Current through all regulations passed and filed through September 16, 2024
All financial institutions (FIs)
participating in OPCP shall:
(A) Transmit
the required files to
OPCS every day the federal reserve
is open for
business.
(B)
Report any public
unit (PU) negotiated collateral requirement at an account
level.
(C) Pledge sufficient
collateral when uninsured public deposits are
received.
(1)
The treasurer of state will estimate the federal deposit insurance corporation
insurance (FDIC) coverage amount, which may
deviate from the actual
FDIC limits.
(2) A
FI must address collateral deficiencies in
accordance with the operating policies.
(D) Pledge eligible
collateral to the treasurer of state with a
qualified trustee to secure the FI's public
deposits.
(1) The trustee shall
identify and hold collateral pledged to the treasurer
for the benefit of public units
(PUs) with deposits in the respective
FI.
(2) The trustee shall
hold all collateral pledged to the treasurer in one or more identifiable pooled collateral accounts for each
FI, as specified by the treasurer.
(3) A
FI will pledge collateral to the treasurer
with a trustee as required, and
the trustee will inform the treasurer of all new pledges.
(a) The treasurer
will not accept any statement,
communication, or notice from a
FI as evidence of pledged
collateral.
(b) The treasurer
will only update OPCS records on
receipt of documentation submitted by the trustee.
(E)
Monitor pledged collateral and submit a collateral release
request to the treasurer in advance of the maturity date of the pledged
collateral.
(F) Submit a collateral
release request to the treasurer
in order to have pledged collateral released by the trustee.
(1) A
trustee will only release collateral on the instruction of the treasurer,
and
will not accept requests directly from a
FI.
(2)
Acceptance or denial of a release of collateral request will occur as
determined by the treasurer.
(G)
Not pledge, combine, cross-collateralize, or aggregate pledged collateral in
one pool in OPCP for either another pool in OPCP or for the benefit of any
other
party.
(H) Be
subject to ongoing monitoring for compliance of collateral sufficiency
requirements and file submission
requirements.
(1) If the treasurer
determines a
FI is not in compliance with the operating
policies, collateral sufficiency requirements, or file submission requirements,
then the treasurer may impose a
cushion collateral requirement.
(2) Upon entrance into
OPCS, the cushion collateral requirement will have a default value of zero.
