a. Duration – The Bank contract will be effective for a period of four (4) years. The Bank contract will begin June 1, 2025,and end May 31, 2029. If a time deposit or certificate of deposit maturity extends beyond the expiration date of the depository contract, the depository will pledge sufficient securities required by law for public funds to Andrews County to provide for the maturity of the time deposit or certificate of deposit. The depository bank will allow a 60-day extension of contract terms in the event that the County must transition to a new bank at the end of the contract period. b. Renegotiations – Section 116.021(b) of the Texas Local Government Code (LGC) specifies that “If the contract is for a four-year term, the contract shall allow the County to establish, on the basis of negotiations with the Bank, new interest rates and financial terms of the contract that will take effect during the final two years of the four-year contract.” c. Option for Two-Year Extension – Upon the agreement by both Andrews County and the Depository Bank, an option to extend the Depository Contract for two years is allowed under Section 116.021(c) of the Texas LGC. “On renewal of the contract, the county may negotiate new interest rates and terms with the bank for the next two years in the same way and subject to the same conditions as provided by Subsection (b).” d. Evaluation Process – Depository Bank – Andrews County will award the Depository Bank Contract based on, but not limited to, the following criteria: Bank’s financial position. Bank’s ability to pledge adequate securities against County funds. Cost of banking services and ability to meet service requirements. Completeness of proposal and agreement to points outlined in the Depository Application. Net rate of return on County funds. However, the Commissioners Court of Andrews County, Texas reserves the right to reject any or all proposals received and to waive any informalities or defects in proposals or to accept such proposals as it deems to be in the best interest of Andrews County. e. Investments Made Outside Depository Bank – Andrews County reserves the right to make investments outside the depository bank in accordance with the Laws of the State of Texas and the Investment Policy of Andrews County and/or as a result of a court order.
