HUD-52736-A Depository Agreement - Banking Accounts

Approved OMB #: 2577-0218
Exp. 11/30/2022

DEPOSITORY AGREEMENT
U.S. Department of Housing and Urban Development
Office of Public and Indian Housing
Banking Accounts
This Agreement entered into this _____ day of __________________, 20____,
between _________________________________________________________ (herein
called the “Recipient”), [a [federally recognized or state recognized] Indian tribe; an Indian
Housing Authority created under [tribal or state] law; or an entity created under [tribal or
state] law providing for housing authorities or housing entities for Indians]
and __________________________________________________________ (herein called
the “Depository”) located at
______________________________________________________________.
Witnesseth:
Whereas, the United States Department of Housing and Urban Development (herein called
“HUD”) has entered into one or more grant agreements (herein called NAHASDA Grant
Agreement”) with the Recipient for the purpose of funding affordable housing activities
under the Native American Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4101 et seq.) (herein called “NAHASDA”);
Whereas, the Recipient may borrow funds for affordable housing activities which HUD
guarantees under the Title VI of NAHASDA pursuant to a guarantee contract (herein called
“Guarantee Contract”);
Whereas, the Recipient may establish an investment account to invest Indian Housing Block
Grant funds for the purpose of carrying out affordable housing activities under NAHASDA;
Whereas, the Recipient is required to hold funds for investment in an account subject to an
agreement in a form prescribed by HUD;
Whereas, the Recipient may establish and maintain a separate reserve account only for the
purpose of accumulating amounts for administration and planning relating to affordable
housing activities under NAHASDA;
Whereas, the Recipient may invest funds in a reserve account only in Investments prescribed
by HUD subject to an agreement in a form prescribed by HUD;
Whereas, the Recipient must ensure that any interest or dividends earned on funds in a
reserve account that is deemed non-program income in accordance with 24 C.F.R. §
1000.239 are tracked and accounted for separately from the Indian Housing Block Grant
funds deposited in the reserve account;

1
HUD-52736-A (01/2019)

Approved OMB #: 2577-0218
Exp. 11/30/2022

Whereas, the Recipient may only invest in the following (herein collectively called
“Investments prescribed by HUD”): obligations of the United States; obligations issued by
United States Government sponsored agencies; securities that are guaranteed or insured by
the United States; mutual (or other) funds registered with the Securities and Exchange
Commission and which invest only in obligations of the United States or securities that are
guaranteed or insured by the United States; and
Whereas, the Depository desires to perform certain banking services for the Recipient in
accordance with the terms of this Agreement.
Now Therefore, in consideration of the mutual covenants hereinafter set forth, the parties
hereto agree as follows:
1. The Depository shall ensure that its banking accounts are continuously insured by the
Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, or
an insurance organization specifically approved by the Secretary of the U.S. Treasury
Department under Title 31, CFR, Part 226 (each, a “Federal Insurance Organization”).
2. All monies deposited by the Recipient with the Depository shall be credited to the
Recipient in a separate interest bearing deposit or interest bearing accounts, designated:
[enter account name(s) and/or account
number(s)]___________________________________________
_________________________________________________________________________
(herein called the “Accounts”). Any portion of Recipient funds not insured by a Federal
Insurance Organization shall be fully (100%) and continuously collateralized with specific
and identifiable Investments prescribed by HUD. -The Depository agrees, for the purpose of
insuring and guaranteeing any portion of the Recipient’s funds not insured by a Federal
Insurance Organization/SIPC, to pledge and, at all times while in custody of such funds,
maintain the pledge of collateral security of the classes described, and under the terms and
conditions set forth, in paragraph 5 of PIH Notice 96-33, Required HA Cash Management
and Investment Policies and Procedures issued June 30, 1997, and extended on August 2,
2002, indefinitely.
The Depository agrees that, in the event of its failure to pay, when due, the whole or any part
of the funds deposited in the Account(s), or in the event of the failure for any reason of the
Recipient or HUD to receive promptly funds to be transmitted or otherwise handled by the
Depository in the performance of its duties under this Agreement, or in the event that the
Depository shall otherwise violate or fail to perform any of the terms of this agreement, or in
the event of the insolvency of the Depository, or the Depository shall be closed for business
by law or by proper corporate action, or in the event that a receiver, or conservator, or
liquidator, or any other officer shall be appointed for the purpose of terminating the business
of the Depository, HUD, without prior notice or demand, through such agents as it may
designate for the purpose, may forthwith redeem or sell the pledged collateral, and any
addition thereto or substitution therefore, or any part thereof, at either public or private sale
or sales, and apply the proceeds of such redemption or sale or sales, after deducting all
necessary or proper expense of such redemption or sale or sales, to the payment of funds
2
HUD-52736-A (01/2019)

Approved OMB #: 2577-0218
Exp. 11/30/2022

deposited in the Account(s) or the repayment of funds received by the Depository for
transmission or handling, or both, or any other indebtedness of the Depository to HUD by
reason of this Agreement, any surplus remaining from the proceeds of the redemption or sale
or sales of such investments after payment or repayment in full has been made, to be paid to
the Depository.
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 Investments prescribed by HUD with
monies from the Accounts or to sell the investments, if such order or directive is in writing
and signed on behalf of the Recipient by an authorized representative who is designated by
resolution of the governing body of Recipient to have such authority. To assist the
Depository in its obligation, the Recipient shall furnish the Depository with a certified copy
of the resolution.
4. Any investments received for the Recipient 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 safekeeping for the Recipient until sold. Interest or dividends on such
investments and the proceeds from the sale thereof shall be deposited in the Accounts upon
receipt. Where interest or dividends are earned on amounts in reserve accounts, the Recipient
must ensure that such amounts may be tracked and accounted for separately from the Indian
Housing Block Grant funds deposited in the reserve account. Where such funds cannot be
tracked and accounted for separately, such interest and dividends earned on the investment of
funds in reserve accounts must be deposited by the Depository in a separate account
established for that purpose and shall be held by the Depository as custodian or trustee for the
Recipient to ensure that funds with different Federal requirements are not commingled;
5. If the Depository receives written notice from HUD that no withdrawals by the Recipient
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 investments, or permit any
withdrawals by the Recipient from the Accounts until the Depository is authorized to do so
by written notice from HUD. In addition, upon written demand from HUD, the Depository
shall pay to HUD funds from the Accounts, which may be the entire amount in the Accounts.
HUD may only demand funds from the account in accordance with the requirements of 24
CFR §1000.532 or, in the event of default, pursuant to the Guarantee Agreement.
6. The Depository is not obligated to be familiar, and shall not be charged, with knowledge
of the provisions of the NAHASDA Grant Agreement and Guarantee Agreement, and shall
be under no duty to investigate or determine whether any actions taken by either the
Recipient or HUD in respect of the Accounts are consistent with or are authorized by the
NAHASDA Grant Agreement or Guarantee Agreement or whether either the Recipient is in
default or noncompliance with the NAHASDA Grant Agreement or Guarantee Agreement.
The Depository shall be fully justified in accepting and acting on, without investigation, any
certificate, notice, or demand 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.

3
HUD-52736-A (01/2019)

Approved OMB #: 2577-0218
Exp. 11/30/2022

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 Recipient and HUD.
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.
8. HUD is intended to be a third-party beneficiary of this Agreement and certain provisions
to this Agreement are for the benefit of HUD and HUD may sue to enforce its provisions and
to recover damages for any failure to carry out its terms.
9. The Recipient shall submit a fully executed copy of this Agreement to HUD within 30
business days of the Agreement’s execution.
10. The Depository shall promptly notify the Recipient of the deposit or credit of any
monies to the Accounts.
11. The provisions of this Agreement may not be modified by either party without the prior
written approval of HUD.
12. (For use only in those states that have laws prohibiting the Recipient from implementing
paragraph 2.) NOTE: Strike paragraph 11 if not applicable.
At no time shall the Recipient’s funds in the Accounts be permitted to exceed the amount
insured by a Federal Insurance Organization (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 Recipient,
and in an amount sufficient to limit the funds in the Accounts to the Insured Amount, either:
(a) remit payment to the Recipient, or (b) on behalf of the Recipient, purchase Investments
prescribed by HUD. Such investments shall not be considered to be a part of the Accounts
pursuant to paragraph 5 hereof but shall be held by the Depository as custodian or trustee for
the Recipient in a separate account established for that purpose by the Depository (herein the
“Investments Account”).
The Investments Account shall be designated: [enter account name and/or account
number] _____________________________________________________________
_____________________________________________________________________.
Income or other proceeds from investments held in a separate Investments Account shall, as
directed by the Recipient, upon receipt, be paid to or on behalf of the Recipient; provided,
however, that such proceeds shall, to the extent consistent otherwise with the provisions of
this section, be deposited in the Account. If the Depository receives written notice from HUD
pursuant to paragraph 4 hereof that no withdrawals by the Recipient from the Account are to
be permitted, the Depository shall not honor any directive from the Recipient to sell
investments, or permit any withdrawals by the Recipient, from the Investments Account until
4
HUD-52736-A (01/2019)

Approved OMB #: 2577-0218
Exp. 11/30/2022

the Depository is authorized to do so by written notice from HUD. During the pendency of
such restrictions on the Account and the Investments Account, the Depository, except as
directed in writing from HUD, shall not remit any payment to the Recipient for the purpose
of limiting the amount of funds in the Account to the insured amount but shall instead
purchase Investments prescribed by HUD and hold such investments in the Investments
Account.
13. For purposes of notification or submission of this Agreement or other documentation to
HUD, HUD shall be the Area Office of Native American Programs to which the recipient
submitted its Indian Housing Plan pursuant to 24 CFR § 1000.214.

In Witness Whereof, the Recipient 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.
______________________________
Recipient
By: __________________________

Title: __________________________
Authorized representative
[SEAL]
ATTEST:
______________________________
Depository
By: __________________________

Title: __________________________
[SEAL]
ATTEST:

Public reporting burden for the collection of information is estimated to average 15 minutes. This includes the time for collecting,
reviewing, and reporting the data. Response to this request for information is required in order to receive the benefits to be
derived. The information is used to allow Indian Housing Block Grant (IHBG) recipients to invest IHBG funds in eligible
instruments with bankers. The information requested is not confidential, as explained at 5 CFR 1320.8(b)(3). This agency may
not collect this information, and you are not required to complete this form unless it displays a currently valid OMB control
number.

5
HUD-52736-A (01/2019)