HUD Form 51999 General Depository Agreement

General Depository
Agreement

U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing

This Agreement, entered into this __________ day of _______________ , 19____ by and between _________________________
_______________________________________________________________________________________________________________
(herein called the “PHA/IHA”), a duly organized and existing public body corporate and politic of the _______________________
______________________________________ of _____________________________________________________________________
and ____________________________________________________________________________________________________________
(herein called the “Depository”), located at __________________________________________________________________________
_______________________________________________________________________________________________________________
Witnesseth:
Whereas, the Department of Housing and Urban Development (herein called “HUD”) has entered into one or more contracts (herein
called the “Contract” with the PHA/IHA for the purpose of providing financial assistance to develop and operate lower income housing
projects, as authorized by the United States Housing Act of 1937, as amended (42 USC 1437, et seq.); and
Whereas, under the terms of the Contract the PHA/IHA is required to select as depositories of its funds financial institutions whose
deposits or accounts are insured by either — the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund as long as this Agreement is in force and effect.
Now Therefore, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. The deposits and accounts of the Depository shall continue
to be insured by either — the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.
2. All monies deposited by the PHA/IHA with the Depository
shall be credited to the PHA/IHA in a separate interest bearing
deposit or interest bearing accounts, designated

Accounts” (herein the “Accounts”). Any portion of PHA/IHA
Funds not insured by a Federal insurance organization shall be
fully (100%) and continuously collateralized with specific and
identifiable U.S. Government or Agency securities prescribed by
HUD. Such securities shall be pledged and set aside in accordance
with applicable law or Federal regulations. The PHA/IHA shall
have possession of the securities (or the PHA/IHA will take
possession of the securities) or an independent custodian (or an
independent third party) holds the securities on behalf of the PHA/
IHA as a bailee (evidenced by safe keeping receipt and a written
bailment for hire contract) and will be maintained for the full term
of deposit. The Depository may substitute other securities as
collateral to equal or increase the value. If PHA/IHA is an agency
of an Indian tribe, the collateral shall be in United States bonds
and otherwise as may be prescribed for public funds by the United
States Secretary of the Treasury.
3. Except as stated in Paragraph 5, the Depository shall honor
any (a) check or other order to pay from the Accounts, or (b)
directive to purchase investment securities with monies from the
Accounts or to sell securities, if such order or directive is in
Form HUD-52000 and previous editions of this form are obsolete.

writing and signed on behalf of the PHA/IHA by an officer or
member designated by resolution of the Board of Directors of the
PHA/IHA to have such authority. To assist the Depository in its
obligation, the PHA/IHA shall furnish the Depository with a
certified copy of the resolution.
4. Any securities received from the PHA/IHA or purchased by
the Depository with monies from the Accounts shall be considered
to be a part of the Accounts and shall be held by the Depository in
safe-keeping for the PHA/IHA until sold. Interest on such
securities and the proceeds from the sale thereof shall be deposited
in the Account upon receipt.
5. If the Depository received written notice from HUD that no
withdrawals by the PHA/IHA from the Accounts are to be permitted, the Depository shall not honor any check or other order to pay
from the Accounts or directive to purchase or sell securities, or
permit any withdrawals by the PHA/IHA from said Accounts until
the Depository is authorized to do so by written notice from HUD.
6. The Depository is not obligated to be familiar, and shall not
be charged, with knowledge of the provisions of the Contract, and
shall be under no duty to investigate or determine whether any
action taken by either the PHA/IHA or HUD in respect of the
Accounts are consistent with or are authorized by the Contract or
whether either PHA/IHA or HUD is in default under the provisions
of the Contract. The Depository shall be fully justified in
accepting and acting on, without investigation, any certificate or
notice furnished to it pursuant to the provisions of this Agreement
and which the Depository shall in good faith believe to have been
duly authorized and executed on behalf of the party in whose name
the same purports to have been made or executed.
7. The rights and duties of the Depository under this Agreement shall not be transferred or assigned by the Depository
without the prior written approval of the PHA/IHA and HUD.

Page 1 of 2

form HUD-51999 (6/91)
ref. Handbook 7475.1

This Agreement may be terminated by either party hereto upon
thirty days’ written notice to the other party, and HUD. The rights
and duties of the Depository hereunder shall not be transferred or
assigned nor shall this Agreement be terminated during any period
in which the Depository is required to refuse to permit withdrawals from the Accounts as provided in Paragraph 5.

investment by the PHA/IHA. Such securities shall not be
considered to be a part of the Account pursuant to Paragraph 4
hereof but shall be held by the Depository as custodian or trustee
for the PHA/IHA in a separate account established for that purpose
by the Depository (herein the “Securities Account”). The
Securities Account shall be designated:

8. HUD is intended to be a third party beneficiary of this
Agreement and may sue to enforce its provisions and to recover
damages for failure to carry out its terms.
9. The Depository shall promptly notify the PHA/IHA of
crediting or depositing of any monies in the Accounts.

Income or other proceeds from securities held in the Securities
Account shall, as directed by the PHA/IHA, upon receipt, be paid
to or on behalf of the PHA/IHA; provided, however, that such
proceeds shall, to the extent consistent otherwise with the
provisions of this Paragraph, be deposited in the Accounts. If the
Depository receives written notice from HUD pursuant to
Paragraph 5 hereof that no withdrawals by the PHA/IHA from the
Accounts are to be permitted, the Depository shall not honor any
directive from the PHA/IHA to sell securities, or permit any
withdraws by the PHA/IHA, from the Securities Account until the
Depository is authorized to do so by written notice from HUD.
During the pendency of such restrictions on the Accounts and the
Securities Account, the Depository, except as directed in writing
by HUD, shall not remit any payment to the PHA/IHA for the
purpose of limiting the amount of funds in the Account to the
Insured Amount but shall instead purchase securities approved for
investment by the PHA/IHA and hold such securities in the
Securities Account.
( For use only in certain States that have statutes that prohibit
Public Housing Agencies and Indian Housing Authorities from
implementing paragraph 2.)

10. The provisions of this Agreement may not be modified by
either Party without the prior written approval of HUD.
11. Previous General Depository or Savings Depository Agreements, if any, entered into between the Depository and the PHA/
IHA are hereby terminated and all monies and securities of the
PHA/IHA on deposit with or held by the Depositories pursuant to
the terms of said Agreement shall continue to be held for account
of the PHA/IHA pursuant to and in accordance with the provisions
of this Agreement.
12. At no time shall the PHA/IHA Funds in the Accounts be
permitted to exceed the amount insured by Federal deposit
insurance (herein the “Insured Amount”). At any such time as the
amount of funds in the Accounts reach the Insured Amount,
whether by the accrual of interest or otherwise, the Depository
shall promptly, as directed by the PHA/IHA, and in an amount
sufficient to limit the funds in the Accounts to the Insured
Amount, either: (a) remit payment to the PHA/IHA or, (b) on
behalf of the PHA/IHA, purchase securities approved for

In Witness Whereof, the PHA/IHA and the Depository have caused this Agreement to be executed in their respective names and
their respective seal to be impressed hereon and attested as of the date and year first above written.

________________________________________________________
PHA/IHA
(SEAL)
ATTEST:
By______________________________________________________
Chairman
________________________________________________________
Secretary
________________________________________________________
Depository
By________________________________________________________
(SEAL)
ATTEST:

Note: Strike paragraphs 11 and 12 if not applicable.

Form HUD-52000 and previous editions of this form are obsolete.

Page 2 of 2

form HUD-51999 (6/91)
ref. Handbook 7475.1