Senate Bill 2130er
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1
2 An act relating to public deposits; amending s.
3 280.02, F.S.; defining the terms "affiliate,"
4 "book-entry form," "operating subsidiary,"
5 "pledged collateral," "pledgor," "pool figure,"
6 "Treasurer's custody," and "triggering events"
7 and redefining the terms "collateral-pledging
8 level" and "public deposit"; amending s.
9 280.04, F.S.; revising general provisions
10 relating to collateral for public deposits;
11 creating s. 280.041, F.S.; prescribing
12 requirements for collateral arrangements;
13 providing duties and powers of the Treasurer;
14 prescribing duties and powers of depositories;
15 amending s. 280.13, F.S.; revising the list of
16 securities eligible to be pledged as
17 collateral; amending s. 625.52, F.S.; revising
18 requirements for certificates of deposit to
19 constitute securities eligible for deposit;
20 amending s. 660.27, F.S.; providing
21 requirements for deposit of securities with the
22 Treasurer; providing an effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25
26 Section 1. Section 280.02, Florida Statutes, is
27 amended to read:
28 280.02 Definitions.--As used in this chapter, the
29 term:
30 (1) "Affiliate" means an entity that is related
31 through a parent corporation's controlling interest. The term
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1 also includes any financial institution holding company or any
2 subsidiary or service corporation of such holding company.
3 (2)(1) "Average daily balance" means the average daily
4 balance of public deposits held during the reported month. The
5 average daily balance must be determined by totaling, by
6 account, the daily balances held by the depositor and then
7 dividing the total by the number of calendar days in the
8 month. Deposit insurance is then deducted from each account
9 balance and the resulting amounts are totaled to obtain the
10 average daily balance.
11 (3)(2) "Average monthly balance" means the average
12 monthly balance of public deposits held, before deducting
13 deposit insurance, by the depository during any 12 calendar
14 months. The average monthly balance of the previous 12
15 calendar months must be determined by adding the average daily
16 balance before deducting deposit insurance for the reported
17 month and the average daily balances before deducting deposit
18 insurance for the 11 months preceding that month and dividing
19 the total by 12.
20 (4) "Book-entry form" means that securities are not
21 represented by a paper certificate but represented by an
22 account entry on the records of a depository trust clearing
23 system or, in the case of U.S. Government securities, a
24 Federal Reserve Bank.
25 (5)(3) "Capital account" means total equity capital,
26 as defined on the balance-sheet portion of the Consolidated
27 Reports of Condition and Income (call report) or the Thrift
28 Financial Report, less intangible assets, as submitted to the
29 regulatory banking authority.
30 (6)(4) "Collateral-pledging level," for qualified
31 public depositories, means the percentage of collateral
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1 required to be pledged as provided in s. 280.04 by a financial
2 institution.
3 (7)(5) "Current month" means the month immediately
4 following the month for which the monthly report is due from
5 qualified public depositories.
6 (8)(6) "Custodian" means the Treasurer or any bank,
7 savings association, or trust company that:
8 (a) Is organized and existing under the laws of this
9 state, any other state, or the United States;
10 (b) Has executed all forms required under this chapter
11 or any rule adopted hereunder;
12 (c) Agrees to be subject to the jurisdiction of the
13 courts of this state, or of courts of the United States which
14 are located within this state, for the purpose of any
15 litigation arising out of this chapter; and
16 (d) Has been approved by the Treasurer to act as a
17 custodian.
18 (9)(7) "Default or insolvency" includes, without
19 limitation, the failure or refusal of a qualified public
20 depository to pay any check or warrant drawn upon sufficient
21 and collected funds by any public depositor or to return any
22 deposit on demand or at maturity together with interest as
23 agreed; the issuance of an order by any supervisory authority
24 restraining such depository from making payments of deposit
25 liabilities; or the appointment of a receiver for such
26 depository.
27 (10)(8) "Effective date of notice of withdrawal or
28 order of discontinuance" pursuant to s. 280.11(3) means that
29 date which is set out as such in any notice of withdrawal or
30 order of discontinuance from the Treasurer.
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1 (11)(9) "Eligible collateral" means securities as
2 designated in s. 280.13.
3 (12)(10) "Financial institution" means, including, but
4 not limited to, an association, bank, brokerage firm, credit
5 union, industrial savings bank, savings and loan association,
6 trust company, or other type of financial institution
7 organized under the laws of this state or any other state of
8 the United States and doing business in this state or any
9 other state, in the general nature of the business conducted
10 by banks and savings associations.
11 (13)(11) "Governmental unit" means the state or any
12 county, school district, community college district, special
13 district, metropolitan government, or municipality, including
14 any agency, board, bureau, commission, and institution of any
15 of such entities, or any court.
16 (14)(12) "Loss to public depositors" means loss of all
17 principal and all interest or other earnings on the principal
18 accrued or accruing as of the date the qualified public
19 depository was declared in default or insolvent.
20 (15) "Operating subsidiary" means the qualified public
21 depository's 100-percent owned corporation that has ownership
22 of pledged collateral. The operating subsidiary may have no
23 powers beyond those that its parent qualified public
24 depository may itself exercise. The use of an operating
25 subsidiary is at the discretion of the qualified public
26 depository and must meet the Treasurer's requirements.
27 (16) "Pledged collateral" means securities or cash
28 held separately and distinctly by an eligible custodian for
29 the benefit of the Treasurer to be used as security for
30 Florida public deposits. This includes maturity and call
31 proceeds.
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1 (17) "Pledgor" means the qualified public depository
2 and, if one is used, operating subsidiary.
3 (18) "Pool figure" means the total average monthly
4 balances of public deposits held by all qualified public
5 depositories during the immediately preceding 12-month period.
6 (19)(13) "Previous month" means the month or months
7 immediately preceding the month for which a monthly report is
8 due from qualified public depositories.
9 (20)(14) "Public deposit" means the moneys of the
10 state or of any county, school district, community college
11 district, special district, metropolitan government, or
12 municipality, including agencies, boards, bureaus,
13 commissions, and institutions of any of the foregoing, or of
14 any court, and includes the moneys of all county officers,
15 including constitutional officers, that are placed on deposit
16 in a bank, savings bank, or savings association and for which
17 the bank, savings bank, or savings association is required to
18 maintain reserves. This includes, including, but is not
19 limited to, time deposit accounts, demand deposit accounts,
20 and nonnegotiable certificates of deposit. All certificates
21 of deposit, whether negotiable or nonnegotiable, shall be
22 considered deposits and shall be subject to the provisions of
23 this chapter. Moneys in deposit notes and in other nondeposit
24 accounts such as used in repurchase or reverse repurchase
25 operations are investments and are not public deposits as
26 defined in this subsection. Securities, mutual funds, and
27 similar types of investments are not considered public
28 deposits and shall not be subject to the provisions of this
29 chapter.
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1 (21)(15) "Public depositor" means the Treasurer or
2 other chief financial officer or designee responsible for
3 handling public deposits.
4 (22)(16) "Public deposits program" means the
5 administration of this chapter by or on behalf of the
6 Treasurer.
7 (23)(17) "Qualified public depository" means any bank,
8 savings bank, or savings association that:
9 (a) Is organized and exists under the laws of the
10 United States, the laws of this state or any other state or
11 territory of the United States.
12 (b) Has its principal place of business in this state
13 or has a branch office in this state which is authorized under
14 the laws of this state or of the United States to receive
15 deposits in this state.
16 (c) Has deposit insurance under the provision of the
17 Federal Deposit Insurance Act, as amended, 12 U.S.C. ss. 1811
18 et seq.
19 (d) Has procedures and practices for accurate
20 identification, classification, reporting, and
21 collateralization of public deposits.
22 (e) Meets all the requirements of this chapter.
23 (f) Has been designated by the Treasurer as a
24 qualified public depository.
25 (24)(18) "Reported month" means the month for which a
26 monthly report is due from qualified public depositories.
27 (25)(19) "Required collateral" of a qualified public
28 depository means eligible collateral having a market value
29 equal to or in excess of the amount required to be pledged
30 pursuant to s. 280.04 as computed and reported monthly or when
31 requested by the Treasurer.
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1 (26)(20) "Treasurer" means the Treasurer of the State
2 of Florida.
3 (27) "Treasurer's custody" is a collateral arrangement
4 governed by a contract between a designated Treasurer's
5 custodian and the Treasurer. This arrangement requires
6 collateral to be in the Treasurer's name in order to perfect
7 the security interest.
8 (28) "Triggering events" are events set out in
9 subsection 280.041(4) which give the Treasurer, as pledgee,
10 the right to instruct the custodian to transfer securities
11 pledged, interest payments, and other proceeds of pledged
12 collateral not previously credited to the pledgor.
13 Section 2. Section 280.04, Florida Statutes, is
14 amended to read:
15 (Substantial rewording of section. See
16 s. 280.04, F.S., for present text.)
17 280.04 Collateral for public deposits; general
18 provisions.--
19 (1) The Treasurer shall determine the collateral
20 requirements and collateral pledging level for each qualified
21 public depository following procedures established by rule.
22 These procedures shall include numerical parameters for
23 25-percent, 50-percent, 125-percent, and 200-percent pledge
24 levels based on nationally recognized financial rating
25 services information and established financial performance
26 guidelines.
27 (2) A qualified public depository may not accept or
28 retain any public deposit which is required to be secured
29 unless it has deposited with the Treasurer eligible collateral
30 at least equal to the greater of:
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1 (a) The average daily balance of public deposits that
2 does not exceed the lesser of its capital account or 20
3 percent of the pool figure multiplied by the depository's
4 collateral-pledging level, plus the greater of:
5 1. One hundred twenty-five percent of the average
6 daily balance of public deposits in excess of capital
7 accounts; or
8 2. One hundred twenty-five percent of the average
9 daily balance of public deposits in excess of 20 percent of
10 the pool figure.
11 (b) Twenty-five percent of the average monthly balance
12 of public deposits.
13 (c) One hundred twenty-five percent of the average
14 daily balance of public deposits if the qualified public
15 depository:
16 1. Has been established for less than 3 years;
17 2. Has experienced material decreases in its capital
18 accounts; or
19 3. Has an overall financial condition that is
20 materially deteriorating.
21 (d) Two hundred percent of an established maximum
22 amount of public deposits that has been mutually agreed upon
23 by and between the Treasurer and the qualified public
24 depository.
25 (e) Minimum required collateral of $100,000.
26 (3) Additional collateral is required within 48 hours
27 if public deposits are accepted that would increase the
28 qualified public depository's average daily balance for the
29 current month by 25 percent over the average daily balance of
30 the previously reported month.
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1 (4) Additional collateral of 20 percent of required
2 collateral is necessary if a valuation date other than the
3 close of business as described below has been approved for the
4 qualified public depository and the required collateral is
5 found to be insufficient based on the Treasurer's valuation.
6 (5) Each qualified public depository shall value its
7 collateral in the following manner; it must:
8 (a) Use a nationally recognized source.
9 (b) Use market price, quality ratings, and pay-down
10 factors as of the close of business on the last banking day in
11 the reported month, or as of a date approved by the Treasurer.
12 (c) Report any material decline in value that occurs
13 before the date of mailing the monthly report to the
14 Treasurer.
15 Section 3. Section 280.041, Florida Statutes, is
16 created to read:
17 280.041 Collateral arrangements; agreements,
18 provisions, and triggering events.--
19 (1) With the approval of the Treasurer, a qualified
20 public depository or operating subsidiary, as pledgor, may
21 deposit eligible collateral with a custodian. Except in the
22 case of using a Federal Reserve Bank as custodian, which may
23 require other collateral agreement provisions, the following
24 are necessary for the Treasurer's approval:
25 (a) A completed collateral agreement in a form
26 prescribed by the Treasurer in which the pledgor agrees to the
27 following provisions:
28 1. The pledgor shall own the pledged collateral. The
29 pledged collateral shall be eligible collateral and shall be
30 at least equal to the amount of required collateral.
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1 2. The pledgor shall grant to the Treasurer an
2 interest in pledged collateral for the purposes of this
3 section. The pledgor shall not enter into or execute any other
4 agreement related to the pledged collateral that would create
5 an interest in or lien on that collateral in any manner in
6 favor of any third party without the written consent of the
7 Treasurer.
8 3. The pledgor shall not grant the custodian any lien
9 that attaches to the collateral in favor of the custodian that
10 is superior or equal to the security interest of the
11 Treasurer.
12 4. The pledgor shall agree that the Treasurer may,
13 without notice to or consent by the pledgor, require the
14 custodian to comply with and perform any and all requests and
15 orders directly from the Treasurer. These include, but are not
16 limited to, liquidating all collateral and submitting the
17 proceeds directly to the Treasurer in the name of the
18 Treasurer only or transferring all collateral into an account
19 designated solely by the Treasurer.
20 5. The pledgor shall acknowledge that the Treasurer
21 may, without notice to or consent by the pledgor, require the
22 custodian to hold principal payments and income for the
23 benefit of the Treasurer.
24 6. The pledgor shall initiate collateral transactions
25 on forms prescribed by the Treasurer in the following manner:
26 a. A deposit transaction of eligible collateral may be
27 made without prior approval from the Treasurer
28 provided: security types that have restrictions have been
29 approved in advance of the transaction by the Treasurer and
30 simultaneous notification is given to the Treasurer; and the
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1 custodian has not received notice from the Treasurer
2 prohibiting deposits without prior approval.
3 b. A substitution transaction of eligible collateral
4 may be made without prior approval from the Treasurer
5 provided: security types that have restrictions have been
6 approved in advance of the transaction by the Treasurer; the
7 market value of the securities to be substituted is at least
8 equal to the amount withdrawn; simultaneous notification is
9 given to the Treasurer; and the custodian has not received
10 notice from the Treasurer prohibiting substitution.
11 c. A transfer of collateral between accounts at a
12 custodian requires the Treasurer's prior approval. The
13 collateral shall be released subject to redeposit in the new
14 account with a pledge to the Treasurer intact.
15 d. A transfer of collateral from a custodian to
16 another custodian requires the Treasurer's prior approval and
17 a valid collateral agreement with the new custodian. The
18 collateral shall be released subject to redeposit at the new
19 custodian with a pledge to the Treasurer intact.
20 e. A withdrawal transaction requires the Treasurer's
21 prior approval. The market value of eligible collateral
22 remaining after the withdrawal shall be at least equal to the
23 amount of required collateral. A withdrawal transaction shall
24 be executed for any release of collateral including maturity
25 or call proceeds.
26 f. Written notice shall be sent to the Treasurer to
27 remove from the inventory of pledged collateral a pay-down
28 security that has paid out with zero principal remaining.
29 7. If pledged collateral includes definitive
30 (physical) securities in registered form which are in the name
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1 of the pledgor or a nominee, the pledgor shall deliver the
2 following documents when requested by the Treasurer:
3 a. A separate certified power of attorney in a form
4 prescribed by the Treasurer for each issue of securities.
5 b. Separate bond assignment forms as required by the
6 bond agent or trustee.
7 c. Certified copies of resolutions adopted by the
8 pledgor's governing body authorizing execution of these
9 documents.
10 8. The pledgor shall be responsible for all costs
11 necessary to the functioning of the collateral agreement or
12 associated with confirmation of pledged collateral to the
13 Treasurer and acknowledges that these costs shall not be a
14 charge against the Treasurer or his or her interests in the
15 pledged collateral.
16 9. The pledgor, if notified by the Treasurer, shall
17 not be allowed to use a custodian if that custodian fails to
18 complete the collateral agreement, releases pledged collateral
19 without the Treasurer's approval, fails to properly complete
20 confirmations of pledged collateral, fails to honor a request
21 for examination of definitive pledged collateral and records
22 of book-entry securities, or fails to provide requested
23 documents on definitive securities.
24 10. The pledgor shall be subject to the jurisdiction
25 of the courts of the state of Florida, or of courts of the
26 United States located within the state of Florida, for the
27 purpose of any litigation arising out of the act.
28 11. The pledgor is responsible and liable to the
29 Treasurer for any action of agents the pledgor uses to execute
30 collateral transactions or submit reports to the Treasurer.
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1 12. The pledgor shall agree that any information,
2 forms, or reports electronically transmitted to the Treasurer
3 shall have the same enforceability as a signed writing.
4 13. The pledgor shall submit proof that authorized
5 individuals executed the collateral agreement on behalf of the
6 pledgor.
7 14. The pledgor shall agree by resolution of the board
8 of directors that collateral agreements entered into for
9 purposes of this section have been formally accepted and
10 constitute official records of the pledgor.
11 15. The pledgor shall be bound by any other provisions
12 found necessary for a perfected security interest in
13 collateral under the Uniform Commercial Code.
14 (b) A completed collateral agreement in a form
15 prescribed by the Treasurer in which the custodian agrees to
16 the following provisions:
17 1. The custodian shall have no responsibility to
18 ascertain whether the pledged securities are at least equal to
19 the amount of required collateral nor whether the pledged
20 securities are eligible collateral.
21 2. The custodian shall hold pledged collateral in a
22 custody account for the Treasurer for purposes of this
23 section. The custodian shall not enter into or execute any
24 other agreement related to the collateral that would create an
25 interest in or lien on that collateral in any manner in favor
26 of any third party without the written consent of the
27 Treasurer.
28 3. The custodian shall agree that any lien that
29 attaches to the collateral in favor of the custodian shall not
30 be superior or equal to the security interest of the
31 Treasurer.
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1 4. The custodian shall, without notice to or consent
2 by the pledgor, comply with and perform any and all requests
3 and orders directly from the Treasurer. These include, but are
4 not limited to, liquidating all collateral and submitting the
5 proceeds directly to the Treasurer in the name of the
6 Treasurer only or transferring all collateral into an account
7 designated solely by the Treasurer.
8 5. The custodian shall consider principal payments on
9 pay-down securities and income paid on pledged collateral as
10 the property of the pledgor and shall pay thereto provided the
11 custodian has not received written notice from the Treasurer
12 to hold such principal payments and income for the benefit of
13 the Treasurer.
14 6. The custodian shall process collateral transactions
15 on forms prescribed by the Treasurer in the following manner:
16 a. A deposit transaction of eligible collateral may be
17 made without prior approval from the Treasurer unless the
18 custodian has received notice from the Treasurer requiring the
19 Treasurer's prior approval.
20 b. A substitution transaction of eligible collateral
21 may be made without prior approval from the Treasurer provided
22 the pledgor certifies the market value of the securities to be
23 substituted is at least equal to the market value amount of
24 the securities to be withdrawn and the custodian has not
25 received notice from the Treasurer prohibiting substitution.
26 c. A transfer of collateral between accounts at a
27 custodian requires the Treasurer's prior approval. The
28 collateral shall be released subject to redeposit in the new
29 account with a pledge to the Treasurer intact. Confirmation
30 from the custodian to the Treasurer must be received within 5
31 business days of the redeposit.
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1 d. A transfer of collateral from a custodian to
2 another custodian requires the Treasurer's prior approval. The
3 collateral shall be released subject to redeposit at the new
4 custodian with a pledge to the Treasurer intact. Confirmation
5 from the new custodian to the Treasurer must be received
6 within 5 business days of the redeposit.
7 e. A withdrawal transaction requires the Treasurer's
8 prior approval. A withdrawal transaction shall be executed for
9 the release of any pledged collateral including maturity or
10 call proceeds.
11 7. If pledged collateral includes definitive
12 (physical) securities in registered form, which are in the
13 name of the custodian or a nominee, the custodian shall
14 deliver the following documents when requested by the
15 Treasurer:
16 a. A separate certified power of attorney in a form
17 prescribed by the Treasurer for each issue of securities.
18 b. Separate bond assignment forms as required by the
19 bond agent or trustee.
20 c. Certified copies of resolutions adopted by the
21 custodian's governing body authorizing execution of these
22 documents.
23 8. The custodian shall acknowledge that the pledgor is
24 responsible for all costs necessary to the functioning of the
25 collateral agreement or associated with confirmation of
26 securities pledged to the Treasurer and that these costs shall
27 not be a charge against the Treasurer or his or her interests
28 in the pledged collateral.
29 9. The custodian shall agree to provide confirmation
30 of pledged collateral upon request from the Treasurer. This
31 confirmation shall be provided within 15 working days after
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1 the request, in a format prescribed by the Treasurer, and
2 shall require no identification other than the pledgor name
3 and location, unless the special identification is provided in
4 the collateral agreement.
5 10. The custodian shall be subject to the jurisdiction
6 of the courts of the state of Florida, or of courts of the
7 United States located within the state of Florida, for the
8 purpose of any litigation arising out of the act.
9 11. The custodian shall be responsible and liable to
10 the Treasurer for any action of agents the custodian uses to
11 hold and service collateral pledged to the Treasurer.
12 12. The custodian shall agree that any information,
13 forms, or reports electronically transmitted to the Treasurer
14 shall have the same enforceability as a signed writing.
15 13. The Treasurer shall have the right to examine
16 definitive pledged collateral and records of book-entry
17 securities during the regular business hours of the custodian
18 without cost to the Treasurer.
19 14. The responsibilities of the custodian for the
20 safekeeping of the pledged collateral shall be limited to the
21 diligence and care usually exercised by a banking or trust
22 institution toward its own property.
23 15. The custodian shall be bound by any other
24 provisions found necessary for the Treasurer to have a
25 perfected security interest in collateral under the Uniform
26 Commercial Code.
27 (2) With the approval of the Treasurer, a pledgor may
28 deposit eligible collateral pursuant to an agreement with a
29 Federal Reserve Bank. The Federal Reserve Bank agreement may
30 require terms not consistent with subsection (1).
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1 (3) The Treasurer may require deposit or transfer of
2 collateral into a custodial account established in the
3 Treasurer's name at a designated custodian. This requirement
4 for Treasurer's custody shall have the following
5 characteristics:
6 (a) One or more triggering events must have occurred.
7 (b) The custodian used must be a Treasurer's approved
8 custodian that must:
9 1. Meet the definition of custodian.
10 2. Not be an affiliate of the qualified public
11 depository.
12 3. Be bound under a distinct Treasurer's custodial
13 contract.
14 (c) All deposit transactions require the approval of
15 the Treasurer.
16 (d) All collateral must be in book-entry form.
17 (e) The qualified public depository shall be
18 responsible for all costs necessary to the functioning of the
19 contract or associated with the confirmation of securities in
20 the name of the Treasurer and acknowledges that these costs
21 shall not be a charge against the Treasurer and may be
22 deducted from the collateral or income earned if unpaid.
23 (4) The Treasurer may direct a custodian to deposit or
24 transfer collateral and proceeds of securities not previously
25 credited upon the occurrence of one or more triggering events
26 provided that, to the extent not incompatible with the
27 protection of public deposits, as determined in the
28 Treasurer's sole and absolute discretion, the Treasurer shall
29 provide a custodian with 48 hours' advance notice before
30 directing such deposit or transfer. These events include:
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1 (a) The Treasurer determines that an immediate danger
2 to the public health, safety, or welfare exists.
3 (b) The qualified public depository fails to have
4 adequate procedures and practices for the accurate
5 identification, classification, reporting, and
6 collateralization of public deposits.
7 (c) The custodian fails to provide or allow inspection
8 and verification of documents, reports, records, or other
9 information dealing with the pledged collateral or financial
10 information.
11 (d) The qualified public depository or its operating
12 subsidiary fails to provide or allow inspection and
13 verification of documents, reports, records, or other
14 information dealing with Florida public deposits, pledged
15 collateral, or financial information.
16 (e) The custodian fails to hold income and principal
17 payments made on securities held as collateral or fails to
18 deposit or transfer such payments pursuant to the Treasurer's
19 instructions.
20 (f) The qualified public depository defaults or
21 becomes insolvent.
22 (g) The qualified public depository fails to pay an
23 assessment.
24 (h) The qualified public depository fails to pay an
25 administrative penalty.
26 (i) The qualified public depository fails to meet
27 financial condition standards.
28 (j) The qualified public depository charges a
29 withdrawal penalty to public depositors when the qualified
30 public depository is suspended, disqualified, or withdrawn
31 from the public deposits program.
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1 (k) The qualified public depository does not provide,
2 as required, the public depositor with annual confirmation
3 information on all open Florida public deposit accounts.
4 (l) The qualified public depository pledges
5 insufficient or unacceptable collateral to cover public
6 deposits.
7 (m) Pledged collateral, other than a proper
8 substitution, is released without the prior approval of the
9 Treasurer.
10 (n) The qualified public depository, custodian,
11 operating subsidiary, or agent violates any provision of the
12 act and the Treasurer determines that such violation may be
13 remedied by a move of collateral.
14 (o) The qualified public depository, custodian,
15 operating subsidiary, or agent fails to timely cooperate in
16 resolving problems by the date established in written
17 communication from the Treasurer.
18 (p) The custodian fails to provide sufficient
19 confirmation information.
20 (q) Events that would bring about an administrative or
21 legal action by the Treasurer.
22 (5) The Treasurer shall adopt rules to identify forms
23 and establish procedures for collateral agreements and
24 transactions, furnish confirmation requirements, establish
25 procedures for using an operating subsidiary and agents, and
26 clarify terms.
27 Section 4. Paragraph (c) of subsection (1) and
28 subsection (2) of section 280.13, Florida Statutes, are
29 amended to read:
30 280.13 Collateral eligible for pledge by banks and
31 savings associations.--
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1 (1) Securities eligible to be pledged as collateral by
2 banks and savings associations shall be limited to:
3 (c) Obligations of the following federal agencies:
4 1. Farm credit banks.
5 2. Federal land banks.
6 3. The Federal Home Loan Bank and its district banks,
7 including time deposits.
8 4. Federal intermediate credit banks.
9 5. The Federal Home Loan Mortgage Corporation.
10 6. The Federal National Mortgage Association.
11 7. Obligations guaranteed by the Government National
12 Mortgage Association.
13 (2) In addition to the securities listed in subsection
14 (1), the Treasurer may, in his or her discretion, allow the
15 pledge of the following types of securities. The Treasurer
16 shall, by rule, define any restrictions, specific criteria, or
17 circumstances for which these instruments will be acceptable.
18 (a) Securities of, or other interests in, any open-end
19 management investment company registered under the Investment
20 Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended
21 from time to time, provided the portfolio of such investment
22 company is limited to direct obligations of the United States
23 Government and to repurchase agreements fully collateralized
24 by such direct obligations of the United States Government and
25 provided such investment company takes delivery of such
26 collateral either directly or through an authorized custodian.
27 (b) Collateralized Mortgage Obligations.
28 (c) Real Estate Mortgage Investment Conduits.
29 (d) Certificates of deposit.
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1 Section 5. Paragraph (g) of subsection (2) and
2 subsection (3) of section 625.52, Florida Statutes, are
3 amended to read:
4 625.52 Securities eligible for deposit.--
5 (2) To be eligible for deposit under subsection (1),
6 any bond or note must have the following characteristics:
7 (g) After October 1, 1992, The bond or note must be
8 eligible for book-entry form on the books of the Federal
9 Reserve Book-Entry System or in a depository trust clearing
10 system.
11 (3) To be eligible for deposit under paragraph (1)(h)
12 subsection (1), any certificate of deposit must have the
13 following characteristics:
14 (a) The certificate of deposit must be issued by a
15 bank, savings bank, or savings association that is organized
16 under the laws of the United States, of this state, or of any
17 other state and that has a principal office or branch office
18 in this state which is authorized to receive deposits in this
19 state qualified public depository as defined in s. 280.02(17),
20 and the depository must conform to and be bound by all
21 provisions of chapter 280 with regard to such funds.
22 (b) The certificate of deposit must be
23 interest-bearing and may not be issued in discounted form.
24 (c) The certificate of deposit must be issued for a
25 period of not less than 1 year.
26 (d) The issuing bank, savings bank, or savings
27 association qualified public depository must agree to the
28 terms and conditions of the State Treasurer regarding the
29 rights to the certificate of deposit and must have executed a
30 provide written certificate of deposit confirmation of such
31 agreement with to the State Treasurer. The terms and
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1 conditions of such agreement shall must include, but need not
2 be limited to:
3 1. Exclusive authorized signature authority for the
4 State Treasurer.
5 2. Agreement to pay, without protest, the proceeds of
6 its certificate of deposit to the department within thirty
7 business days after presentation. If the depository fails to
8 pay the proceeds, the State Treasurer may take legal title to,
9 and sell, sufficient securities of the depository held
10 pursuant to chapter 280 to pay to the department the face
11 value of the certificate of deposit.
12 3. Prohibition against levies, setoffs, survivorship,
13 or other conditions that might hinder the department's ability
14 to recover the full face value of a certificate of deposit.
15 4. Instructions regarding interest payments, renewals,
16 taxpayer identification, and early withdrawal penalties.
17 5. Agreement to be subject to the jurisdiction of the
18 courts of this state, or those of the United States which are
19 located in this state, for the purposes of any litigation
20 arising out of this section.
21 6.5. Such other conditions as the department requires
22 may require.
23 Section 6. Section 660.27, Florida Statutes, is
24 amended to read:
25 660.27 Deposit of securities with Treasurer.--
26 (1) Before transacting any trust business in this
27 state, every trust company and every state or national bank or
28 state or federal association having trust powers shall give
29 satisfactory security by the deposit or pledge of security of
30 the kind or type provided in this section having at all times
31 a market value in an amount equal to 25 percent of the issued
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1 and outstanding capital stock of such trust company, bank, or
2 state or federal stock association or, in the case of a
3 federal mutual association, an equivalent amount determined by
4 the department, or the sum of $25,000, whichever is greater.
5 However, the value of the security deposited or pledged
6 pursuant to the provisions of this section by a state trust
7 company, a state bank or state association having trust
8 powers, or a national bank or federal association having its
9 principal office in this state and having trust powers shall
10 not be required to exceed $500,000. Any notes, mortgages,
11 bonds, or other securities, other than shares of stock,
12 eligible for investment by a state bank, state association, or
13 state trust company, or eligible for investment by
14 fiduciaries, shall be accepted as satisfactory security for
15 the purposes of this section.
16 (2) The trust company, bank, or association shall
17 provide to the Treasurer the following:
18 (a) Written information which includes full legal
19 name; federal employer identification number; principal place
20 of business; amount of capital stock; and amount of required
21 collateral.
22 (b) The required information listed in paragraph (a)
23 shall be provided annually as of September 30 and shall be due
24 November 15.
25 (3)(2) The Treasurer shall determine whether the
26 security deposited or pledged pursuant to this section, or
27 tendered for such deposit or pledge, is of the kind or type
28 permitted, and has a market value in the amount required, by
29 subsection (1). The security required by this section shall
30 be deposited with or to the credit of, or pledged to, the
31 Treasurer for the account of each state or national bank,
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1 state or federal association, or trust company depositing or
2 pledging the same and shall be used, if at all, by the
3 liquidator of such bank, association, or trust company with
4 first priority being given to claims on account of the trust
5 business or fiduciary functions of such bank, association, or
6 trust company or, prior to liquidation, for the payment of any
7 judgment or decree which may be rendered against such bank,
8 association, or trust company in connection with its trust
9 business or its fiduciary functions if such judgment or decree
10 is not otherwise paid by, or out of other assets of, such
11 bank, association, or trust company.
12 (4)(3) Any security of any kind which has been
13 deposited or pledged as provided in this section may at any
14 time, by or upon the direction of such bank, association, or
15 trust company which deposited or pledged such security, be
16 withdrawn and released from such pledge provided that
17 simultaneously therewith satisfactory security as provided in
18 this section, in such amount, if any, as may be necessary in
19 order to comply with the requirements of this section, is
20 substituted for the security so withdrawn and released.
21 (5) With the approval of the Treasurer, each trust
22 company, bank, or association as pledgor may deposit eligible
23 collateral with a custodian. This custodian shall not be
24 affiliated or related to the trust company, bank, or
25 association. Collateral must be deposited using the collateral
26 agreements and provisions as set forth in s. 280.041(1)(2).
27 With respect to the deposit or pledge of securities as
28 provided in this section, the Treasurer may accept a
29 safekeeping receipt, in a form he or she prescribes, issued by
30 another bank, trust company, or savings association located
31 within or without the state.
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1 Section 7. This act shall take effect July 1, 2000.
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