Effective November 1, 1974, the system shall pay interest on all security deposits
in its possession and so identified on its records. The rate of interest for the period
of November 1, 1974, to the effective date of the ordinance from which this article
is derived shall be six percent simple interest per annum. The rate of interest effective
with the implementation of this article shall be established as follows: The director
of the administrative services department shall immediately establish, and establish
annually thereafter by each October 1, an interest rate based upon the average of
the rates paid on regular savings or passbook accounts at three Lafayette banks. The
rate established shall be within a range of -25 basis points (0.25 percent) of such
average. However, under no circumstances shall the rate of interest paid exceed six
percent per annum. Interest so earned shall be credited to the customer security deposit
account. Interest shall be computed on the principal amount of the security deposit.
Interest shall cease to run at the time of final customer disconnection. No interest
shall be due for periods prior to November 1, 1974.
(City Code 1965, § 23-9.1)
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