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HomeMy WebLinkAbout08-02-1926 Special Meeting J ~~ SPECIAL MEETINF OF THE CITY COm~CIL OF THE CITY OF CLERMONT held AUGUST 2nd, 1926 At the Clerks office. \j H. Meeting was called to order by its President, Mr. Brown. ~. ,." Roll call by Cler~, Isam Blackburn, showed the following present:- H. C. Brown, Pres. of Council C. E. Tabor, Andy Aasheim, ' H. F. Bailey, W. M. Davenport, Mr. H. v. Brown stated that the object of the meeting was to accept or reject a plan for reopening the First $tate' Bank of Clermont, which was as follows:- W. N. McKinney, Mayor B. W. Waite, Attorney Isam Blackburn, Clerk. , I THIS AGREEMENT, ,Made and Entered into this day of July, A. D. 1926, Between the First State Bank of Clermont, a corporation organized and existing under the laws of the State of Florida, having its principal place of business at Clermont, Lake County, Florida, hereinafter 'called the party of the first part, and the depositors of said First St~te Bank of vlermont who have signed this agreement, hereinafter called the parties of the second part. '"r WITNESSETH, That WHEREAS the First State Bank of Clermont, of Clermont, Lake County, Florida, suspended business on July 16, 1926, and is now in the hands of the State Comptroller, and if allowed to remain in the hands of the State Comptroller it will be necessary for a receiver to be appointed for said bank; and I, : > . 1 , WHEREAS~ if a reciever is appointed it will be very costly and expensive and. require 'a considerable lengltJh. of time before the depositors will receive any percent of 'their deposits; and ; : . WHEREAS, on account of the failure of a large number of banks in the State of Georgia that belong to what is commonly known as the "Witham System," for which the Bankers Trust Company and Bankers Finance Company acted as fiscal agent, a large sum of money belonging to the First State Bank of Clermont has been lost; and .,. J 1JYHEREAS, it is the judgement of the officers and direc:bbrs of the First State Bank of Clermont that with the cooperation of the depositors the Bank will be reopened within a short time, provided said depositors shall execute this agreement and therby insure the stability of the safuft Bank; . 1:, ' THEREFORE, for and in consideration of the SQ~ of One Dollar ($1.00) each to the other in hand paid, the receipt whereof is hereby acknowledged, and the furhter consideration of the mutual and dependent covenents hereinaftermade, the parties t6 this agreement have agreed and do agree as follows: :'-.~ '..'. J' ' I.-The undersigned depositors do hereby covenent and agree that theparty of the first part shall immedialy charge of 20% of thier respective deposits of any nature whatsoever except such public deposits as are fully secured, and. therby liquidate and discharge any and all loss of the First State Bank of Clermont as estimated by its officers. 2.-It is also further lLYlderstood and agreed that immediatly upon the reopening of said First State Bank of Clermont said unse<!mrecfredepeEJfutb:DsrshaThlllbe paid in cashandamoun t equal to 5% of their deposits less the amount of 20% charged off, as above set fODth; and as evidence of the balance of their de- posits after the deduction of said cash payment and the amount agreed to be charged off pursuant to the provisions hereof, said flc'')c':'; ;~ors depositors agree to accept form said bank certificates of deposit covering a period of months and payable as follows: .. ~. September 15, 1926 . __ . . . . . . . .5%. December 15, 1926 . . . . . . . . . . 5% Feby 15, 1927 . . . . . . . . . .5% May 15, 1927 . . . . . . . . . .5% November 15, 1927 . . . . . . . . .10% Eebruary 15, 1928 . . . ... . . . .20% May 15, 1928 . . . . . . . . .20%, November 15, 1928 .........25% . ',"; Each of said cer.tfuftc~tes of deposit shall bear interest fnom the maturity thereof at the rate of four ~er cent (4%) per annum. 3.-The First State Bank of Clermont does hereby covenant and agree that any moneys collected by ot from the accounts receivable charged off under this agreement, or any part the@eof, shall, whBn so collected from time to time, thereafter be paid proportionately to said depositors in accordance with the amount of loss charged off, as aforesaid; that all net earnings of said bnak less necessary operating expenses, in- cluding salaries and other legalexpenditures, shall be paid over to said depositors until such time as moneys so received, as set. forth in this paragraph, shall fully liquidate the loss charged off to each depositor, it being the intention that no d~vidends shall be paid on any of the stock, but that any profits made after said expenses are paid andaa~lomone~s re- cieved fiDOTIl said accounts receiv8Jble")c~iDged off by the bank shall all be paid to tbB depositors proportionately with a v~ew of paying said loss in full, without interest; and that the surplus and undivided profits of the bank shall not be frozen, but ma~by used for the accomodation and benefit of the de- positors. I 4.-The Comptroller, on July 1926, ordered an ass- essment and a levy of one hundred per cent again~t each and every share of stock of the First State Bank of ~lermont, which assessment, when collected, according to law shall be made a part of the assets of the bank. 5.-It is also understood mnd agreed that as soon as eighty per cent of all deposits of 'said banl{: are represented by a sufficient number of depositors, this contract may be simultaniously executed in several counterparts, each of which when so executed shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. This agreement shall be binding upon and insure to the benefit of the respective parties, their heirs, executors, administrators, successors and assigns. ; ~ IN WITNESS WHEREOF, the First State Bank of Clermont has caused this instument to be signed fu~ it's name by it's President, attested by its Cashier, and it's corporate seal to be fisEem,ohaf-fltJ&l.ed, on this the day of JUly, A. D. 1926; and the parties of the second part have hereunto set their hands and seals. FIRST STATE BANK OF CLERMONT ..,.1 ~' By . President. f At t est :: . Cashier. .:.~ '. 'i' vI- ~ ~, 1 \. s .~. i, J ; I j' I I I I .~ '~': r " The Clerk then read 'the following resolution, which was unamously adopted:- WHEREAS, the directors of the First State Bank of Clermont, .t'lorida, on the 16th day of July, 1926, deemed it advisable and for the protection end best interests of its depositors, to suspend business temporarily on account of unforeseen conditions brought about forces beyond their contrlbl: and WHEREAS, the officens and directors of the said Bank and the State Comptroller have ever since that time been making every effort to reopen said Bank upon such terms and conditions as will best censerve and safeguard the interest not only of its depositors, but also of the whole community which is served by said bank; and WHEREAS, the said Efumkt State Bank of Clermont, Florida, is now, and for many years has been the depository of the funds of the City of Clermont', Florida, and has, from time to time,_ ma- terially assisted the progress and development of sa~a City by lending it considerable sUms of money,: and , I WHEREASr,-1 Hon. Ernest Amos, Comptroller of the Sta t'e of Florida, has submitted to the directors of sufud Bank a plan whereby said bank may be reopened Bor business, which has been accepted and approved by the directors of said Bank, which said plan has also been subm~tted and fully explained to the City Council of-the City of vlermont by the duly authorized officers of said Bank and is based primarily upon the consent of the depositors that a percentage of their deposits be con- verted from open checking accounts to time certificates of deposit, which concent must be evidenced by a proper written agreement between the B8nk and its depositors, a copy of which said proposed agreement is as follows, to wit: 20% of Deposits to be charged off; Balance to be paid to depositors as follows:- , , I Ca sh. . . . . . . . . . . . . . . . . . ~ . . . .5% September 15, 1926........%% December 15, 1926........5% February 15, 192~........5% May 15, 1927 . . . . . . . .5% November 15, 1927.......10% February 15, 1928.......20% May 15, 1928.......20% November 15, 1928.......25% , 1, WHEREAS, the City Council have given due and careful consideration to said proposed plan, and,believe that its adoption is advantageous to the City of Clermont; NOW, THEREOF, BE IT RESOLVED That the Mayor and City Elerk be, and they are hereby authorized and directed to forthwith execute the said agreement in the name and on behalf of the City of Clermont in the manner prescribebed 'be the laws of this State and the Ordinances of the City of Clermont. Meeting was adjourned to meet again at the call of the president. ~ .Attes~ 1 er . Pres. of Council.