California Code of Regulations
Title 2 - Administration
Division 4.5 - Local Agency Deposit Security
Chapter 2 - Administrator of Local Agency Security
Subchapter 1 - General Provisions
Article 2 - Definitions
Section 16001.2.1 - Definitions

Universal Citation: 2 CA Code of Regs 16001.2.1

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

Subject to additional definitions contained in this Chapter which are applicable to specific Subchapters, Articles, or Sections thereof, and unless the context otherwise requires, in this Chapter:

(a) "Active deposit" means a deposit that is payable on demand.

(b) "Addition of a security" means a depository's placement of a security into a security pool without a simultaneous withdrawal of a security from such security pool.

(c) "Administrator" means the Administrator of Local Agency Security of the State of California or any person to whom the Administrator delegates the responsibility to act for him in the particular matter.

(d) "Agent of depository" means:

(1) The Federal Home Loan Bank of San Francisco, if it accepts and holds a security that secures a secured local agency deposit; or

(2) A trust company or the trust department of a state or national bank located in this State which accepts and holds a security that secures a secured local agency deposit.

(e) "Business day" means every day except Saturday or a holiday.

(f) "Deposit contract" means a contract for the deposit of moneys belonging to or in the custody of a local agency which the treasurer of such local agency enters into with a depository in accordance with Government Code Section 53649.

(g) "Depository" means a depository as defined in Government Code Sections 53630(c), (h) and (i), and 53630.5.

(h) "Duly authorized," when used with respect to an officer or employee of a depository or of an agent of depository, means an officer or employee who is by name authorized by the board of directors of the depository or of the agent of depository, as the case may be, to perform the function referred to.

(i)

(1) "Eligible security" means any eligible security (non-REN) or eligible security (REN).

(2) "Eligible security (non-REN)" means any of the securities listed in Government Code Section 53651, except for subdivisions (m) and (p). However, "eligible security (non-REN)" does not include any security which the Administrator pursuant to Government Code Section 53661(g) has determined is not qualified to secure a secured local agency deposit.

(3) "Eligible security (REN)" means any promissory note which is secured by a first lien on improved residential real property located in this State and which meets the following requirements:
(A) The unpaid principal balance of the note (i) does not exceed 80 percent of the fair market value of the real property, as determined by proper appraisal or (ii) is insured or guaranteed by the United States or by an agency of the United States;

(B) The note has been outstanding for not less than six months; and

(C) At the time when the note is placed in a security pool, no payment on the note is more than 30 days past due, and at any time after the note has been placed in a security pool, no payment on the note is more than 60 days past due.

However, "eligible security (REN)" does not include any promissory note which is described in Government Code Section 53651.2(b) or which the Administrator pursuant to Government Code Section 53661(g) has determined is not qualified to secure a secured local agency deposit.

(j) "Holiday" means any day which is designated, in whole or in part, as a holiday in Government Code Sections 6700 or 6701; provided, however, that "holiday" in Subchapter 9 of this Chapter shall have the meaning set forth in Section 16009.1.1 of this Chapter.

(k) "Inactive deposit" means any deposit other than an active deposit.

(l) "Local agency" shall have the meaning set forth in Government Code Section 53630(a).

(m) "Local agency deposit" means a deposit which is subject to or made in accordance with the Local Agency Deposit Security Law.

(n) "Local Agency Deposit Security Law" means Article 2 (commencing with Section 53630), Chapter 4, Part 1, Division 2, Title 5 of the Government Code, as the same or any provision thereof may be amended, added, or repealed.

(o) "Market value," when used with respect to an eligible security (REN), means the value determined in accordance with regulations adopted by the State Treasurer under Government Code Section 53651.2(e).

(p) "Minus substitution of securities" means a substitution of securities in which the market value of the security added to a security pool is less than the market value of the security withdrawn from such security pool.

(q) "Plus substitution of securities" means a substitution of securities in which the market value of the security added to a security pool equals or exceeds the market value of the security withdrawn from such security pool.

(r) "Secured local agency deposit" means a local agency deposit less any portion thereof (1) for which the treasurer of the local agency has waived security pursuant to Government Code Section 53653 and which is insured by the Federal Deposit Insurance Corporation, (2) which constitutes uncollected funds, or (iii) which is otherwise not required by law to be secured.

(s)

(1) "Security pool" includes any security pool (non-REN) or security pool (REN) and shall have the following meaning:
(A) In case an agent of depository holds securities for the purpose of securing two or more secured local agency deposits in a depository and pools such securities, such pooled securities shall be deemed to be a security pool.

(B) In case an agent of depository holds securities for the purpose of securing two or more secured local agency deposits in a depository and does not pool such securities, so many of such securities as are held for the purpose of securing each such secured local agency deposit shall be deemed to be a security pool.

(C) In case an agent of depository holds securities for the purpose of securing a single secured local agency deposit in a depository, such securities shall be deemed to be a security pool.

(2) "Security pool (non-REN)" means a security pool which consists of securities (non-REN).

(3) "Security pool (REN)" means a security pool which consists of securities (REN).

(t) "Substitution of securities" means a depository's simultaneous addition of a security to, and withdrawal of security from, a security pool.

(u) "Treasurer" means the treasurer of a local agency or, if a local agency has no treasurer, the officer or employee of such local agency who performs duties with respect to deposit of moneys usually performed by a treasurer.

(v) "Uncollected funds" shall have the meaning set forth in Section 16001.5.13 of this Chapter.

(w) "Withdrawal of a security" means a depository's withdrawal of a security from a security pool without a simultaneous addition of a security to such security pool.

1. Amendment filed 3-2-72 as an emergency; designated effective 3-4-72 (Register 72, No. 10).
2. Certificate of Compliance filed 6-9-72 (Register 72, No. 24).
3. Amendment of subsection (h) filed 10-8-76 as an emergency; effective upon filing (Register 76, No. 41).
4. Certificate of Compliance filed 2-4-77 (Register 77, No. 6).
5. Amendment filed 7-16-80; effective thirtieth day thereafter (Register 80, No. 29).
6. Redesignation of subsections (d)(A)-(B) as (d)(1)-(2), repealer of subsection (e) and subsection relettering, and amendment of newly designated subsections (g), (i)(2), (i)(3)(C), (j), (o) and (r) filed 4-7-97; operative 4-7-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 15).

Note: Authority cited: Section 53661, Government Code. Reference: Article 2, Chapter 4, Part 1, Division 2, Title 5, Government Code.

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