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� , <br /> COLLATERAL AGREEMENT <br /> TREASURER, CITY OF DECATUR <br /> THIS AGREEMENT made and executed this 12th day of July, 1996, by and <br /> among the TREASURER OF THE CITY OF DECATUR (the "CITY"), Central <br /> Illinois Bank MC (the "BANK"), AND LaSalle National Bank (the "DEPOSITORY"). <br /> WITNESSETH: <br /> WHEREAS, the CITY maintains or desires to maintain or continue to maintain <br /> substantial deposits of its funds with the BANK; and <br /> WHEREAS, the BANK desires to obtain such deposits and to provide certain <br /> pledged securities described herein as collateral security for such deposits; <br /> NOW, THEREFORE, in consideration of the foregoing and of the mutual <br /> covenants herein contained, it is hereby agreed as follows: <br /> 1. The BANK represents and warrants that it is the legal and actual owner, free <br /> and clear of all liens and claims, of the securities attached hereto and made a part <br /> hereof (which said securities, or substitutions therefor made pursuant to paragraph 4 <br /> hereof, are hereinafter referred to as the "pledged securities"). <br /> 2. The BANK hereby grants to the CITY a security interest in, and hereby <br /> pledges to the CITY, the pledged securities as collateral for repayment of deposits of <br /> any funds heretofore or hereafter made by the CITY, as follows (which said total <br /> dollar amount from subparagraph (a) below, are hereinafter referred to as the minimum <br /> level of "collateral security"). <br /> a) To the extent that whenever all CITY time and demand deposits taken <br /> collectively exceed $100,000. (NOTE: The terms "time deposits" and "demand <br /> deposits" are defined as said terms are now or hereafter defined in the Federal Deposit <br /> Insurance Corporation Rules and Regulations; "Public Unit Accounts" as set forth in <br /> Section 330.8 (a), (2) and (5) therein). In the event that the CITY withdraws funds <br /> from the BANK, the CITY shall release the aforesaid security interest in the pledged <br /> securities in the dollar amount necessary to reduce the total amount of pledged <br /> securities to the new minimum level of collateral security and will forth�vith take all <br /> action necessary to authorize the DEPOSITORY to release and deliver pledged <br /> securities to the BANK. In the event that the CITY increases its funds deposited with <br /> the BANK, the BANK shall forthwith deliver to the DEPOSITORY additional pledged <br /> securities in the dollar amount necessary to raise the total dollar amount of pledged <br /> t <br />