The Florida Senate

280.04  Collateral for public deposits; general provisions.--

(1)  The Treasurer shall determine the collateral requirements and collateral pledging level for each qualified public depository following procedures established by rule. These procedures shall include numerical parameters for 25-percent, 50-percent, 125-percent, and 200-percent pledge levels based on nationally recognized financial rating services information and established financial performance guidelines.

(2)  A qualified public depository may not accept or retain any public deposit which is required to be secured unless it has deposited with the Treasurer eligible collateral at least equal to the greater of:

(a)  The average daily balance of public deposits that does not exceed the lesser of its capital account or 20 percent of the pool figure multiplied by the depository's collateral-pledging level, plus the greater of:

1.  One hundred twenty-five percent of the average daily balance of public deposits in excess of capital accounts; or

2.  One hundred twenty-five percent of the average daily balance of public deposits in excess of 20 percent of the pool figure.

(b)  Twenty-five percent of the average monthly balance of public deposits.

(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 material decreases in its capital accounts; or

3.  Has an overall financial condition that is materially deteriorating.

(d)  Two hundred percent of an established maximum amount of public deposits that has been mutually agreed upon by and between the Treasurer and the qualified public depository.

(e)  Minimum required collateral of $100,000.

(3)  Additional collateral is required within 48 hours if public deposits are accepted that would increase the qualified public depository's average daily balance for the current month by 25 percent over the average daily balance of the previously reported month.

(4)  Additional collateral of 20 percent of required collateral is necessary if a valuation date other than the close of business as described below has been approved for the qualified public depository and the required collateral is found to be insufficient based on the Treasurer's valuation.

(5)  Each qualified public depository shall value its collateral in the following manner; it must:

(a)  Use a nationally recognized source.

(b)  Use market price, quality ratings, and pay-down factors as of the close of business on the last banking day in the reported month, or as of a date approved by the Treasurer.

(c)  Report any material decline in value that occurs before the date of mailing the monthly report to the Treasurer.

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; s. 2, ch. 2000-352.