as Safekeeping agent, has final responsibility for the proper settlement of all securities
transactions, along with receipt of any principal and interest payments due. All purchase and sale
transactions must be settled using "Delivery versus Payment" protocol. Preferably, Buy or Sell
transaction requests are provided using the Bank's Internet system and the Bank is responsible to
provide the secure website for such orders.
Safekeeping receipts, confirmations and Holdings reports should be provided, preferably, via the
Bank's Internet system. Market Price should be included on the Holdings Report and it is highly
desirable that pricing is as of the last business day of the month, close of business.
In the event of a failed transaction, the Bank must notify the County at least one (1) hour before the
delivery deadline in order to provide the County time to resolve the issue and settle same day. If the
transaction fails due to an error on the part of the Bank, the Bank will make the County, or harmed
party, whole. It is the preference of the County that proceeds from maturities and any interest
payments be posted to the County's bank account
by 8:00 a.m. Mountain Time (MT) on the day
payment is received.
U.S. Bank Safekeeping settles all trades Delivery versus Payment. The 0CC requires
that we only conduct business for the County upon receipt of specific written
instructions signed by a previously authorized individual. We have a secure mailbox
where trading instructions can be sent to us.
Confirms and Month End Report (which shows activity for the month, and security
position on the last business day of the month) are sent via U.S. mail or to SinglePoint.
Pricing occurs as of the second business day prior to month-end, but is projected to
month-end. Reports, confirms and Safekeeping Receipts are also available via
"Safekeeping on the Web," a free service where customers can download them in a
PDF format. Please refer to the Safekeeping Forms exhibit for complete detail.
We notify the County of trading issues as they happen and cannot guarantee that we would be able
to make the notification one hour prior to delivery deadline. U.S. Bank Safekeeping will notify the
County if we fail to deliver a security and will credit the customer the funds they should have
received if the delivery failure was due to our error. We will try to notify the County if we fail to
receive a security but we cannot guarantee that we will always do so. Our ability to notify the
County of failure to receive securities depends on the value of the trade and the number of failed
trades we have that day. We notify the County of failure to receive trades starting with the trade
highest in value to the lowest value. We may not have time to notify everyone about their failed
trade based on the day's activity.
In the proposal, the Bank shall provide the following information:
U.S. BANK IS ABLE TO FULLY PROVIDE THE SERVICE.