1 Va. Admin. Code § 75-20-30

Current through Register Vol. 41, No. 8, December 2, 2024

Section 1VAC75-20-30 - Collateral requirements for qualified public depositories

A. The Treasury Board shall establish the required collateral that qualified public depositories must pledge to secure public deposit balances in excess of insurance coverage provided by the Federal Deposit Insurance Corporation based on resolutions and guidelines approved by the Treasury Board. These collateral requirements shall be made available for public access. Public depositors and qualified public depositories will be notified of changes to the requirements in advance of their effective dates.

B. In the event a depository's average daily public deposits for the immediately preceding month exceed one-fifth of its average daily total deposits for that month, the required collateral will be in accordance with the Treasury Board's established collateral requirements with the added stipulation that no public deposit be collateralized at less than 75% of the actual public deposits held at the close of business on the last day of the immediately preceding month, or no public deposit be collateralized at less than 75% of the average balance of public deposits for the immediately preceding month, whichever is greater.

C. In the event a depository's average daily public deposits for the immediately preceding month exceed one-fifth of its average daily total deposits and the depository has not been actively engaged in the commercial banking business for at least three years, or in the event that a depository's average daily public deposits for the immediately preceding month exceed one-third of its average daily total deposits, or in the event that a depository has not been actively engaged in the commercial banking business for at least one year, the required collateral will be no less than 100% of the actual public deposits held at the close of business on the last day of the immediately preceding month, or no less than 100% of the average balance of public deposits for the immediately preceding month, whichever is greater.

D. In the event a depository has violated the Security for Public Deposits Act or this chapter, or for other reasons deemed prudent by the Treasury Board, such as the deteriorating financial condition of the depository or the failure to meet compliance requirements established by the Treasury Board pursuant to 1VAC75-20-130, the Treasury Board may increase the depository's collateral requirement.

1 Va. Admin. Code § 75-20-30

Derived from VR640-02 § 3, eff. November 18, 1993; Amended, Virginia Register Volume 39, Issue 18, eff. 7/1/2023.

Statutory Authority: § 2.2-4405 of the Code of Virginia.