Virginia Administrative Code
Title 1 - ADMINISTRATION
Agency 75 - DEPARTMENT OF THE TREASURY
Chapter 20 - VIRGINIA SECURITY FOR PUBLIC DEPOSITS ACT REGULATIONS
Section 1VAC75-20-70 - Valuation of collateral

Universal Citation: 1 VA Admin Code 75-20-70

Current through Register Vol. 41, No. 3, September 23, 2024

A. Each qualified public depository shall value its securities for reporting purposes at current market value as of the close of business on the last day of the immediately preceding month. Weekly, qualified public depositories that have elected the dedicated method of collateralization must additionally report current market values as of the close of business on Friday of the immediately preceding week. At all times the current market value of collateral must be equal to or greater than a depository's required collateral as defined in 1VAC75-20-30 and 1VAC75-20-80. Current market value is defined as the market value of a security priced on a same day basis or no older than one business day. Business day is defined as any day other than a Saturday, Sunday, a legal holiday, or a day in which banking institutions are authorized or required by law or other governmental action to be closed.

B. The Treasury Board may require that certain securities that are difficult-to-value or subject to rapid declines in value or otherwise represent a risk of decrease in value be valued at a rate less than 100% of their market value. Accordingly, this shall apply to all of the following security types: mortgage-backed securities (MBS) and collateralized mortgage obligations (CMO) issued by United States agencies or government-sponsored enterprises (GSE) shall be valued at 80% of their market value; obligations (bonds, notes, and other evidences of indebtedness) of the Commonwealth of Virginia and any Virginia county, city, town, authority, or other public body shall be valued at 90% of their market value; and obligations (bonds, notes, and other evidences of indebtedness) of other states and their municipalities and political subdivisions shall be valued at 80% of their market value. Qualified public depositories shall have six months from July 1, 2023, to adjust their pledged collateral, if necessary.

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

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