The Florida Senate

280.01  Short title.

280.02  Definitions.

280.03  Public deposits to be secured; prohibitions; exemptions.

280.04  Collateral for public deposits; general provisions.

280.05  Powers and duties of the Treasurer.

280.051  Grounds for suspension or disqualification of a qualified public depository.

280.052  Order of suspension or disqualification; procedure.

280.053  Period of suspension or disqualification; obligations during period; reinstatement.

280.054  Administrative penalty in lieu of suspension or disqualification.

280.055  Cease and desist order; corrective order; administrative penalty.

280.06  Penalty for violation of law, rule, or order to cease and desist or other lawful order.

280.07  Mutual responsibility.

280.08  Procedure for payment of losses.

280.085  Notice to claimants.

280.09  Public Deposits Trust Fund.

280.10  Effect of merger or acquisition; change of name or address.

280.11  Withdrawal from public deposits program; return of pledged collateral.

280.13  Collateral eligible for pledge by banks and savings associations.

280.16  Requirements of qualified public depositories; confidentiality.

280.17  Requirements for public depositors; notice to public depositors and governmental units; loss of protection.

280.18  Protection of public depositors; liability of the state.

280.19  Rules.

280.01  Short title.--This chapter may be cited as the "Florida Security for Public Deposits Act."

History.--s. 3, ch. 81-285.

280.02  Definitions.--As used in this chapter, the term:

(1)  "Average daily balance" means the average daily balance of public deposits held during the reported month. The average daily balance must be determined by totaling, by account, the daily balances held by the depositor and then dividing the total by the number of calendar days in the month. Deposit insurance is then deducted from each account balance and the resulting amounts are totaled to obtain the average daily balance.

(2)  "Average monthly balance" means the average monthly balance of public deposits held, before deducting deposit insurance, by the depository during any 12 calendar months. The average monthly balance of the previous 12 calendar months must be determined by adding the average daily balance before deducting deposit insurance for the reported month and the average daily balances before deducting deposit insurance for the 11 months preceding that month and dividing the total by 12.

(3)  "Capital account" means total equity capital, as defined on the balance-sheet portion of the Consolidated Reports of Condition and Income (call report) or the Thrift Financial Report, less intangible assets, as submitted to the regulatory banking authority.

(4)  "Collateral-pledging level," for qualified public depositories, means the percentage of collateral required to be pledged as provided in s. 280.04.

(5)  "Current month" means the month immediately following the month for which the monthly report is due from qualified public depositories.

(6)  "Custodian" means the Treasurer or any bank, savings association, or trust company that:

(a)  Is organized and existing under the laws of this state, any other state, or the United States;

(b)  Has executed all forms required under this chapter or any rule adopted hereunder;

(c)  Agrees to be subject to the jurisdiction of the courts of this state, or of courts of the United States which are located within this state, for the purpose of any litigation arising out of this chapter; and

(d)  Has been approved by the Treasurer to act as a custodian.

(7)  "Default or insolvency" includes, without limitation, the failure or refusal of a qualified public depository to pay any check or warrant drawn upon sufficient and collected funds by any public depositor or to return any deposit on demand or at maturity together with interest as agreed; the issuance of an order by any supervisory authority restraining such depository from making payments of deposit liabilities; or the appointment of a receiver for such depository.

(8)  "Effective date of notice of withdrawal or order of discontinuance" pursuant to s. 280.11(3) means that date which is set out as such in any notice of withdrawal or order of discontinuance from the Treasurer.

(9)  "Eligible collateral" means securities as designated in s. 280.13.

(10)  "Financial institution" means, including, but not limited to, an association, bank, brokerage firm, credit union, industrial savings bank, savings and loan association, trust company, or other type of financial institution organized under the laws of this state or any other state of the United States and doing business in this state or any other state, in the general nature of the business conducted by banks and savings associations.

(11)  "Governmental unit" means the state or any county, school district, community college district, special district, metropolitan government, or municipality, including any agency, board, bureau, commission, and institution of any of such entities, or any court.

(12)  "Loss to public depositors" means loss of all principal and all interest or other earnings on the principal accrued or accruing as of the date the qualified public depository was declared in default or insolvent.

(13)  "Previous month" means the month or months immediately preceding the month for which a monthly report is due from qualified public depositories.

(14)  "Public deposit" means the moneys of the state or of any county, school district, community college district, special district, metropolitan government, or municipality, including agencies, boards, bureaus, commissions, and institutions of any of the foregoing, or of any court, and includes the moneys of all county officers, including constitutional officers, that are placed on deposit in a bank or savings association and for which the bank or savings association is required to maintain reserves, including, but not limited to, time deposit accounts, demand deposit accounts, and certificates of deposit. All certificates of deposit, whether negotiable or nonnegotiable, shall be considered deposits and shall be subject to the provisions of this chapter. Moneys used in repurchase or reverse repurchase operations are investments and are not public deposits as defined in this subsection.

(15)  "Public depositor" means the Treasurer or other chief financial officer or designee responsible for handling public deposits.

(16)  "Public deposits program" means the administration of this chapter by or on behalf of the Treasurer.

(17)  "Qualified public depository" means any bank, savings bank, or savings association that:

(a)  Is organized and exists under the laws of the United States, the laws of this state or any other state or territory of the United States.

(b)  Has its principal place of business in this state or has a branch office in this state which is authorized under the laws of this state or of the United States to receive deposits in this state.

(c)  Has deposit insurance under the provision of the Federal Deposit Insurance Act, as amended, 12 U.S.C. ss. 1811 et seq.

(d)  Has procedures and practices for accurate identification, classification, reporting, and collateralization of public deposits.

(e)  Meets all the requirements of this chapter.

(f)  Has been designated by the Treasurer as a qualified public depository.

(18)  "Reported month" means the month for which a monthly report is due from qualified public depositories.

(19)  "Required collateral" of a qualified public depository means eligible collateral having a market value equal to or in excess of the amount required to be pledged pursuant to s. 280.04 as computed and reported monthly or when requested by the Treasurer.

(20)  "Treasurer" means the Treasurer of the State of Florida.

History.--s. 3, ch. 81-285; s. 7, ch. 83-122; s. 1, ch. 84-216; s. 1, ch. 85-259; s. 1, ch. 86-84; s. 1, ch. 87-409; s. 1, ch. 88-185; s. 5, ch. 90-357; s. 10, ch. 91-244; s. 4, ch. 96-216; s. 1, ch. 97-30; s. 11, ch. 98-409.

280.03  Public deposits to be secured; prohibitions; exemptions.--

(1)(a)  All public deposits shall be secured as provided in this chapter when public depositors comply with the requirements of this chapter.

(b)  Public deposits shall be made in a qualified public depository unless exempted by law.

(2)  Public funds shall not be deposited directly or indirectly in negotiable certificates of deposit.

(3)  The following are exempt from the requirements of, and protection under, this chapter:

(a)  Public deposits deposited in a bank or savings association by a trust department or trust company which are fully secured under trust business laws.

(b)  Moneys of the System Trust Fund, as defined in s. 121.021(36).

(c)  Public deposits held outside the country.

(d)  Wire transfers and transfers of funds solely for the purpose of paying registrars and paying agents.

(e)  Public deposits which are fully secured under federal regulations.

History.--s. 3, ch. 81-285; s. 8, ch. 83-122; s. 2, ch. 85-259; s. 55, ch. 86-152; s. 4, ch. 86-236; s. 2, ch. 87-409; s. 6, ch. 90-357; s. 2, ch. 93-75; s. 5, ch. 96-216; s. 17, ch. 97-30; s. 12, ch. 98-409.

280.04  Collateral for public deposits; general provisions.--

(1)  Every qualified public depository shall deposit with the Treasurer eligible collateral equal to or in excess of the required collateral of the depository to be held subject to his or her order. The Treasurer, by rule, shall establish minimum required collateral pledging levels and shall notify each qualified public depository of its required pledging level. Each qualified public depository shall calculate the amount of its required collateral based upon any one or any combination of the following formulas:

(a)  The greater of the average daily balance of public deposits multiplied by the depository's minimum required collateral pledging level, or 25 percent of the average monthly balance of public deposits, unless otherwise required by paragraph (b), paragraph (c), or paragraph (d).

(b)  One hundred twenty-five percent of the average daily balance of public deposits in excess of capital accounts.

(c)  One hundred twenty-five percent of the average daily balance of public deposits if the qualified public depository:

1.  Has been established for less than 3 years;

2.  Has experienced decreases in its capital accounts; or

3.  Has an overall financial condition which is deteriorating.

(d)  One hundred twenty-five percent of the average daily balance of public deposits in excess of 20 percent of the total average monthly balances of public deposits held by all qualified public depositories. The Treasurer shall determine the total average monthly balances of public deposits held during the immediately preceding 12-month period. That 12-month average amount must be disseminated to the qualified public depositories at such time and in such manner as the Treasurer determines appropriate.

(2)  With the approval of the Treasurer, a qualified public depository may deposit eligible collateral with a custodian subject to order of the Treasurer.

(a)  If eligible collateral consisting of registered definitive securities is deposited, and the securities are held by the Treasurer or other custodian and are in the name of the qualified public depository, the Treasurer may require the qualified public depository owning the securities to execute and deliver to the Treasurer a separate certified power of attorney or bond power or other bond assignment form required by the bond agent or bond trustee authorizing the Treasurer to transfer ownership of such securities for the purposes provided in this chapter. A certified copy of a corporate resolution or other resolution adopted by the qualified public depository's governing body authorizing the execution of the power of attorney or bond power or other bond assignment form for each issue of security must be delivered to the Treasurer with the certified power of attorney, bond power, or bond assignment.

(b)  If eligible collateral, consisting of registered definitive securities, is deposited and the securities are held by a custodian other than the Treasurer and are in the name of the custodian or in the name of a nominee, the Treasurer may require the custodian to execute and deliver to the Treasurer a separate certified power of attorney or bond power or other bond assignment form required by the bond agent or bond trustee authorizing the Treasurer to transfer ownership of such securities for the purposes provided in this chapter. A certified copy of a corporate resolution or other resolution adopted by the custodian's governing body authorizing the execution of the power of attorney or bond power or other bond assignment form for each issue of security must be delivered to the Treasurer with the certified power of attorney, bond power, or bond assignment.

(c)  A qualified public depository may not accept any public deposit that would increase its average daily balance for the current month by 25 percent over the average daily balance for the previously reported month unless it deposits or has on deposit additional required collateral to secure such increase within 48 hours of the deposit.

(d)  A qualified public depository may not accept or retain any public deposit which is required to be secured unless it has deposited eligible collateral equal to its required collateral pursuant to this chapter.

(3)  For reporting purposes, each qualified public depository shall value its collateral at market price as of the close of business on the last banking day in the reported month, or as of a date specified by rule of the Treasurer, except that any material decline in value between such day and the date of mailing the monthly report to the Treasurer shall be considered and used for reporting purposes.

(4)  Unless the Treasurer has officially notified the qualified public depository that a substitution may not be made, a substitution of collateral may be made by the qualified public depository at any time if the market value of the securities substituted is equal to or greater than the market value of the securities withdrawn. At the time of making a substitution, the depository shall simultaneously submit a request for the substitution, upon a form approved by the Treasurer, to the custodian of the securities and to the Treasurer.

(5)  Except in cases of substitution as provided in subsection (4), a qualified public depository may not withdraw collateral previously pledged without the prior approval of the Treasurer.

(6)  A custodian other than the Treasurer holding securities as collateral for a qualified public depository shall not permit the depository to withdraw the collateral without the prior written approval of the Treasurer, except in cases of substitution as provided in subsection (4).

(7)  A qualified public depository that violates subsection (5) or a custodian that violates subsection (6) is subject to the penalties provided in s. 280.054(3).

History.--s. 3, ch. 81-285; s. 9, ch. 83-122; s. 132, ch. 83-217; s. 3, ch. 85-259; s. 2, ch. 86-84; s. 3, ch. 87-409; s. 4, ch. 88-185; s. 7, ch. 90-357; s. 11, ch. 91-244; s. 188, ch. 95-148; s. 6, ch. 96-216; s. 13, ch. 98-409.

280.05  Powers and duties of the Treasurer.--In fulfilling the requirements of this act, the Treasurer has the power to:

(1)  Establish criteria, based on the overall financial condition of the participant and applicants, as may be necessary, to protect the integrity of the public deposits program, to:

(a)  Refuse entry into the program by an applicant;

(b)  Order discontinuance of participation in the program by a qualified public depository;

(c)  Restrict the total amount of public deposits a depository may hold;

(d)  Establish collateral-pledging levels based on qualitative and quantitative standards; and

(e)  Restrict substitutions of collateral subject to the approval of the Treasurer.

(2)  Appoint a six-member advisory committee to review and recommend criteria to be used by the Treasurer for purposes stated in subsection (1) in order to protect public deposits and the depositories in the program. Each member selected to serve on the advisory committee must be a representative of his or her industry. Advisory committee members must represent active qualified public depositories, not in the process of withdrawing from the public deposits program, in compliance with all applicable rules, regulations, and reporting requirements of this chapter. Members must possess knowledge, skill, and experience in one or more of the following areas:

(a)  Financial analysis;

(b)  Trend analysis;

(c)  Accounting;

(d)  Banking;

(e)  Risk management; or

(f)  Investment management.

Members' terms shall be for 4 years. Any person appointed to fill a vacancy on the advisory committee may serve only for the remainder of the unexpired term. Any member is eligible for reappointment and shall serve until a successor qualifies. The advisory committee shall elect a chair and vice chair and shall also designate a secretary who need not be a member of the advisory committee. The secretary shall keep a record of the proceedings of the advisory committee and shall be the custodian of all printed materials filed with or by the advisory committee. Notwithstanding the existence of vacancies on the advisory committee, a majority of the members constitutes a quorum. The advisory committee shall not take official action in the absence of a quorum. Each member may name a designee to serve on the advisory committee on behalf of the member. However, any designee so named must meet the qualifications required of the selected member and be approved by the Treasurer. The advisory committee shall convene as needed.

(3)  Establish goals and objectives and provide other data as may be necessary to assist the advisory committee established under subsection (2) in developing standards for the program.

(4)  Review, implement, monitor, evaluate, and modify, as needed, all or any part of the standards and policies recommended by an advisory committee.

(5)  Perform financial analysis of any qualified public depository as needed.

(6)  Require such collateral, or increase the collateral-pledging level, of any qualified public depository as may be necessary to administer the provisions of this chapter and to protect the integrity of the public deposits program.

(7)  Establish a minimum amount of required collateral as the Treasurer deems necessary to provide for the contingent liability pool.

(8)  Decline to accept, or reduce the reported value of, collateral as circumstances may require in order to ensure the pledging of sufficient marketable collateral to meet the purposes of this chapter.

(9)  Maintain perpetual inventory of pledged collateral and perform monthly market valuations and quality ratings.

(10)  Monitor and confirm, as often as deemed necessary by the Treasurer, the pledged collateral held by third party custodians.

(11)  Perfect interest in pledged collateral by having pledged securities moved into an account established in the Treasurer's name. This action shall be taken at the discretion of the Treasurer.

(12)  Furnish written notice to custodians of collateral to hold interest and principal payments made on securities held as collateral and to deposit or transfer such payments pursuant to the Treasurer's instructions.

(13)  Release collateral held in the Treasurer's name, subject to sale and transfer of funds directly from the custodian to public depositors of a withdrawing depository.

(14)  Sell securities for the purpose of paying losses to public depositors not covered by deposit insurance.

(15)  Transfer funds directly from the custodian to public depositors or the receiver in order to facilitate prompt payment of claims.

(16)  Require the filing of the following reports which the Treasurer shall process as provided:

(a)  Qualified public depository monthly reports and schedules. The Treasurer shall review the reports of each qualified public depository for material changes in capital accounts or changes in name, address, or type of institution; record the average daily balances of public deposits held; and monitor the collateral-pledging levels and required collateral.

(b)  Quarterly regulatory reports from qualified public depositories. The Treasurer shall analyze qualified public depositories ranked in the lowest category based on established financial condition criteria.

(c)  Qualified public depository annual reports and public depositor annual reports. The Treasurer shall compare public deposit information reported by qualified public depositories and public depositors. Such comparison shall be conducted for qualified public depositories which are ranked in the lowest category based on established financial condition criteria of record on September 30. Additional comparison processes may be performed as public deposits program resources permit.

(d)  Any related documents, reports, records, or other information deemed necessary by the Treasurer in order to ascertain compliance with this chapter.

(17)  Verify the reports of any qualified public depository relating to public deposits it holds when necessary to protect the integrity of the public deposits program.

(18)  Confirm public deposits, to the extent possible under current law, when needed.

(19)  Require at his or her discretion the filing of any information or forms required under this chapter to be by electronic data transmission. Such filings of information or forms shall have the same enforceability as a signed writing.

(20)  Suspend or disqualify or disqualify after suspension any qualified public depository that has violated any of the provisions of this chapter or of rules adopted hereunder.

(a)  Any qualified public depository that is suspended or disqualified pursuant to this subsection is subject to the provisions of s. 280.11(2) governing withdrawal from the public deposits program and return of pledged collateral. Any suspension shall not exceed a period of 6 months. Any qualified public depository which has been disqualified may not reapply for qualification until after the expiration of 1 year from the date of the final order of disqualification or the final disposition of any appeal taken therefrom.

(b)  In lieu of suspension or disqualification, impose an administrative penalty upon the qualified public depository as provided in s. 280.054.

(c)  If the Treasurer has reason to believe that any qualified public depository or any other financial institution holding public deposits is or has been violating any of the provisions of this chapter or of rules adopted hereunder, he or she may issue to the qualified public depository or other financial institution an order to cease and desist from the violation or to correct the condition giving rise to or resulting from the violation. If any qualified public depository or other financial institution violates a cease-and-desist or corrective order, the Treasurer may impose an administrative penalty upon the qualified public depository or other financial institution as provided in s. 280.054 or s. 280.055. In addition to the administrative penalty, the Treasurer may suspend or disqualify any qualified public depository for violation of any order issued pursuant to this paragraph.

History.--s. 3, ch. 81-285; s. 10, ch. 83-122; s. 4, ch. 85-259; s. 5, ch. 87-409; ss. 5, 14, ch. 88-185; s. 8, ch. 90-357; s. 12, ch. 91-244; s. 5, ch. 91-429; s. 189, ch. 95-148; s. 7, ch. 96-216; s. 14, ch. 98-409.

280.051  Grounds for suspension or disqualification of a qualified public depository.--A qualified public depository may be suspended or disqualified or both if the Treasurer determines that the qualified public depository has:

(1)  Violated any of the provisions of this chapter or any rule adopted by the Treasurer pursuant to this chapter.

(2)  Submitted reports containing inaccurate or incomplete information regarding public deposits or the securities pledged as collateral for such deposits, capital accounts, or the calculation of required collateral.

(3)  Failed to pledge sufficient collateral to cover public deposits.

(4)  Grossly misstated the market value of the securities pledged as collateral.

(5)  Failed to pay any administrative penalty.

(6)  Failed to furnish the Treasurer with prompt and accurate information, or failed to allow inspection and verification of any information, dealing with public deposits or dealing with the exact status of its capital accounts, or any other financial information that the Treasurer determines necessary to verify compliance with this chapter or any rule adopted pursuant to this chapter.

(7)  Failed to furnish the Treasurer, when the Treasurer requested, with a power of attorney or bond power or other bond assignment form required by the bond agent, bond trustee, or other transferor for each issue of registered certificated securities pledged.

(8)  Failed to furnish any agreement, report, form, or other information required to be filed pursuant to s. 280.16, or when requested by the Treasurer.

(9)  Submitted reports signed by an unauthorized individual.

(10)  Submitted reports without a certified or verified signature, or both, if required by law.

(11)  Released a security without notice or approval.

(12)  Failed to execute or have the custodian execute a public depository pledge agreement prior to using a custodian.

(13)  Failed to give notification as required by s. 280.10.

History.--s. 6, ch. 87-409; s. 6, ch. 88-185; s. 13, ch. 91-244; s. 8, ch. 96-216.

280.052  Order of suspension or disqualification; procedure.--

(1)  The suspension or disqualification of a bank or savings association as a qualified public depository must be by order of the Treasurer and must be mailed to the qualified public depository by registered or certified mail.

(2)  The Treasurer shall notify, by first-class mail, all public depositors that have complied with s. 280.17 of any such disqualification or suspension.

(3)  The procedures for suspension or disqualification shall be as set forth in chapter 120 and in the rules of the Treasurer adopted pursuant to this section.

(4)  Whenever the Treasurer determines that an immediate danger to the public health, safety, or welfare exists, the Treasurer may take any appropriate action available to her or him under the provisions of chapter 120.

History.--s. 7, ch. 87-409; s. 14, ch. 91-244; s. 190, ch. 95-148; s. 9, ch. 96-216.

280.053  Period of suspension or disqualification; obligations during period; reinstatement.--

(1)(a)  The Treasurer may suspend a qualified public depository for any period that is fixed in the order of suspension, not exceeding 6 months. For the purposes of this section and ss. 280.051 and 280.052, the effective date of suspension or disqualification is that date which is set out as such in any order of suspension or disqualification.

(b)  During the period of suspension, the contingent liability, required collateral, and reporting requirements of the suspended public depository remain in force under the same conditions as if the suspended depository had remained qualified.

(c)  Upon expiration of the suspension period, the bank or savings association may, by order of the Treasurer, be reinstated as a qualified public depository, unless the cause of the suspension has not been corrected or the bank or savings association is otherwise not in compliance with this chapter or any rule adopted pursuant to this chapter.

(2)(a)  A qualified public depository may be disqualified for a period of time not less than 1 year to be fixed in the order of disqualification.

(b)  During the period of disqualification, the contingent liability, required collateral, and reporting requirements of the disqualified public depository remain in force under the same conditions as if the disqualified depository had remained qualified.

(c)  Upon expiration of the disqualification period, the bank or savings association may reapply for qualification as a qualified public depository. If a disqualified bank or savings association is purchased or otherwise acquired by new owners, it may reapply to the Treasurer to be a qualified public depository prior to the expiration date of the disqualification period. Redesignation as a qualified public depository may occur only after the Treasurer has determined that all requirements for holding public deposits under the law have been met.

History.--s. 8, ch. 87-409; s. 15, ch. 91-244.

280.054  Administrative penalty in lieu of suspension or disqualification.--

(1)  If the Treasurer finds that one or more grounds exist for the suspension or disqualification of a qualified public depository, the Treasurer may, in lieu of suspension or disqualification, impose an administrative penalty upon the qualified public depository.

(a)  With respect to any nonwillful violation, such penalty may not exceed $250 for each violation, exclusive of any restitution found to be due. If a qualified public depository discovers a nonwillful violation, the qualified public depository shall correct the violation; and, if restitution is due, the qualified public depository shall make restitution upon the order of the Treasurer and shall pay interest on such amount at the legal rate from the date of the violation. Each day a violation continues constitutes a separate violation.

(b)  With respect to any knowing and willful violation of a lawful order or rule, the Treasurer may impose a penalty upon the qualified public depository in an amount not exceeding $1,000 for each violation. If restitution is due, the qualified public depository shall make restitution upon the order of the Treasurer and shall pay interest on such amount at the legal rate. Each day a violation continues constitutes a separate violation.

(2)  The failure of a qualified public depository to make restitution when due as required under this section constitutes a willful violation of this chapter. However, if a qualified public depository in good faith is uncertain whether any restitution is due or as to the amount of restitution due, it shall promptly notify the Treasurer of the circumstances. The failure to make restitution pending a determination of whether restitution is due or the amount of restitution due does not constitute a violation of this chapter.

(3)  A qualified public depository that violates s. 280.04(5) or a custodian that violates s. 280.04(6) is subject to an administrative penalty in an amount not exceeding the greater of $1,000 or 10 percent of the amount of withdrawal, not exceeding $10,000.

History.--s. 9, ch. 87-409.

280.055  Cease and desist order; corrective order; administrative penalty.--

(1)  The Treasurer may issue a cease and desist order and a corrective order upon determining that:

(a)  A qualified public depository has requested and obtained a release of pledged collateral without approval of the Treasurer;

(b)  A bank, savings association, or other financial institution is holding public deposits without a certificate of qualification issued by the Treasurer;

(c)  A qualified public depository pledges unacceptable collateral;

(d)  A custodian has released pledged collateral without approval of the Treasurer;

(e)  A qualified public depository or a custodian has not furnished to the Treasurer, when the Treasurer requested, a power of attorney or bond power or bond assignment form required by the bond agent or bond trustee for each issue of registered certificated securities pledged and registered in the name, or nominee name, of the qualified public depository or custodian; or

(f)  A qualified public depository; a bank, savings association, or other financial institution; or a custodian has committed any other violation of this chapter or any rule adopted pursuant to this chapter that the Treasurer determines may be remedied by a cease and desist order or corrective order.

(2)  Any qualified public depository or other bank, savings association, or financial institution or custodian that violates a cease and desist order or corrective order of the Treasurer is subject to an administrative penalty not exceeding $1,000 for each violation of the order. Each day the violation of the order continues constitutes a separate violation.

History.--s. 10, ch. 87-409; s. 7, ch. 88-185.

280.06  Penalty for violation of law, rule, or order to cease and desist or other lawful order.--

(1)  The violation of any provision of this chapter, or any order or rule of the Treasurer, or any order to cease and desist or other lawful order is a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.

(2)  It is a felony of the third degree, punishable as provided in s. 775.082 or s. 775.083, to knowingly and willfully give false information on any form made under oath and filed pursuant to this chapter with the intent to mislead the Treasurer in the administration or enforcement of this chapter.

(3)  No action lies against the state, any state agency or instrumentality, or the Public Deposits Trust Fund for the submission of any false or fraudulent information, or for any misrepresentation made or given, by any qualified public depository or other financial institution or any officer, employee, or agent thereof, nor shall the same constitute any defense in law or in equity to payment of any assessment under this chapter.

History.--s. 11, ch. 87-409; s. 16, ch. 91-244.

280.07  Mutual responsibility.--Any bank or savings association that is designated as a qualified public depository and that is not insolvent shall guarantee public depositors against loss caused by the default or insolvency of other qualified public depositories. Each qualified public depository shall execute a form prescribed by the Treasurer for such guarantee which shall be approved by the board of directors and shall become an official record of the institution.

History.--s. 3, ch. 81-285; s. 12, ch. 87-409; s. 15, ch. 98-409.

280.08  Procedure for payment of losses.--When the Treasurer determines that a default or insolvency has occurred, he or she shall provide notice as required in s. 280.085(1) and implement the following procedures:

(1)  The Treasurer, in cooperation with the Department of Banking and Finance or the receiver of the qualified public depository in default, shall ascertain the amount of funds of each public depositor on deposit at such depository and the amount of deposit insurance applicable to such deposits.

(2)  The potential loss to public depositors shall be calculated by compiling claims received from such depositors. The Treasurer shall validate claims on public deposit accounts which meet the requirements of s. 280.17 and are confirmed as provided in subsection (1).

(3)(a)  The loss to public depositors shall be satisfied, insofar as possible, first through any applicable deposit insurance and then through the sale of securities pledged or deposited by the defaulting depository. The Treasurer may assess qualified public depositories as provided in paragraph (b) for the total loss if the sale of securities cannot be accomplished within 7 business days.

(b)  The Treasurer shall provide coverage of any remaining loss by assessment against the other qualified public depositories. The Treasurer shall determine such assessment for each qualified public depository by multiplying the total amount of any remaining loss to all public depositors by a percentage which represents the average monthly balance of public deposits held by each qualified public depository during the previous 12 months divided by the total average monthly balances of public deposits held by all qualified public depositories, excluding the defaulting depository, during the same period. The assessment calculation shall be computed to six decimal places.

(4)  Each qualified public depository shall pay its assessment to the Treasurer within 7 business days after it receives notice of the assessment. If a depository fails to pay its assessment when due, the Treasurer shall satisfy the assessment by selling securities pledged by that depository.

(5)  The Treasurer shall distribute the funds to the public depositors of the qualified public depository in default according to their validated claims. The Treasurer, at his or her discretion, may make partial payments to public depositors that have experienced a loss of public funds which payments are critical to the immediate operations of the public entity. The public depositor requesting partial payment of a claim shall provide the Treasurer with written documentation justifying the need for partial payment.

(6)  Public depositors receiving payment under the provisions of this section shall assign to the Treasurer any interest they may have in funds that may subsequently be made available to the qualified public depository in default. If the qualified public depository in default or its receiver provides the funds to the Treasurer, the Treasurer shall distribute the funds, plus all accrued interest which has accumulated from the investment of the funds, if any, to the depositories which paid assessments on the same pro rata basis as the assessments were paid.

(7)  Expenses incurred by the Treasurer in connection with a default or insolvency which are not normally incurred by the Treasurer in the administration of this act must be paid out of the proceeds from the sale of pledged collateral.

History.--s. 3, ch. 81-285; s. 5, ch. 85-259; s. 13, ch. 87-409; s. 8, ch. 88-185; s. 191, ch. 95-148; s. 10, ch. 96-216; s. 16, ch. 98-409; s. 18, ch. 99-155.

280.085  Notice to claimants.--

(1)  Upon determining the default or insolvency of a qualified public depository, the Treasurer shall notify, by first-class mail, all public depositors that have complied with s. 280.17 of such default or insolvency. The notice shall direct all public depositors having claims or demands against the Public Deposits Trust Fund occasioned by the default or insolvency to file their claims with the Treasurer within 30 days after the date of the notice.

(2)  No claim against the Public Deposits Trust Fund is binding on the fund unless presented within 30 days after the date of the notice.

(3)  This section does not affect any proceeding to:

(a)  Enforce any real property mortgage, chattel mortgage, security interest, or other lien on property of a qualified public depository that is in default or insolvency; or

(b)  Establish liability of a qualified public depository that is in default or insolvency to the limits of any federal or other casualty insurance protection.

History.--s. 14, ch. 87-409; s. 17, ch. 91-244.

280.09  Public Deposits Trust Fund.--

(1)  In order to facilitate the administration of this chapter, there is created the Public Deposits Trust Fund, hereafter in this section designated "the fund." The proceeds from the sale of securities pledged as collateral or from any assessment pursuant to s. 280.08 shall be deposited into the fund. Any administrative penalty collected pursuant to this chapter shall be deposited into the Treasurer's Administrative and Investment Trust Fund.

(2)  The Treasurer is authorized to pay any losses to public depositors from the fund, and there are hereby appropriated from the fund such sums as may be necessary from time to time to pay the losses. The term "losses," for purposes of this chapter, shall also include losses of interest or other accumulations to the public depositor as a result of penalties for early withdrawal required by Depository Institution Deregulatory Commission Regulations or applicable successor federal laws or regulations because of suspension or disqualification of a qualified public depository by the Treasurer pursuant to s. 280.05(20) or because of withdrawal from the public deposits program pursuant to s. 280.11. In that event, the Treasurer is authorized to assess against the suspended, disqualified, or withdrawing public depository, in addition to any amount authorized by any other provision of this chapter, an administrative penalty equal to the amount of the early withdrawal penalty and to pay that amount over to the public depositor as reimbursement for such loss. Any money in the fund estimated not to be needed for immediate cash requirements shall be invested pursuant to s. 18.125.

History.--s. 11, ch. 83-122; s. 6, ch. 85-259; s. 4, ch. 86-84; s. 17, ch. 87-331; s. 15, ch. 87-409; s. 9, ch. 88-185; s. 18, ch. 91-244; s. 11, ch. 96-216; s. 39, ch. 99-13.

280.10  Effect of merger or acquisition; change of name or address.--

(1)  In the event a qualified public depository is merged into, acquired by, or consolidated with a bank or savings association that is not a qualified public depository, the resulting institution shall become a qualified public depository, and the contingent liability of the former institution shall be a liability of the resulting institution. Within 30 days after the effective date of the merger, acquisition, or consolidation, the resulting institution shall execute in its own name and deliver to the Treasurer the contingent liability agreement required by s. 280.07, and all information and documentation as may be required for participation in the public deposits program. If the resulting institution chooses not to remain a qualified public depository, or does not meet the requirements to become a qualified public depository, such institution shall comply with the procedures for withdrawal from the program as provided in s. 280.11.

(2)  A qualified public depository which sells or disposes of its branches to an institution that is not a qualified public depository, and such branches continue to hold public deposits, shall be responsible for and continue to collateralize and report such public deposits until the purchasing institution becomes a qualified public depository or the deposits are returned to the public unit. The qualified public depository shall notify the Treasurer of any acquisition of its branches on its next monthly report after the final approval by the appropriate regulator if the acquisition includes public deposits.

(3)  The qualified public depository shall notify the Treasurer of any acquisition or merger on its next monthly report after the final approval of the acquisition or merger by its appropriate regulator.

(4)  Collateral subject to a depository pledge agreement may not be released by the Treasurer or the custodian until the assumed liability is evidenced by the deposit of collateral pursuant to the depository pledge agreement of the successor entity. The reporting requirement and pledge of collateral will remain in force until the Treasurer determines that the liability no longer exists. The surviving or new qualified public depository shall be responsible and liable for all of the liabilities and obligations of each qualified public depository merged with or acquired by it.

(5)  Each qualified public depository shall report any change of name and address to the Treasurer on a form provided by the Treasurer regardless of whether the name change is a result of an acquisition or merger. Notification of such change must be made on its next monthly report.

History.--s. 12, ch. 83-122; s. 16, ch. 87-409; s. 9, ch. 90-357; s. 19, ch. 91-244; s. 12, ch. 96-216.

280.11  Withdrawal from public deposits program; return of pledged collateral.--

(1)  A qualified public depository may withdraw from the public deposits program by giving written notice to the Treasurer. The contingent liability, required collateral, and reporting requirements of the depository withdrawing from the program shall continue for a period of 12 months after the effective date of the withdrawal, except that the filing of reports may no longer be required when the average monthly balance of public deposits is equal to zero. Notice of withdrawal shall be mailed or delivered in sufficient time to be received by the Treasurer at least 30 days before the effective date of withdrawal. The Treasurer shall timely publish the withdrawal notice in the Florida Administrative Weekly which shall constitute notice to all depositors. The withdrawing depository shall not receive or retain public deposits after the effective date of the withdrawal until such time as it again becomes a qualified public depository. The Treasurer shall, upon request, return to the depository that portion of the collateral pledged that is in excess of the required collateral as reported on the current public depository monthly report. Losses of interest or other accumulations, if any, because of withdrawal under this section shall be assessed and paid as provided in s. 280.09(2).

(2)  A qualified public depository which has been disqualified pursuant to s. 280.051 shall not receive or retain public deposits after the effective date of the disqualification. Notice of and procedures for disqualification shall be made in accordance with ss. 280.052 and 280.053. The Treasurer shall, upon request, return to the depository that portion of the collateral pledged that is in excess of the required collateral as reported on the current public depository monthly report. Losses of interest or other accumulation, if any, because of disqualification shall be paid as provided in s. 280.09(2).

(3)  A qualified public depository which is required to withdraw from the public deposits program pursuant to s. 280.05(1)(b) shall not receive or retain public deposits after the effective date of withdrawal. The contingent liability, required collateral, and reporting requirements of the withdrawing depository shall continue until the effective date of withdrawal. Notice of withdrawal (order of discontinuance) from the Treasurer shall be mailed to the qualified public depository by registered or certified mail. Penalties incurred because of withdrawal from the public deposits program shall be the responsibility of the withdrawing depository.

History.--s. 3, ch. 81-285; s. 13, ch. 83-122; s. 5, ch. 86-84; s. 17, ch. 87-409; s. 10, ch. 88-185; s. 10, ch. 90-357; s. 20, ch. 91-244; s. 13, ch. 96-216; s. 40, ch. 99-13.

280.13  Collateral eligible for pledge by banks and savings associations.--

(1)  Securities eligible to be pledged as collateral by banks and savings associations shall be limited to:

(a)  Direct obligations of the United States Government.

(b)  Obligations of any federal agency that are fully guaranteed as to payment of principal and interest by the United States Government.

(c)  Obligations of the following federal agencies:

1.  Farm credit banks.

2.  Federal land banks.

3.  The Federal Home Loan Bank and its district banks, including time deposits.

4.  Federal intermediate credit banks.

5.  The Federal Home Loan Mortgage Corporation.

6.  The Federal National Mortgage Association.

7.  Obligations guaranteed by the Government National Mortgage Association.

(d)  General obligations of a state of the United States, or of Puerto Rico, or of a political subdivision or municipality thereof.

(e)  Obligations issued by the Florida State Board of Education under authority of the State Constitution or applicable statutes.

(f)  Tax anticipation certificates or warrants of counties or municipalities having maturities not exceeding 1 year.

(g)  Public housing authority obligations.

(h)  Revenue bonds or certificates of a state of the United States or of a political subdivision or municipality thereof.

(i)  Corporate bonds of any corporation that is not an affiliate or subsidiary of the qualified public depository.

(2)  In addition to the securities listed in subsection (1), the Treasurer may, in his or her discretion, allow the pledge of the following types of securities. The Treasurer shall, by rule, define any restrictions, specific criteria, or circumstances for which these instruments will be acceptable.

(a)  Securities of, or other interests in, any open-end management investment company registered under the Investment Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended from time to time, provided the portfolio of such investment company is limited to direct obligations of the United States Government and to repurchase agreements fully collateralized by such direct obligations of the United States Government and provided such investment company takes delivery of such collateral either directly or through an authorized custodian.

(b)  Collateralized Mortgage Obligations.

(c)  Real Estate Mortgage Investment Conduits.

(d)  Certificates of deposit.

(3)  Except as to obligations issued by or with respect to which payment of interest and principal is guaranteed by the United States Government or obligations of federal agencies listed in subsection (1), the debt obligations mentioned in this section shall be rated in one of the four highest classifications by an established, nationally recognized investment rating service.

(4)  To be eligible as collateral under this section, all debt obligations shall be interest bearing or accruing.

(5)  The Treasurer may disapprove any security that does not meet the requirements of this section or any rule adopted pursuant to this section or any security for which no current market price can be obtained from a nationally recognized source deemed acceptable to the Treasurer.

History.--s. 3, ch. 81-285; s. 14, ch. 83-122; s. 133, ch. 83-217; s. 18, ch. 87-409; s. 7, ch. 88-171; s. 11, ch. 90-357; s. 21, ch. 91-244; s. 192, ch. 95-148; s. 14, ch. 96-216.

280.16  Requirements of qualified public depositories; confidentiality.--

(1)  In addition to any other requirements specified in this chapter, qualified public depositories shall:

(a)  Beginning July 1, 1998, take the following actions for each public deposit account:

1.  Identify the account as a "Florida public deposit" on the deposit account record with the name of the public depositor or provide a unique code for the account for such designation.

2.  When the form prescribed by the Treasurer for acknowledgment of receipt of each public deposit account is presented to the qualified public depository by the public depositor opening an account, the qualified public depository shall execute and return the completed form to the public depositor.

3.  When the acknowledgment of receipt form is presented to the qualified public depository by the public depositor due to a change of account name, account number, or qualified public depository name on an existing public deposit account, the qualified public depository shall execute and return the completed form to the public depositor within 45 calendar days after such presentation.

4.  When the acknowledgment of receipt form is presented to the qualified public depository by the public depositor on an account existing before July 1, 1998, the qualified public depository shall execute and return the completed form to the public depositor within 45 calendar days after such presentation.

(b)  Within 15 days after the end of each calendar month, or when requested by the Treasurer, submit to the Treasurer a written report, under oath, indicating the average daily balance of all public deposits held by it during the reported month, required collateral, a detailed schedule of all securities pledged as collateral, selected financial information, and any other information that the Treasurer determines necessary to administer this chapter.

(c)  Provide to each public depositor annually, not later than October 30, the following information on all open accounts identified as a "Florida public deposit" for that public depositor as of September 30, to be used for confirmation purposes: the federal employer identification number of the qualified public depository, the name on the deposit account record, the federal employer identification number on the deposit account record, and the account number, account type, and actual account balance on deposit. Any discrepancy found in the confirmation process shall be reconciled before November 30.

(d)  Submit to the Treasurer annually, not later than November 30, a report of all public deposits held for the credit of all public depositors at the close of business on September 30. Such annual report shall consist of public deposit information in a report format prescribed by the Treasurer. The manner of required filing may be as a signed writing or electronic data transmission, at the discretion of the Treasurer.

(e)  Submit to the Treasurer not later than the date required to be filed with the federal agency:

1.  A copy of the quarterly Consolidated Reports of Condition and Income, and any amended reports, required by the Federal Deposit Insurance Act, 12 U.S.C. ss. 1811 et seq., if such depository is a bank; or

2.  A copy of the Thrift Financial Report, and any amended reports, required to be filed with the Office of Thrift Supervision if such depository is a savings and loan association.

(2)  The following forms must be made under oath:

(a)  The agreement of contingent liability.

(b)  The public depository pledge agreement.

(3)  Any information contained in a report of a qualified public depository required under this chapter or any rule adopted under this chapter, together with any information required of a financial institution that is not a qualified public depository, shall, if made confidential by any law of the United States or of this state, be considered confidential and exempt from the provisions of s. 119.07(1) and not subject to dissemination to anyone other than the Treasurer under the provisions of this chapter; however, it is the responsibility of each qualified public depository and each financial institution from which information is required to inform the Treasurer of information that is confidential and the law providing for the confidentiality of that information, and the Treasurer does not have a duty to inquire into whether information is confidential.

History.--s. 3, ch. 81-285; s. 16, ch. 83-122; s. 7, ch. 85-259; s. 6, ch. 86-84; s. 20, ch. 87-409; s. 11, ch. 88-185; s. 1, ch. 89-265; s. 23, ch. 91-244; s. 15, ch. 96-216; s. 129, ch. 96-406; s. 17, ch. 98-409.

280.17  Requirements for public depositors; notice to public depositors and governmental units; loss of protection.--In addition to any other requirement specified in this chapter, public depositors shall comply with the following:

(1)(a)  Each official custodian of moneys that meet the definition of a public deposit under s. 280.02 shall ensure such moneys are placed in a qualified public depository unless the moneys are exempt under the laws of this state.

(b)  Each depositor, asserting that moneys meet the definition of a public deposit provided in s. 280.02 and are not exempt under the laws of this state, is responsible for any research or defense required to support such assertion.

(2)  Beginning July 1, 1998, each public depositor shall take the following actions for each public deposit account:

(a)  Ensure that the name of the public depositor is on the account or certificate or other form provided to the public depositor by the qualified public depository in a manner sufficient to identify that the account is a Florida public deposit.

(b)  Execute a form prescribed by the Treasurer for identification of each public deposit account and obtain acknowledgment of receipt on the form from the qualified public depository at the time of opening the account. Such public deposit identification and acknowledgment form shall be replaced with a current form as required in subsection (3). A public deposit account existing before July 1, 1998, must have a form completed before September 30, 1998.

(c)  Maintain the current public deposit identification and acknowledgment form as a valuable record. Such form is mandatory for filing a claim with the Treasurer upon default or insolvency of a qualified public depository.

(3)  Each public depositor shall review the Treasurer's published list of qualified public depositories and ascertain the status of depositories used. A public depositor shall, for status changes of depositories:

(a)  Execute a replacement public deposit identification and acknowledgment form, as described in subsection (2), for each public deposit account when there is a merger, acquisition, name change, or other event which changes the account name, account number, or name of the qualified public depository.

(b)  Move and close public deposit accounts when an institution is not included in the authorized list of qualified public depositories or is shown as withdrawing.

(4)  Whenever public deposits are in a qualified public depository that has been declared to be in default or insolvent, each public depositor shall:

(a)  Notify the Treasurer immediately by telecommunication after receiving notice of the default or insolvency from the receiver of the depository with subsequent written confirmation and a copy of the notice.

(b)  Submit to the Treasurer for each public deposit, within 30 days after the date of official notification from the Treasurer, the following:

1.  A claim form and agreement, as prescribed by the Treasurer, executed under oath, accompanied by proof of authority to execute the form on behalf of the public depositor.

2.  A completed public deposit identification and acknowledgment form, as described in subsection (2).

3.  Evidence of the insurance afforded the deposit pursuant to the Federal Deposit Insurance Act.

(5)  Each public depositor shall confirm annually that public deposit information as of the close of business on September 30 has been provided by each qualified public depository and is in agreement with public depositor records. Such confirmation shall include the federal employer identification number of the qualified public depository, the name on the deposit account record, the federal employer identification number on the deposit account record, and the account number, account type, and actual account balance on deposit. Public depositors shall request such confirmation information from qualified public depositories on or before the fifth calendar day of October and shall allow until October 31 to receive such information. Any discrepancy found in the confirmation process shall be reconciled before November 30.

(6)  Each public depositor shall submit, not later than November 30, an annual report to the Treasurer which shall include:

(a)  The official name, mailing address, and federal employer identification number of the public depositor.

(b)  Verification that confirmation of public deposit information as of September 30, as described in subsection (5), has been completed.

(c)  Public deposit information in a report format prescribed by the Treasurer. The manner of required filing may be as a signed writing or electronic data transmission, at the discretion of the Treasurer.

(d)  Confirmation that a current public deposit identification and acknowledgment form, as described in subsection (2), has been completed for each public deposit account and is in the possession of the public depositor.

(7)  Notices relating to the public deposits program shall be mailed to public depositors and governmental units from a list developed annually from:

(a)  Public depositors that filed an annual report under subsection (6).

(b)  Governmental units existing on September 30 that had no public deposits but filed an annual report stating "no public deposits".

(c)  Governmental units established during the year that filed an annual report as a new governmental unit or otherwise furnished in writing to the Treasurer its official name, address, and federal employer identification number.

(8)  If a public depositor does not comply with this section on each public deposit account, the protection from loss provided in s. 280.18 is not effective as to that public deposit account.

History.--s. 21, ch. 87-409; s. 12, ch. 88-185; s. 24, ch. 91-244; s. 16, ch. 96-216; s. 18, ch. 98-409.

280.18  Protection of public depositors; liability of the state.--

(1)  When public deposits are made in accordance with this chapter, there shall be protection from loss to public depositors, as defined in s. 280.02, in the absence of negligence, malfeasance, misfeasance, or nonfeasance on the part of the public depositor or on the part of his or her agents or employees.

(2)  The liability of the state, the Treasurer, or any state agency, or any employee or agent of the state, the Treasurer, or a state agency, for any action taken in the performance of their powers and duties under this chapter shall be limited to that as a public depositor.

History.--s. 3, ch. 81-285; s. 22, ch. 87-409; s. 194, ch. 95-148; s. 19, ch. 98-409.

280.19  Rules.--The Treasurer shall adopt rules pursuant to ss. 120.536(1) and 120.54 to administer the provisions of this chapter.

History.--s. 3, ch. 81-285; s. 55, ch. 98-200.