A RESOLUTION AUTHORIZING THE FINANCE OFFICER TO ENTER INTO THE FINISTAR LOCAL GOVERNMENT INVESTMENT INSTRUMENT PROGRAM (2006-12-04/R-7)

WHEREAS, the Town Council has approved a Custodial Agreement among the Finance Officer of the Town of Chapel Hill, Finistar, Inc. (“Finistar”),  and Gateway Bank & Trust Company, 1145 North Road Street, Elizabeth City, North Carolina  27909-3334 (“Fiscal Agent”); and

WHEREAS, the Finance Officer has been authorized and directed by the Governing Board to deposit funds of the Town of Chapel Hill in a custodial account at fiscal agent for disbursement and deposit in North Carolina financial institutions, the deposits of which are insured by funds of the Federal Deposit Insurance Corporation (“FDIC”) and which are participating banks (as defined in the Custodial Agreement), as provided in the Custodial Agreement;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the fiscal agent, a North Carolina chartered, commercial bank the deposits of which are insured by funds of the FDIC, be and hereby is designated as an official depository of the Town of Chapel Hill.

BE IT FURTHER RESOLVED that each Participating Bank, the name and address of which is listed on Attachment “A”, be and hereby is designated as an official depository of the Town of Chapel Hill, such list being deemed incorporated by reference into this resolution for the purpose of making deposits in accordance with this agreement with Finistar, Inc.

BE IT FURTHER RESOLVED that the Finance Officer shall report the fiscal agent and each participating bank on the List as required by GS 159-33 and 20 NCAC 7.

This the 4^th day of December, 2006.