North Lanarkshire Municipal Bank Minutes 21 May 2002

Apologies
Councillors, J Pentland, F Griffin, and J Shaw - Directors

Minutes of previous meeting
The minutes of the meeting held on 6 November 2001 were tabled and unanimously approved.

Review of current investment strategy
A report , distributed prior to the meeting , describing various investment strategies available to the bank, was presented by A Crichton. This report provided a brief outline of each of the strategies and acting on a prudent basis, advised that Option 3 was the preferred option. It was agreed that

The bank invests funds up to the value of £10m in NLC at a fixed rate of interest over five years;
This transaction to be concluded on the 1^st April 2002;
The balance of short-term deposits invested in NLC under the current business arrangement.

Review of interest rates
A report, distributed prior to the meeting, was presented by A Crichton, which outlined proposals to review the current interest rates payable to depositors. The report included information in respect of the current range of balances and the number of accounts. The interest rates had not been reviewed since June 2000. Broadly the proposed new rates involve the reduction of 1% across the lower bands with the introduction of two more bands whereby a cut of 0.75% and 0.50% was proposed. All directors declared an interest in the matter in respect that they had an account with the Municipal Bank. Previous clarification had been sought on this matter which indicated that any such an interest would not bar any director from voting on the matter. However Councillor Murray declined to vote on the matter. Councillor Wilson sought clarification on the expected movement in interest rates in the near future and this was addressed by A Crichton. Councillor Murray expressed concerns as to the mechanisms for changing interest rates and the speed at which they are adjusted to reflect current market conditions. It was agreed that the revised rates be accepted, implemented from the 1^st May 2002 and that the position be reviewed continuously to ensure interest rates remain competitive.

Sponsorship
Directors were informed a sponsorship request had been received from Shotts Highland Games Association in respect of the event to be held on the 1^st June 2002. As in previous years, an award of £2,000 was approved unanimously by the board of directors. Councillor Jones expressed her concerns regarding the policy operated by the bank in sponsoring events and stated that it appeared that year on year it appeared the same events were being allocated. It was agreed that the sponsorship activities of the bank be advertised locally, on the proviso that any party applying, to be successful, must meet the criteria laid out in a previous report submitted to the Directors in July 2001.

Date of next meeting

To be advised

Leisure Clubs 21 May 2002
Stadium Advertising 21 May 2002
Sponsorship Report 21 May 2002
Press Release 21 May 2002
Individual Requests 21 May 2002
Gala Events 21 May 2002
Charitable Organisations 21 May 2002