Mississippi Administrative Code
Title 38 - Treasurer
Part 1 - Office of the State Treasurer
Chapter 3 - Public Funds Guaranty Pool Rules
Rule 38-1-3.4 - Determination of Collateral Pledge Level

A. Collateral Pledge Level. A qualified public depository shall pledge eligible collateral having a market value not less than the average daily balance of public deposits held by the qualified public depository multiplied by the qualified public depository's collateral pledging level. The collateral pledging level for all qualified public depositories shall be calculated quarterly according to the following schedule:

75% of average daily balance of funds on deposit in the aggregate by the State of Mississippi or any agency or department of the state or by any county, municipality or governmental unit in excess of the Federal Deposit Insurance Corporation insurance limits.

B. Minimum Pledged Collateral. Notwithstanding the average daily balance, a qualified public depository shall maintain a minimum of pledged eligible collateral whose market value is not less than one hundred thousand dollars ($100,000).

C. Temporary Increases in Collateral. A qualified public depository which accepts any public deposit that causes its public deposits to exceed its average daily balance by twenty-five percent (25%) shall be required to pledge additional eligible collateral with the Treasurer within two (2) business days of the deposit. The additional eligible collateral shall be equal to the difference between the actual public deposits and the average daily balance times the applicable collateral pledge level, including any limitations thereto.

The additional eligible collateral shall not be required if deposit(s) causing the increase are withdrawn within the two (2) business days and prior to pledging of the additional collateral. Additional pledged collateral shall be included in required collateral and held by the Treasurer until the next regular monthly report is filed.