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April 29, 1989 • Formerly COMMERCIAL WEST and NORTHWESTERN BANKER • Voi. 174, No. 17 IN THIS ISSUE Role o f M arketing Headline N ew s Compliance =105 0 : =: Jj= O ern Financial Review. I 71 ¿ r o r w c.n =T==s0 m is o ÍÍJ 7"; p j rn-<n3 7T- 77zc following commentary is by Justin L. Moran, an Ann Arbor, Mich.-based management consultant who specializes in community bank strategic planning, marketing and communications. His column appears regularly in Northwest important concepts such as war, peace, nationalism or international relations. But the March/April 1989 essay “ The Role of Marketing” was so excellent and of such direct interest to community bankers that I feel constrained to risk charges of copyright infringement and attempt to extract some of its most sali ent points in this column. It is, without doubt, the best discourse on the subject of marketing that I have read in a great many years. f the life and tim es of Justin Moran ever take me to Canada to live, work or w hatever, The Royal Bank of Canada will have The marketing philosophy o f business first crack at providing any finan says cial services I might need. The reason is that customer satisfaction should quite simple. For more than 25 years, govern a company’s every action. Con the bank has been sending me The sidering how important marketing has Royal Bank Letter without cost or obli become to society, it makes a good social gation. philosophy as well. ... I subscribe to five daily newspapers I f you were to stop five people on the and receive more magazines and news street and ask them what is meant by letters than I can easily count. But none marketing, the odds are that four would of these publications provides me with a say “selling” and the fifth, “advertis more thoughtful and insightful view of ing.” In one way they would all be right; the world we live in than the splendid in another, all wrong. The ultimate aim essays in each issue of The Royal Bank o f marketing is indeed to sell things, and rn iiio c m A Canadian Perspective 05 o o Letter. I ’ve never mentioned The Royal Bank Letter in any of my writings before because it never seems to deal directly with banking or finance. Typically, it presents a philosophical discussion of advertising is employed in attempts to carry sales to their conclusion. But these activities are to marketing what wheels are to a car - essential to the purpose, but inadequate to fulfill it by themselves. .. . (Following a discussion of the ele- Correspondent Banking Services Dennis Earhart "We'd https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MNB Correspondent Banker like to discuss our overlimit credit facilities with your bank ." Together we can accom plish great things. Call us at 3 19 -3 6 8 -4 7 0 0 or 1 -8 0 0 -3 3 2 -5 9 9 1 . Merchants National Bank ■§■ C edar R apids. Iowa 52401 Member F D I C A BANKS OF IOWA BANK V The tailor-made portfolio. The best-fitting suit is one that’s custom-made. And the same is true of a bank’s investment portfolio. It should be designed to fit that bank’s specific needs and managed for continuing strong performance. A correspondent bank that offers portfolio management should provide a number of services. Quality investments, of course. But also asset/liability management. Timely information on market conditions. Reliable data on current rates. And innovative investment ideas. The right correspondent bank to manage your portfolio will see to it that your investment strategies are tailor-made for you. Finding that bank requires that you ask the right questions and get the right information. United Missouri is The Information Bank. Any questions? lb UNITO) MISSOURI BANK M em ber F D IC P.O. Box 4 1 9 2 2 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Kansas City, Missouri 6 4 1 4 1 -6 2 2 6 8 1 6 / 556-7200 P .O .Box 1126 St. Louis, Missouri 6 3 1 8 8 314/ 621-1000 merits of the marketing cycle, product development, market research, pricing, packaging and labeling and distribution, the essay continues) . . . Oddly enough, at least some textbook explanations o f the m arketing cycle omit its fin a l, vital state - ensuring that the customer is happy and is kept happy through servic ing, the fulfillment o f guarantees, and ongoing contact after initial transaction. “ The sale merely consum m ates the courtship; then the marriage begins,’ ’ writes the dean o f American marketing education, Theodore Levitt o f Harvard University. “How good the marriage is depends on how well the relationship is managed by the seller. ” . . . A common symptom o f marketing myo pia is the inability to see beyond the nar rowest conception o f a company’s busi ness. Organizations suffering from it tend to define themselves in terms o f products (“ We are a fertilizer company.) or technology (“ We are a chemical proc essing company.’’) instead o f what they can do fo r their customers (“ We help farmers increase their productivity). . . . A company at the turn o f the century which considered itself a horse carriage maker would have closed down when au tomobiles took over the market. I f it had thought o f itself as being in the peoplemoving business, it would have made a smooth transition from manufacturing carriages to manufacturing automobiles. Persuading people throughout an orga nization that they should keep the cus tomer uppermost in mind may be the toughest selling job m arketing people have ever encountered. It is easy enough to convince a store clerk that his or her job depends on not keeping people waiting; but how do you tell a foreman scrambling to meet production schedules that he or woods with only a little traffic direction she is just as responsible as the direct from your sales force. The customary or salesperson fo r “selling’’ the product, be der o f priority was to conceive a product cause what the foreman does affects the without consulting the sales staff, set a price for it based on production costs, quality. . .. The idea that marketing should be the then hand it over to them with instruc leading preoccupation o f a company in all tions to sell it or else. .. . The ultimate winner in the marketing its parts goes against business tradition, which has always placed a premium on is the consumer. By its nature, marketing doing the main job effectively - the main is concerned with improvements in qual job usually being operations or produc ity and design. It has channeled human tion. As in the case o f the proverbial better ingenuity into innovations in both prod mousetrap, the presumption was that if ucts and services which make everyday you offered something superior, the world Continued on page 10 would beat a path to your door in the DOES YOUR BANK NEED AN INVESTMENT CENTER? Y o u r b e n e fits : • New high net worth customers • Added profit • Reduced deposit loss to competitors • Ability to offer complete financial services For information contact: IN V E S TM E N T 1-800-544-7113 First Dakota Building P.O . Box 2796 Bismarck, ND 58502 or P.O. Box 65697 West Des Moines, IA 50265 Hill N orw est Bank Des Moines, N.A. mumuu Call (515) 245-3131 or toll-free (800) 362-2514 NORWEST BA N KS M e m b e r FD IC Teamwork: one of the reasons we’re first in Iowa. „ Æ Mark Conway COUNTONIt Count on Com m erce for superior capabilities and personal attention to your correspondent banking needs. A combination w e’ve upheld for more than 120 years. Give us a call. 1*800*892*7100 1*800*821*2182 (Outside Missouri) *57/ Commerce Bank o f Kansas City NORTH W ESTERN FINANCIAL REVIEW (ISSN 1042-1254) is published 51 times per year on consecutive Saturdays commencing the first Saturday in January and ending the third Saturday in December (24 issues of a magazine published twice a month, and 27 issues of a newsletter published all other Saturdays) by Financial Communications Inc., 5270 West 84th Street, Suite 480, Bloomington, Minnesota 55437. Telephone (612) 835-5225. Circulation audited by Audit Bureau of Circulation. Second class postage paid at Minneapolis, Minnesota 55401, and additional mailing office. Postmaster: Send address changes to Northwestern Financial Review, 5270 West 84th Street, Suite 480, Bloomington, Minnesota 55437. Subscription Rates: United States, 1 yr. $57.00; Canada, 1 yr. $62.00; Foreign, 1 yr. $ 67.00, single copies $3.00. Absolutely no refunds for early subscription cancellation. N ORTH W ESTERN FINANCIAL REVIEW does not assume responsibility for the writings or statements of others not directly connected with this publication. Reprints available from Financial Communications Inc., 5270 West 84th Street, Suite 480, Bloomington, Minnesota 55437; (612) 835-5225. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis APRIL 29, 1989 3 Headline N ews Senate Approves $ 157 Billion Thrift Bailout Plan The Senate overwhelm ingly endorsed the Bush ad m inistration’s $157 billion thrift bailout plan after chang ing the plan’s capital require ments provision. The revised bill, approved 91-8, would provide $50 bil lion to close or merge insol vent thrifts through the next decade, eliminate permissive accounting standards for S&Ls, and distance the rela tionship between the indus try and its regulators. T he proposed plan has gained notoriety as the larg est bailout in the history of the United States. The $157 billion figure alone is much larger than the bailouts of Chrysler, Lockheed, Conti nental Illinois and New York City combined. Wright Exonerated Of S&L Charges The House Ethics commit tee dismissed charges that Speaker Jim Wright (D-Tex.) improperly influenced thrift regulators on behalf of S&L executives. The committee, h o w ever, unanim ously agreed to bring Wright to trial on 69 violations, includ ing evading outside income limits and accepting improper gifts during the last decade. T h e co m m itte e said Wright’s dealings with the Federal Home Loan Bank Board “ may have been in temperate,’’ but lacked evi dence that he “ exercised un due in flu en ce” with the regulators. Form er thrift regulators have faulted Wright for much of the S&L crisis. Wright’s critics contend he acted on behalf of Texas S&L opera tors when he delayed 1986 accounting technique which allows “ goodw ill” to be counted as capital. All dissenting votes were cast by Democrats, including Sens. Max Baucus, Mont.; K ent Conrad, N .D .; and James Exon and Robert Ker rey, Neb. One change the Senate made was an amendment re quiring thrifts to maintain real capital equal to 1.5 per cent of a sse ts. The Bush proposal would have required thrifts to double their capital to loan ratio to 6 percent from 3 percent by 1991. The plan, however, would have let thrifts meet the require ments through the use of an legislation which would have pumped $15 billion into the Federal Savings and Loan In surance Corp. to close insol vent thrifts. Texas and California, ac cording to Senate Banking committee chairman Donald Riegle (D-Mich.), have ac counted for 70 percent of the $38 billion the government approved last year to aid thrift woes. S&L Deposit Decline Continues Section 89 Changes Proposed A bill which would simplify Internal Revenue Code Sec tion 89 non-discrimination rules for employee benefit plans has been introduced in the House. Dan Rostenkowski (D-Ill.), chairman of the House Ways and Means Committee, has introduced a bill which would completely rewrite the rules adopted in the 1986 tax bill. Under the bill, co-sponsored by the entire committee, em ployers would be required to make available some type of affordable health coverage to 90 p e rce n t of the firm ’s workers and to place limits on the extent to which more favorable coverage is offered to highly compensated em ployees. The bill also would ease the definition of part-time employees. For the fourth consecutive m onth, th rift d ep o sito rs w ithdrew s u b s ta n tia l amounts of money from their institutions, according to the Federal Home Loan Bank Board. Depositors withdrew $9.4 billion more than they depos ited in the nation’s 2 ,9 3 9 th rifts during F eb ru a ry . Since October 1988, thrift withdrawals have totaled $35.4 billion. Treasury Secretary Nicho las Brady predicted the level of withdrawals would decline once President Bush’s thrift bailout plan is approved by Congress. First Interstate Bank We go the extra mile fo r you 1 800 362-1615 - Randy Steig Correspondent Services 4 NORTHWESTERN FINANCIAL REVIEW https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - Ralph Weickel Investment Services Compliance MORE ONBACK-UP WITHHOLDING The following article is the final part in a two-part series looking at the effects of Internal Revenue Service Notice 88-77 regarding backup withholding require ments, and Internal Revenue Code, Sec tion 1.6050H, regarding mortgage inter est reporting. It is reprinted from the Fall 1988 issue o f Bank Accounting and Fi nance. Part one appeared in the April 15, 1989, Update. he mortgage interest report ing provision of the Internal R ev en u e C od e, S e c tio n 6050H, was enacted by the Deficit Reduction Act of 1984 to assist the IRS in verifying taxpayers’ claimed mortgage interest deductions. The IRS requires people who receive in the course of their trade or business $600 or more of mortgage interest from any individual during the calendar year to report such amounts on Form 1098 to the IRs and to the borrower. The temporary mortgage interest re portin g re g u la tio n s, IR S S e c tio n 1.6050H-IT, were released in August 1985 and required an extensive revamp ing of lenders’ databases. These regula tions were unclear in three major areas: the treatment of prepaid interest, lock box arrangements and home equity loans. The final set of mortgage interest T reporting regulations, IR S Section 1.6050H, released in April 1988, clarify these areas. Prepaid Interest and Points The temporary regulations, adopted in 1985, prohibited payors from report ing on Form 1098 points and prepaid in terest in the year of receipt. The tem p o rary re g u la tio n s w ere s ile n t, however, about when such information should be included on Form 1098, if ever. The final regulations answer this question. They prohibit reporting points and require reporting prepaid interest in the year the interest actually accrues. A de minimis exception is provided for prepaid interest accruing 15 days after year-end. A lender may treat interest received during the current calendar year that accrues by Jan. 15 of the next calendar year as interest received dur ing the current calendar year for Form 1098 reporting. This treatment of prepaid interest was implemented despite the financial community’s protests of undue hard- BY WENDY S. SCHONMAN This article also was reprinted recently in a customer newsletter by the accounting firm of Arthur Young. ship. First, the requirement forces fi nancial institutions that cannot segre gate accrued in terest from prepaid interest to invest in costly computer changes to accommodate such informa tion. Second, many borrowers are un aware of IRC Section 461(g), which pro hibits a deduction for prepaid interest in the year of prepayment. Thus, borrow ers frequently deduct prepaid as well as accrued interest on their individual tax returns. However, the vehicle the 1RS uses to match taxpayers’ deductions, Form 1098, reports only accrued inter est. So financial institutions will be placed in the position of tax advisers, explaining the discrepancy to cu s tomers. Lock Boxes The final regulations resolve the question: Who is responsible for com pleting Form 1098 in a lock box arrange ment? In a lock box arrangement, a financial institution collects principal and interest payments on notes payable to a deposi tor and deposits them in the depositor’s account. The depository institution has no knowledge of the type or terms of the note payable or of the underlying se curity. The 1985 temporary regulations addressed the lock box issue tangen- For Cash Letter Processing, Call On The Best https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lincoln In NE: 800-742-7462 Outside NE: 800-228-9175 Omaha In NE: 800-642-9305 ^F irsT ier Banks Lincoln - Omaha FirsTier Bank, N.A., Lincoln and FirsTier Bank, N.A..Omaha, Members FDIC APRIL 2 9 ,1 9 8 9 5 (ANKERS® »ANKERSfl B 1 SM Some special candidates from Robert Half s Banking Division Private B anking Officer Assistant Vice President Looking for a private b anker with excellent credit an alysis sk ills and proven sales abilities? Described by form er supervisor to be intelligent, thorough and conscientious. H as 5 + y ears of bankin g experience with m ost recen t position as a private banking representative in a $400M M ou tstate bank. Ready to move for $ 3 0 K for rig h t Tw in Cities opportunity. NWFR48901 Do you need an experienced bankin g professional for your #2 spot? Our candidate h a s exam ination, loan review and lending m anagem ent experience. Is currently responsible for a $ 15M M portfolio in an ou tstate holding com pany bank. Also h as responsibilities in A/L m anagem ent, b u sin ess development and strateg ic planning. A seasoned ban k er with over 15 y ears of in creasin g responsibilities. Could your b an k use som e additional expertise in your H um an R esou rces departm ent? T h is energetic candidate has experience in employee training, payroll, ben efits adm inistration and corporate com m unication. H as also worked as a teller and as new accou nts coordinator. Can really fit in w here needed and is very open to opportunities in large and sm all in stitutions. NW FR48906 Asking $21K " - H ere’s an all-around in su ran ce pro with over 2 0 years experience as a bank agency m anager. H as been a C.I.C. since 1984. H as sold all lines of in su ran ce including health, life, property, casu alty and hail and * multi-peril. In addition h as clerked at auctions and made lending decisions. NW FR48907 Asking $28K * Earns $32K President Commercial/Agricultural Lender Is your bank in need of a take-charge president who h a s proven abilities in the areas of profitability and credit quality? Is curren tly president of a $40M M out-of-state holding com pany b ank th a t regu larly earn s 1.25% ROA and 20% RO E. Is adept at adopting a sales culture to en su re regu lar loan and deposit grow th. Ready for a new challenge. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Asking $40K Insurance Agency M anager H ere’s an ou tstanding candidate th a t h as large b ank process m anagem ent experience combined with sm aller in stitu tion exposure to all areas of consum er lending and operations. C urrently serves a s a fin an cial m anager with a large holding com pany bank. H as excellent com m unications sk ills and proven m anagem ent ability. Looking for an operations m anagem ent position in the Tw in City m etro area. NW FR48904 NWFR48905 * Asking $45K Operations M anagem ent NW FR48903 Looking for som e spark in your com m ercial area? Our candidate’s background includes form al credit training, collateral auditing and sm all b u sin ess lending. In addition is a con sisten t leader in new b u sin ess development efforts. A goal-oriented b anker who is ready to perform for your bank. H as over eight years local bankin g experience. Hum an Resources Assistant/Generalist Sr Lender NW FR48902 * Asks $65K E conom ists are predicting a solid ru ral economy th is year so now is a good tim e to fill in any gaps in your lending area w ith an experienced ag/commercial lender. T h is outstanding com m unicator h as PC A, F a rm * Credit and com m ercial bankin g experience. Is currently responsible for $ 12M M portfolio in an ou tstate com m ercial bank. W ith over * 15 years in a variety of areas th is pro can do it all! Is also licensed in all in su ran ce lines. A real team player! NW FR48908 Asking $35K ial list of a Commercial Loan M anager Operations Coordinator A top notch professional w ith the perfect blend of credit sk ills and proven busin ess development abilities. W ith over five years of com m ercial lending experience, th is proven producer h as excellen t m anagem ent skills. C urrently m an ages a com m ercial loan division of $30M M in a medium-sized bank. T h is ad m inistrator will serve equally well in eith er cleaning up a problem situ ation or developing new credits. Are you looking for an outgoing operations coordinator w ith both consum er and com m ercial loan processing experience and branch m anagem ent responsibilities? T h is candidate h a s the depth to contribute to any organization. Is challenged by diversity and is looking for good long-term potential. H as PC experience and two y ears of college accounting courses. NW FR48909 Asking $24K N W FR 48916 Cashier Jr Commercial Lender W ith over seven y ears of credit analysis and loan review experience, th is candidate is ready to move into a lending role. H as a keen m astery of cash-flow lending and docum entation. Is involved w ith w orkouts and new cred its from every aspect. H as worked w ith FA ST analysis for three years. H as excellent com m unication sk ills and h as the flexibility needed for a lending position. B .S . degree in Fin an ce. N W FR 48910 Asking $35K W ith over three years of lending experience, th is self-starter understands ag, consum er and light com m ercial loans. Versatile enough to w ork the teller line if needed. A great personality! N W FR 48914 Asking $25K Asking $22K Trust Officer Sr Credit Officer Som e people are ju s t born to be credit ad m inistrators. They know w hat needs to be done and how to get it done. Our candidate h a s over 15 y ears of com m ercial lending experience w ith the la st ten y ears in various positions of in creasin g responsibility w ith a large regional holding company. C urrently serves a s credit adm inistration head for a $70M M portfolio with 9 reports. Is interested in larg er portfolio responsibilities. Are you m issin g a corporate tru st officer on your team ? T h is candidate p ossesses over two years corporate tru st experience along with a JD degree. T ru st adm inistration experience includes investm ent of tru st a ssets, enforcem ent of requ irem ents and tru st product sales. NW FR48915 Earns low $30’s Earns $45K For further information about these candidates contact Paul Gentzkow, Paul Bees or Bill Benson. We also are able to a ss ist you w ith your tem porary h irin g needs. Our banking specialists are ready to work for you now. Call them today! They have successfully placed candidates in banks of all sizes in the seven state area. https://fraser.stlouisfed.org Candidates Federal Reserve Bank of St. Louis NWFR48913 Loan Generalist In five sh ort years, th is am bitious candidate h a s moved from a teller position into a senior in stallm en t lending position in a $30M M bank. H as also developed as an expert in consum er com pliance. P u t th is energy to w ork for your bank! H as the drive to be CEO and is willing to w ork for it! D egree in b u sin ess with superior G.P. A. NW FR48912 Do you need a results-oriented operations m an ager to stream line solutions to budget problem s? T h is seasoned tech nician h as s ix plus years operations experience which includes m anaging the proof, bookkeeping, teller and general ledger areas. T h is versatile candidate can a ss ist in alm ost any area of your bank. Asking $32K Installment Lender N W FR 48911 Asking $42K H MM ' <M > ... j m -i i R O B ER T H A LF 2800 Norwest Center Minneapolis, MN 55402 (612) 339-9001 World's largest banking, accounting and DP placement specialists tially by providing that when interest is received or collected on behalf of an other, the first person receiving or col lecting the interest must report it on Form 1098. In a lock box arrangement, the firstrecipient rule is not a viablq method for processing an accurate Form 1098. The first recipient, by matter of agreement, does not have the information neces sary to complete Form 1098. The final regulations provide a safe harbor excep tion to the first-recipient rule that gives lenders relief in at least one of the two forms of lock box arrangements used by financial institutions. Correspondent banking. R elief is granted for the arrangement commonly referred to as correspondent banking. The safe harbor exception applies when the person in whose behalf the interest is received is engaged in a trade or busi ness and would receive such interest in the course of its trade or business if it received the interest directly. Corres pondent banking usually involves a con tractual agreement between two finan cial institutions, where one institution acts as a depository facility for the other. The depository institution agrees to collect and process payments on be half of the other institution. The deposi tory institution forwards a copy of the payment to the contracting institution, which records information about the borrower, type of loan, and amount of interest. The purpose of this arrange ment is to accelerate the collection of receivables. For many financial institu tions it is a more effective, efficient and less expensive means of collecting de posits. In this type of lock box arrangement, the only information the depository fa cility receives about the borrower is the amount of payment, that is, the check. The depository facility does not know the borrower’s TIN, whether the bor rower is an individual, what the pay ment is for, and what amount, if any, is interest. Under the safe harbor excep tion for correspondent banking, the con tracting institution (the party with the necessary information) is responsible for filing Form 1098. The depository in stitution (the first recipient) is relieved Loan and investment reviews and other management services SW ORDS ASSOCIATES. INC. S A P R O F E S S IO N A L B A N K IN G C O N S U L T A N T S 2 Brush Creek Blvd. Kansas City, MO 64112 (816) 7 5 3 -7 4 4 0 O F F IC E ONCEPTS Designers & Builders of Financial Institutions LTD Committed to your Building and Remodeling Needs Ross Schoonover Vice President P.0. Box 808 • 319 Broadway • Waterloo, Iowa 50704 319-234-1221 t's easier to talk Iowa banking with people who live it — people like Donald H. Jordahl and the cor respondent staff at Bankers Trust. I Call 1-800-362-1688 or 515/245-2424. Bankers' Des Moines, IA 8 NORTHWESTERN FINANCIAL REVIEW https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Donald H. Jordahl Vice President of this obligation. Courtesy lock box. R e lie f is not granted for the second type of lock box arrangement, one conducted as a cour tesy to individual customers. This ar rangement usually entails the collection of loan payments on behalf of a cus tomer, which are then deposited into the customer’s account and processed for collection. The purpose of this ar rangement is to increase the cash flow in the customer’s account by expediting check clearing. Until the final regulations were re leased, the financial institution perform ing this service did not know and had no reason to ask how much of the collected payment is interest. The financial insti tution had no knowledge about what the payment represented, for example, a mortgage, a personal loan, or a business loan. Only the customer had the infor mation necessary to complete Form 1098. Since the safe harbor exception does not encompass the courtesy lock box arrangement, lenders must either collect the information necessary to complete Form 1098 before they agree to conduct a courtesy lock box arrange ment or eliminate the service. Lines of Credit In a complete departure from the temporary regulations, the final regula tions require that interest received on lines of credit and credit card obligations secured primarily by real property be reported on Form 1098. From the IR S’s standpoint, these changes are neces sary for monitoring changes in the law. The Revenue Act of 1987 revised the requirements for interest deductibility. It permits a deduction for qualified resi dence interest, which includes interest on acquisition indebtedness and home equity indebtedness on a taxpayer’s principal or second residence. These changes require institutions to capture information both on mortgage interest and on interest on home equity loans. In some instances, institutions must merge information from two dif ferent departments in the institution: residential lending and consumer lend ing. In addition, 1RS Announcement 87110 s ta te s that beginning in 1988 lenders must report on Form 1098 whether the mortgage was incurred af ter Dec. 31, 1987, for a purpose other than to purchase a personal residence. However, Announcement 88-132 states that the 1RS no longer needs this infor mation, and it is being deleted from Form 1098 for 1989. ■ Classified A ds HELP WANTED HELP WANTED HELP WANTED PARTIAL LISTIN G OF AVAILABLE PO SITIO NS PO SITIO NS AVAILABLE COMMERCIAL LENDER SENIOR LENDER - supervise all lending for $40MM subur Immediate opening for a Com mercial Len d er at Norwest St. Cloud, a $145M M commercial bank. A minimum of 3-5 years of commercial lending experi ence, strong business development, accounting and written/oral communication skills are required. Com petitive salary and benefits. Please send resume and salary requirements in confidence to: J.D . Walker, Norwest Bank St. Cloud, P.O. Box 967, St. Cloud, MN 56301. AN EQUAL OPPORTUNITY EM PLOYER COMMERCIAL/AG LENDER Break away from the pack. This is more than just an other job. $60MM holding company bank needs 4-5 year lender who has worked with mainstreet and mfg loans. College degree and ag skills are plusses. Op portunity to be part of senior management. $35K. SENIOR COMMERCIAL LENDER Only a position like this can take you up the corporate ladder. Cash in on your 6 + years of lending and take charge of your future. If you have strong commercial lending and management skills you can do all this and more. $50K. OPERATIONS We have the solutions to your career needs! Growing $80MM bank needs operations person who can run bookkeeping, teller lines and call reports. Find out for yourself what your 3 + years of bank experience are worth. Don’t miss this chance! $32K. ALL F E E S COMPANY PAID FOR M ORE INFORMATION CONTACT K U RT ROSENCRANTS AT 515-244-4414 ban bank. Strong commercial lending background de sired. $35K COMMERCIAL REAL ESTATE - minimum five yrs. experience. Strong technical skills and ability to develop new busi ness. Major bank. $45K CREDIT ANALYST - degree and 1-2 yrs. experience re quired. Urban bank. $22K COMMERCIAL LOAN - three yrs. commercial lending expe rience and formal credit analysis training needed. $40K TRUST - manage trust dept, of community bank. JD D e gree desired. $30K Resume and salary history requested. All inquiries confidential. CANDIDATESAVAILABLE TOM HAGAN & ASSOCIATES TRUST O F F I C E R - N .E . Iowa, $200 million bank - need a J.D . degree. $30K + P.O. Box 12346/2024 Swift North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970” SENIOR LOAN O F FIC ER -N e e d a degree 10 12 years experience - Iowa location. $40-50K BANK AUD ITOR-Om aha location - need a de gree, bank auditing experience. $20-25K czH o C d zr a n d czdf’i. i. o c ia t ii. ROBERT HALF Dorothy Minister, CPC GUM B ERT EX EC U T IV E EXC H ANG E 9802 Nicholas S t ., Suite 3 70 Omaha, N E 6 8 11 4 402-390-0275 Fax 402-390-0282 Specializing in the Purchasing and Sale of Banks 515-232-0814 405 Main Ames, Iowa 50010 3 1 7 6th Ave., Ste. 700 Des Moines, IA 50309 Donald 515-244-4414 E. Holder, Principal BANKERS AVAILABLE VP/SR. VP LOAN OFFICER BRANCH MANAGER A very warm and personable individual with a great attitude and excellent work credentials. Offers 10 yrs. bank experi ence and good pattern of stability. Strong in lending (primar ily ag and consumer), good with problem loans and collec tions, successful in marketing, adept on computer, and previous operations experience. References include: “ An excellent candidate for #2 spot in mid-sized bank. . . intelli gent and knows his job well. . . self-starter, works hard, and gets the job done without a lot of noise.. .A real asset to the bank and the community.” B .S. Ag Econ. plus state banking schools. $32,000. J-l Four years consumer and ag experience. Initially trained at finance company, worked for FDIC 2 years, handling large number of ag loans. Now employed at large bank as con sumer loan officer in charge of $6 million portfolio. Receives high ratings from references; “ Does a very good jo b . . . ea ger, very hard worker and shows good results, sharp appear ance . . . a team player who will make his employer money.” Majored in Ag Business at ISU. Prefers rural location. $25,000. J-4 Five years with major holding company bank as ag rep and retail banker, past 3 yrs. in charge of $10 million branch. Excellent overall experience in lending (ag, R.E., commer cial, consumer, FmHA & SBA) and operations, plus invest ments. Reference relates: “ Very good performance, wellrounded experience, good at handling personnel problems. Very bright, well-liked by all. Aggressively seeks new busi ness.” B.S. Bus. Admin., numerous AIB courses. $32,000. J-5 BANKING Total of 7 yrs. lending experience. Spent 2 yrs. with FmHA and last 5 yrs. with FCS. Presents very professional image; confident and outgoing personality. Former supervisors say, “ Very productive, dedicated, strong decision-making skills that show good judgment. . . Excellent organizer, gives 110% effort.” BBA Finance (U of I). Prefers IA, MO, IL location. $26,000. J-6 AG LENDER Seven yrs. with a major holding company bank, in charge of $5-$10 million ag, commercial, and consumer loans. Comes highly recommended: “Training and work record are excel lent. One of the best lenders I’ve seen! Common sense and good judgment. . . gives the job his b e st. . . good integrity, excellent personal appearance. I’d hire him back tomor row!” Graduated Cum Laude with B.S. Bus. Admin., A.A. Accounting, Life and Health insurance licenses, plus several R.M.A., A.B.A. and M .B.I. schools. $28,000 minimum. J-2 AG LOAN OFFICER c a r eer ^ qu ality service by experienced p rofessio n a ls 525 Merle Hay Tower Des Moines, Iowa 50310 515-276-1151 SR. LENDER/COMMERCIAL Now in charge of $30 million commercial loans at large mid west bank. Duties include servicing sizeable personal portfo lio as well. Supervises 2 commercial loan officers. Seven yrs. prior experience with major holding company bank, responsi ble for $10 million commercial, consumer, R .E ., and ag loans, plus daily operations. B.S. degree, graduate of com mercial lending school and IA School of Banking. $37,000 up. J-3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jean Eden Sandi Garner 515-276-1151 515-832-1258 AG LOAN OFFICER A seasoned individual with sound experience. Farmed for 10 yrs., then completed 2 yr. ag banking education and went to work as ag lender at local bank. Now ready to advance his career and make a move. Open to relocation in upper mid west rural areas. Three years banking experience. $23,000. J-7 CONSUMER LOAN OFFICER “ A rising star,” states reference. Four yrs. experience in S&L and finance co. includes responsibility for $2-$6 million consumer, R.E. and student loans, business development and supervising staff of 5. B.A. Financial Management (3.2 gpa) plus numerous professional schools. IA Life & A/H in surance licenses. Excellent references: “ Very poised and mature for his age. . . self-motivated, loves his work, suc cessful in calling on dealers and bringing in new accounts. . . A skilled lender with good credit sense.” $25,000. J-8 20% charge on placements. 6-month guarantee. APRIL 29, 1989 9 Classified A ds POSITIONS WANTED CHOOLER In A S S O C IA T E S "S u c c e s s fu l B a n k in g is Q u a lity P e r s o n n e l" POSITIONS AVAILABLE V .P . , $2 0M M , to handle regulation, compliance, lending (ag., r.e., con s.), call report, & budgeting; g reat location; quality ow n e rs h ip ................................................. $30-35,000 V.P., $ 1 00M M + , com mercial lending, p.r. & bus. develo p ment; 1 rated; good community, close to recreational area; top management; top b e n e fits ............................ $30-35,000 V.P., $ 2 0M M independent; within short distance o f top trade center town; area college; good all around lending & wants small town in v o lve m e n t............................ $20-25,000 INSURANCE PRODUCER, small bank with aggressive insurance program ...................................................................$25-30,000 CREDIT ANALYST, primarily ag; tow n o f 4,500; 45 min. to major town, top b enefits....................................... $25-30,000 CREDIT ANALYST, primarily ag; town o f 5,000; 30 min. to major m etro, top b en efits.....................................$25-30,000 AG LENDER/ACCOUNT EXEC., tow n o f 8,000; exc. schools, 45 min. to college; good hunting a r e a ...................... $28-34,000 AG LENDER/ACCOUNT EXEC., service b est o f loan portfolio; originate new business, incentive p ro g ra m . . . .$30-34,000 Experienced Banker (21 years) in financial field de sires position with progressive financial organization. Qualified in all types of lending. Send replies to File #9555 c/o Northwestern Financial Review. (2) NCR 775, 20 pocket proof machines (12) Burroughs teller terminals, (M T 335) (12) Keyboards, (TP 129) Call Pat at (218) 739-4461 EXPERIEN CED BANKER (25 years) qualified in all types of lending, operations, compliance, invest ments, business development, and clean up. Profit oriented. Seeks position with stable financial institu tion. Send replies to File #9559 c/o Northwestern Fi nancial Review. 2 ISC 16 window disc drive workstations. Under ser vice contract while being used. Model #1200. Very reasonable. Call Ed Leipold (612) 227-0669. Please refer to our two pages of highly qualified candidates in the center of this magazine. CALL PAUL GENTZKOW, BILL BENSON OR PAUL B E E S AT (612) 339-9001 R O B E R T H A LF OF M M NESOTA, M C . 2800 Norwest Center Minneapolis, MN 55402 (612) 339-9001 A L L F E E S C O M P A N Y PAID HEAD OF LENDING, $ 5 00 M M , g ood tow n with c o lle g e; comm. & r.e. c r e d i t s ........................................... $70-80,000 DON W. SCHOOLER Plaza Towers 1736 East Sunshine, Suite 406 Springfield, Missouri 65804 (417) 882-2265 HELP WANTED Consumer lender with 3-4 yrs. experience for #2 lend ing position in $15MM branch location in S.Central MN. Ag or comm’l knowledge helpful; college degree required. Opportunity to advance with this growing $62MM bank. Send resume and salary requirements to; Personnel Dept., P.O. Box 249, Hutchinson, MN 55350. For Professional Correspondent Service Call 1-800-622-7262 Main Office - Sixth and Walnut DES MOINES, IOWA 50304 A BANKS OF IOWA BANK Member FDIC Role of Marketing Continued from page 3 life incomparably more convenient than it was years ago. The point overlooked in all the criti cism (of marketing) is that marketing performs a positive social role merely by going about its business, which is to allo cate the flow o f production efficiently throughout the population. To see what happens when this is not done, one need only look at the bare shelves, line-ups and crowded housing in Marxist countries where marketing as we know it does not exist. . . . Any system which puts the ordinary cit izen ’s wants and needs first cannot be all 10 NORTHWESTERN FINANCIAL REVIEW https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKFORSALE A bank in a one bank community in northeast Iowa is for sale. The bank has assets of less than $13.5M M . Interested persons will be required to sign a confiden tiality agreement and submit a letter of representation regarding their financial resources among other mat ters. Persons may indicate their interest by mail to P.O. Box 93572, Des Moines, Iowa 50393. Serving bankers quietly and efficiently. CAPITAL PERSONNEL SERVICE 815 Office Park Rd., Suite 6 West Des Moines, Iowa 50265 515-226-0510 Estate Appraisals Purchase of Collections Sale of Rare Coins Reliable and respected service for over 30 years Used by bankers throughout the midwest Ben E. Marlenee Coins T h e re Js A D iffe re n ce In Banks... Valley National Bank ■§■ FOR SALE JAMES F. MacLEAN Vice President H. PETER DeROSIER Vice President bad; on the contrary, that has been the dream o f idealistic philosophers through out the centuries. In a curious way, a commercial philosophy has achieved what egalitarian political philosophies have sig nally failed to do. . . . Marketing is the heart o f our economic system in the sense that a heart is a pump which circulates a life-giving essence throughout the body. In the broadest terms, a consumer economy lives through exchange. . . . Without marketing to keep the flow o f these exchanges alive, clots would soon occur in the system, with a damaging if not fatal effect on the body politic. One o f the incomplete definitions o f marketing is “the delivery o f a stan dard o f living.’’ When it is doing its job 913 Locust Des Moines, Iowa 50309 515-243-8064 effectively and responsibly, it might be more apt to say that it is the delivery o f a way o f life. I wish that I had been able to say these things as well as the anonymous author of this issue of The Royal Bank Letter. If you would like to read the en tire essay, I would be happy to send you a copy of mine if you drop me a note at 2276 Rivenoak Ct., Ann Arbor, Michi gan 48103. Or you might want to contact The Royal Bank of Canada’s main office in Toronto and ask to be added to the list of fortunate people who regularly re ceive The Royal Bank Letter. Over the years ahead, you’ll be glad that you did. ■ he best source of information for all finan cial institutions in the Upper Midwest is now available in new 1989-90 editions— including separate directories for Iowa and Nebraska! Each directory contains the most current and accurate listing of key execu tives and directors, bank addresses and phone numbers including telefax, and yearend balance sheet figures from December 31, 1988 call reports. Published since 1912, the North western Bank Directories are recognized as the leading choice of banking profes sionals in the eleven state area. That’s because no one provides more valuable information about midwestern banks (and just midwestern banks) at a comparable value. Order your choice of directories today. But act soon. Supplies are limited. For faster service call 612-835-5225 and charge your purchase to VISA or MasterCard. T F a c ts ’n Figures YbuCan Bank On. The NEW 1989-90 Northwestern ' Bank Directories! Send this order form along with your check or money order payable to Financial Communications, Inc. to: 5270 W. 84th Street, Suite * 480, Bloomington, MN 55437. (Please note: the prices shown for the NORTHWESTERN BANK DIRECTORIES are available to paid subscribers of the NORTHWESTERN FINAN CIAL REVIEW, a banking journal. Directory p rices for non-subscribers are higher. Call for details.) ^nkD iredoryofthe UPPER MOA/ESV lOA/A 1989-90 Edition 1989-90 Edition □ Please send me the new 1989-90 edition of: Price Shipping The NORTHWESTERN BANK DIRECTORY of the UPPER MIDWEST $45.00 $2.50 $ The NORTHWESTERN BANK DIRECTORY of IOWA $20.00 $2.50 $ The NORTHWESTERN BANK DIRECTORY of NEBRASKA $15.00 $2.50 $ Title Quantity Total Price $ Minnesota residents add 6% sales tax. $ . including shipping and sales tax if applicable. Make payment to □ Enclosed is my check/money order for $ . Financial Communications, Inc. □ Charge my purchase to □ VISA □ MasterCard. Title Name Company Name City Signature https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Street State, ZIP Card No. Exp. Date Date M unicipal finance MUNICIPAL BOND CALENDAR TIME AMOUNT 1 1 :00a.m . 2,23 5 ,0 0 0 12:00 noon 3,475,000 12:00 noon 1,650,000 1:00 p.m. 1,000,000 ISSUER PIIB’ D NFR May 1-6 Monday Shoreview, MN (G .O. Park Bonds of 1989) Inver Grove Heights, MN (G.O. Water Revenue Bonds, Series 1989A) Inver Grove Heights, MN (G.O. Improvement Bonds, Series 1989B) Lake County, MN (G .O. Capital Improvement Bonds, Series 1989A) Apr. 15 Apr. 15 Apr. 22 Apr. 15 May 8-13 Monday 12:30 p.m. 12,675,000 Tuesday 2 :0 0 p.m. 10:00 a.m. 3,26 0 ,0 0 0 2 9 ,5 10,000 11:00 a.m. 735,000 12:00 noon 16,300,000 12:00 noon 4 ,5 2 5 ,0 0 0 12:00 noon 475,000 Wednesday Anoka County, MN (G .O. Capital Improvement Bonds, Series 1989A) Mankato, MN (G.O. Bonds) Minneapolis, MN ($1,860,000 Improvement Bonds and $27,6 5 0 ,0 0 0 Various Purpose Bonds) Tomah, WI (Water System Mortgage Revenue Bonds of 1989) Minneapolis-Saint Paul Area, MN (G.O. Sew er Bonds, Series 1989A) Woodbury, MN (G.O. Improvement Bonds, Series 1989A) Woodbury, MN (G .O. Water Revenue Bonds, Series 1989B) L E G A L N O TIC E NOTICE OF SPECIAL MANDATORY REDEMPTION TO THE HOLDERS OF CITY OF ST. LOUIS PARK COUNTY OF HENNEPIN STATE OF MINNESOTA RESIDENTIAL MORTGAGE REVENUE BONDS NOTICE IS H EREBY GIVEN, pursuant to the provi sions of the Indenture dated as of December 1, 1980, between the City of St. Louis Park, Hennepin County, Minnesota, and First Trust National Association, as Trustee, that $660,000 principal amount of the follow ing numbered Bonds of this issue have been selected for Redemption for the Special Mandatory Redemp tion on June 1, 1989, (the Redemption Date) at a Re demption Price of 100% of principal amount together with interest accrued to the Redemption Date. Bond Number R-42 REGISTERED BONDS Principal Amount Interest Maturity Redeemed Rate Date 5,000 11.7% Cusip # * 12/01/2011 791770 AQ3 COUPON BONDS Bonds bearing the interest rate of 9.75% maturing 1/89, Cusip* 791770 AG5 in increments of $5,000 numbered as follows: 1 9 8 ,2 2 9 Bonds bearing the interest rate of 9.9% maturing 1/90, Cusip* 791770 AH3 in increments of $5,000 numbered as follows: 2 3 6 ,2 6 7 12/ are 12/ are 12 NORTHWESTERN FINANCIAL REVIEW https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Apr. 22 Apr. 22 Apr. 29 Apr. 22 Apr. 22 Apr. 22 Apr. 22 Bonds bearing the interest rate of 10% maturing 12/1/ 91, Cusip* 791770 AJ9 in increments of $ 5,000 are numbered as follows: 3 1 1 ,3 2 2 Bonds bearing the interest rate of 10.15% maturing 12/1/92, Cusip* 791770 AK6 in increments of $5,000 are numbered as follows: 346, 378 Bonds bearing the interest rate of 10.25% maturing 12/1/93, Cusip* 791770 AL4 in increments of $ 5 ,000 are numbered as follows: 4 1 4 ,4 2 8 Bonds bearing the interest rate of 10.5% maturing 12/ 1/94, Cusip* 791770 AM2 in increments of $5 ,000 are numbered as follows: 494,504 Bonds bearing the interest rate of 10.6% maturing 12/ 1/95, Cusip* 791770 AN0 in increments of $ 5 ,0 0 0 are numbered as follows: 533, 557, 576 Bonds bearing the interest rate of 1 1.7% maturing 12/ 1/2011, Cusip* 791770 AQ3 in increments of $5,000 are numbered as follows: 2224 2967 1744 1089 3091 2252 1122 1759 3104 1772 2297 1140 3142 2382 1144 1790 2411 3153 1854 1153 3155 1894 2426 1159 3162 1954 2442 1165 3273 2479 1960 1181 3323 2497 1214 1993 3328 2508 2002 1227 3351 2520 1234 2012 2562 3373 2014 1254 3386 2563 1264 2036 2038 3402 1283 2585 2594 3411 1308 2051 1359 2059 2601 3415 2064 2641 1360 3429 3432 1373 2078 2647 1441 2085 3467 2680 1484 2088 2697 3479 1508 2100 2747 3558 1530 2112 2750 3565 1548 2767 3569 2116 1572 2117 2794 3576 1579 2136 2820 3600 1625 2169 2835 3603 1633 2192 2948 3605 1649 2197 2954 3613 2205 3655 1666 2956 Payment of the Redemption Price on the Redeemed Bonds will become due and payable upon presentation and surrender thereof on the Redemption Date. From and after the Redemption Date, interest on the Re deemed Bonds shall cease to accrue and be payable. Bonds may be surrendered for payment in the follow ing manner: If by mail: First Trust National Association First Trust Center Coupon Collection Dept. P.O. Box 64111 St. Paul, MN 55164-0111 or by hand: First Bank Minneapolis Safe Deposit Department 120 S. 6th Street Minneapolis, MN 55402 « First Bank St. Paul Convenience Banking 332 Minnesota Street St. Paul, MN 55101 Bonds Redeemed in part only, the City shall and the Trustee shall authenticate and deliver to the holder thereof, a new Bond or Bonds of authorized denomi nations in an aggregate principal amount equal to the unredeemed portion of the Bond surrendered. If you have any questions, please call (612) 223-7900 First Trust Bondholder Relations. Important Notice In compliance with the Interest and Dividend Compli ance Act of 1983 and Broker Reporting Require ments, we are required to withhold 20% of the princi pal amount of your holdings redeemed unless they are provided with your social security number or federal employer identification number, properly certified. This Compliance should be fulfilled through the sub mitting of a W-9 Form which may be obtained at a Bank or other Financial Institution. Dated: April 2 8 ,1 9 8 8 CITY OF ST. LOUIS PARK HENNEPIN COUNTY, MINNESOTA By: First Trust National Association (Formerly First Trust Company of Saint Paul) Trustee * The CUSIP number has been assigned by Standard & Poor’s and is included solely for the convenience of the holders. The Trustee shall not be responsible for the selection or use of the CUSIP number, nor is any representation made as to its correctness indicated in the Redemption Notice. Published in Northwestern Financial Review April 2 9 ,1 9 8 9 * Municipal finance L E G A L N O TIC E L E G A L NO TIC E NOTICE OF CALL FOR REDEMPTION $410,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 1978-2 PORT AUTHORITY OF THE CITY OF SAINT PAUL NOTICE OF CALL FOR REDEMPTION $935,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS OF 1974-2 PORT AUTHORITY OF THE CITY OF SAINT PAUL (NORTHWESTERN FLOORING AND LUMBER COMPANY, TENANT) NOTICE IS H ER E BY GIVEN that by order of the Board of Commissioners of the Port Authority of the City of Saint Paul, Minnesota, there has been called for redemption and prepayment on July 1, 1989, the Outstanding Bonds of the Port Authority of the City of Saint Paul designated as Industrial Development Rev enue Bond, Series 1978-2, dated July 1 ,1 9 7 8 , bearing the serial numbers and having the stated maturity dates, and principal amounts as follows: Maturity July 1 Serial Number Principal Amount $10,000 17-18 1990 $15,000 19-21 1991 22-24 $15,000 1992 $15,000 25-27 1993 $15,000 1994 28-30 $20,000 31-34 1995 $20,000 35-38 1996 $20,000 39-42 1997 $20,000 43-46 1998 $25,000 47-51 1999 $25,000 52-56 2000 57-62 $30,000 2001 $30,000 2002 63-68 $35,000 69-75 2003 $35,000 76-82 2004 The Bonds are being called at a price of par plus inter est accrued to the date of prepayment (on which date all interest on said Bond will cease to accrue) and with out premium. The Holder of each such Bond hereby called for redemption is requested to present the Bond for payment at the American National Bank and Trust Company, in Saint Paul, Minnesota, on or before July 1 ,1 9 8 9 . Important Notice: In compliance with the Interest and Dividend Compliance Act of 1983 and Broker Report ing Requirement, The American National Bank and Trust Company is required to withhold 20% of the principal amount of your holdings redeemed unless they are provided with your social security number or federal employer identification number, properly certi fied. This Compliance should be fulfilled through the submitting of a W-9 Form which may be obtained at a bank or other financial institution. Dated: April 2 9 ,1 9 8 9 . BY ORDER OF TH E BOARD OF COM M ISSIONERS OF TH E PO RT AUTHORITY OF TH E CITY OF SAINT PAUL Perry K. Feders Acting Executive Vice President Additional information may be obtained from Mr. Perry K. Feders, Acting Executive Vice President of the Port Authority of the City of Saint Paul, Suite 1900, 345 S t. P e te r S treet, St. Paul, Minnesota 55102. Telephone number (612) 224-5686. Published in N orthwestern Financial Review April 2 9 ,1 9 8 9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOTICE IS H EREBY GIVEN that by order of the Board of Commissioners of the Port Authority of the City of Saint Paul, Minnesota, there has been called for redemption and prepayment on July 1, 1989, the Outstanding Bonds of the Port Authority of the City of Saint Paul designated as Industrial Development Rev enue Bond of 1974-2, dated July 1, 1974, bearing the serial numbers and having the stated maturity dates, and principal amounts as follows: Maturity July 1 Serial Number Principal Amount $25,000 44-48 1990 49-54 $30,000 1991 $30,000 1992 55-60 $35,000 61-67 1993 $35,000 68-74 1994 $40,000 75-82 1995 $45,000 83-91 1996 $45,000 92-100 1997 $50,000 101-110 1998 $55,000 111-121 1999 122-132 $55,000 2000 133-144 $60,000 2001 $65,000 145-157 2002 $70,000 158-171 2003 $80,000 2004 172-187 The Bonds are being called at a price of par plus inter est accrued to the date of prepayment (on which date all interest on said Bond will cease to accrue) and with out premium. The Holder of each such Bond hereby called for redemption is requested to present the Bond for payment at the American National Bank and Trust Company, in Saint Paul, Minnesota, on or before July 1 ,1 9 8 9 . Important Notice: In compliance with the Interest and Dividend Compliance Act of 1983 and Broker Report ing Requirement, The American National Bank and Trust Company is required to withhold 20% of the principal amount of your holdings redeemed unless they are provided with your social security number or federal employer identification number, properly certi fied. This Compliance should be fulfilled through the submitting of a W-9 Form which may be obtained at a bank or other financial institution. Dated: April 2 9 ,1 9 8 9 . BY ORDER OF TH E BOARD OF COM M ISSIONERS OF TH E PO RT AUTHORITY OF T H E CITY OF SAINT PAUL Perry K . Feders Acting Executive Vice President Additional information may be obtained from Mr. Perry K. Feders, Acting Executive Vice President of the Port Authority of the City of Saint Paul, Suite 1900, 345 St. P eter S treet, St. Paul, Minnesota 55102. Telephone number (612) 224-5686. Published in Northwestern Financial Review April 2 9 ,1 9 8 9 TheUnitedWay If you don’t give,who will? L if e is y o u r m o s t VALUABLE POSSESSION. PASS IT ON. Of all the riches you could leave to your family, the most precious is the gift of life. Your bequest to the American Heart Association assures that priceless legacy by supporting research into heart disease prevention. To learn more about the Planned Giving Program, call us today. It’s the first step in making a memory that lasts beyond a lifetime. W E R E F IG H T IN G F O R \O U R LIFE A m e rican Heart Association This space provided as a public service. APRIL 2 9 ,1 9 8 9 13 municipal finance L E G A L N O TICE NOTICE OF BOND SALE $29,510,000 BOND OFFERING BY THE CITY OF MINNEAPOLIS, MINNESOTA $1,860,000 IMPROVEMENT BONDS $27,650,000 VARIOUS PURPOSE BONDS SEA LED PROPO SALS will be received by the Board of Estimate and Taxation of the City of Minneapolis, Minnesota, in Council Committee Room No. 321 in the City Hall in Minneapolis, Minnesota, on May 9 ,1 9 8 9 HALF A DOZEN WAYS TOEARN AN EARLY RETIRE1. E at high-fat, highcholesterol foods. 2 . Smoke. 3. Ignore your high blood pressure. 4 . Heavily salt every thing you eat. 5. Put on extra weight. 6 . Stop exercising regularly. Follow these steps and you could retire from work, and from life, sooner than you planned. # A m erican Heart A ssociation WERE FIGHTING FOR YOUR LIFE This space provided as a public service. 14 N O RTH W ESTERN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F IN A N C IA L R E V IE W until 10:00 o ’clock A.M . (C .D .T.) at which time and place all proposals will be publicly opened and an nounced for the purchase of $ 1 ,8 6 0 ,0 0 0 Improvement Bonds and $ 2 7,650,000 Various Purpose Bonds of the City. The Bonds will be dated June 1, 1989 and will mature on D ecem ber 1 in the years and in the principal amounts set forth below: Improvement Bonds Various Purpose Bonds $ 2 ,4 0 0 ,0 0 0 in 1990, $155,000 in 1990 $ 2 ,4 8 0 ,0 0 0 in 1991, and 1991, $ 2 ,5 3 0 ,0 0 0 in 1992, $130,000 in 1992, $ 2 ,5 0 0 ,0 0 0 in 1993, $120,000 in 1993, $100,000 in 1994 to 2006, $ 2 ,5 3 0 ,0 0 0 in 1994, $ 1 ,6 6 0 ,0 0 0 in 1995, all years inclusive $ 1 ,6 9 0 ,0 0 0 in 1996, $ 1 ,7 3 0 ,0 0 0 in 1997, $ 1 ,4 7 0 ,0 0 0 in 1998, $ 1 ,5 1 0 ,0 0 0 in 1999, $860,000 in 2000, $920,000 in 2001, $970,000 in 2002, $800,000 in 2003 and 2004, $500,000 in 2005 and 2006, $600,000 in 2007 to 2009, all years inclusive All Bonds maturing in the years 2000 and thereafter shall be subject to redemption and prior payment at the option of the City on D ecem ber 1, 1999 and any interest payment date thereafter at par and accrued interest. Interest will be payable semiannually on June 1 and December 1, in each year, commencing June 1 ,1 9 9 0 . The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the name of Cede & C o ., as nominee of The Depos itory Trust Company, New York, New York (“ D T C ” ). DTC will act as securities depository of the Bonds. Individual purchases will be made in book-entry form only, in the principal amount of $ 5,000 and integral multiples thereof. Purchasers will not receive certifi cates representing their interest in the Bonds pur chased. Principal and interest, payable semiannually on each June 1 and Decem ber 1, beginning June 1, 1990, will be paid to D TC, which will in turn remit such principal and interest to its participants, for sub sequent dispersal to the beneficial owners of the Bonds. The $1,860,000 Improvement Bonds are being sold by the Board of Estimate and Taxation and will be is sued under the City Charter for the purpose of financ ing local street paving, curb and gutter, and certain other improvements. The $27,650,000 Various Purpose Bonds are being is sued to finance the acquisition and improvement of capital improvements in the City as requested by the City Council, Park and Recreation Board and the Li brary Board, as itemized and approved by the Board of Estimate and Taxation on March 2 9 ,1 9 8 9 . Bidders must submit a single bid for the combined se ries. Each proposal must be submitted on the official form of proposal and m ust be a bid of not le s s than $29,510,000 for all of the Bonds. All rates must be in an integral multiple of 1/8 or 1/20 of 1% . All Bonds of the same maturity must bear a single rate of interest from date of issue to maturity, not exceeding the rate of interest specified for Bonds of any later maturity. Each proposal must be enclosed in a sealed envelope and should be addressed to the Board of Estimate and Taxation, Minneapolis, Minnesota, and marked on the outside “ Proposal for $29,5 1 0 ,0 0 0 General Obligation Bonds.” As a condition precedent to the consideration of the proposal, each bidder must enclose with it a certified or cashier’s check drawn upon an incorpo rated bank or trust company to the order of the Min neapolis Finance Officer, for $600,000 as a good faith deposit, which shall be forfeited as liquidated damages in the event the successful bidder fails to comply with the terms of the notice of sale and its bid. The Bonds will be awarded by the Board of Estimate and Taxation to the bidder complying with the term s of sale and offering to purchase the Bonds at the lowest net interest cost (total interest from date of Bonds to stated maturities, less any premium offered). The right is reserved to reject all bids, and any bid not complying with the term s of this notice will be re jected. The right is also reserved to waive, if permit ted by law, any irregularity or informality in any pro posal. When the successful bidder has been ascertained, the good faith deposits will be promptly returned to all persons making the proposal, except the deposit made by such bidder. Delivery of the Bonds to DTC will be made by the City’s Finance Officer within 30 days of the sale date in New York City or any such other place and manner agreed to by the City Finance Officer. The purchaser will be required to pay the balance of the purchase price for the Bonds in immediately available Federal Funds by wire transfer which shall be re ceived at the offices of the bank designated by the City not later than 1:00 P.M ., Central Daylight Savings Time, on the day of settlement. The Bonds of each series will be accompanied by a certificate as to absence of material litigation and the unqualified approving opinion of Faegre & Benson, of Minneapolis, Minnesota, the cost of such legal opin ions to be paid by the City of Minneapolis. The ap proving opinions will recite that the Bonds constitute valid and legally binding general obligations of the City, and that the City has power and is obligated to levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all taxable property within the City without limitation as to rate or amount. The opin ions will further state that interest on the Bonds is not includable in gross income for purposes of Federal and State of Minnesota income taxation (other than Min nesota franchise tax applicable to corporations and fi nancial institutions) under present laws and rulings. Such interest will, however, be taken into account in computing the federal alternative minimum tax arid en vironmental tax applicable to certain corporations and certain other taxes. It is anticipated the CUSIP identification numbers will be assigned to the Bonds. The CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid by the purchaser. The successful bidder at the time of delivery of the Bonds will receive a certificate executed by the City’s Finance Officer and the President of the City Council of the City of Minneapolis to the effect that to the best of the knowledge of such officers the Official State ment issued by the City in connection with the sale of such Bonds, including the financial statem ents distrib uted with such Official Statem ent, does not, and at the time of the sale of the Bonds, did not contain any un true statement of a material fact or omit to state any material fact necessary in order to make the state ments made therein, in the light of the circumstances under which they were made, not misleading. Copies of the Official Statem ent and the official form of proposal will be furnished upon application to JOHN GUNYOU, FINANCE O FFIC E R , 331 CITY HALL, M IN N E A P O L IS , M IN N E SO T A 5 5 4 1 5 , T E L E PHONE (612) 348-2577. By order of the Board of Estim ate and Taxation at a meeting thereof held March 29, 1989. Dated: March 29, 1989 Board of Estimate and Taxation By Jack A. Qvale, Secretary 327M City Hall Minneapolis, Minnesota 55415 Published in Northwestern Financial Review April 29, 1989 V X 80 YEARS STRONG EXPERIENCE! There is no substitute. Th a t’s Right! For EIG H T D EC A D ES W e h a v e b e e n filling the B o nd in g N e e d s of M id w estern Bankers THE REASONS . . . SUPERIOR SERVICE M O S T CO M PETITIV E PREMIUMS REALISTIC UN D ER W R ITIN G PROM PT C L A IM S SERVICE IF Y O U ’RE N O T G E TTIN G THE SAM E FROM YOUR B O N D IN G C O M P A N Y . . . G IVE US A C A L L - Y O U ’LL BE G L A D Y O U DID. THE KANSAS BANKERS SURETY COMPANY RATED A (Excellent) by A.M. Best 1988 Edition D O N A LD M . TO W LE President D A V ID E . A B E N D R O T H Senior Vice President 611 Kansas Avenue P.O. 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