Monday, October 13, 2008
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Tracking Virginia’s General Assembly
since 2007.
SB398: Security of Public Deposits Act; eligible collateral
Be it enacted by the General Assembly of Virginia:
1. That § 2.2-4401 of the Code of Virginia is amended and reenacted as follows:
§ 2.2-4401. Definitions.
As used in this chapter, unless the context requires a different meaning:
"Default or insolvency" includes, but shall not be limited to, the failure or refusal of any qualified public depository to return any public deposit upon demand or at maturity and the issuance of an order of supervisory authority restraining such depository from making payments of deposit liabilities or the appointment of a receiver for such depository.
"Eligible collateral" means securities of the character authorized as legal investments under the laws of the Commonwealth for public sinking funds or other public funds and securities acceptable under United States Treasury Department regulations as collateral for the security of treasury tax and loan accounts and Federal Home Loan Bank letters-of-credit that adhere to the guidelines as promulgated by the Treasury Board.
"Located in Virginia" means having a main office or branch office in the Commonwealth where deposits are accepted, checks are paid, and money is lent.
"Public deposit" means moneys of the Commonwealth or of any county, city, town or other political subdivision thereof, including moneys of any commission, institution, committee, board or officer of the foregoing and any state, circuit, county or municipal court, which moneys are deposited in any qualified public depository in any of the following types of accounts: nonnegotiable or registered time deposits, demand deposits, savings deposits, and any other transaction accounts, and security for such deposit is required by other provisions of law, or is required due to an election of the public depositor.
"Qualified public depository" means any national
banking association, federal savings and loan association or federal savings
bank located in Virginia and, any bank, trust company or savings
institution organized under Virginia law, or any state bank or savings
institution organized under the laws of another state located in Virginia,
that receives or holds public deposits that are secured pursuant to this
chapter.
"Default or insolvency" includes, but shall not
be limited to, the failure or refusal of any qualified public depository to
return any public deposit upon demand or at maturity and the issuance of an
order of supervisory authority restraining such depository from making payments
of deposit liabilities or the appointment of a receiver for such depository.
"Required collateral" of a qualified public depository means, (i) in the case of a bank, a sum equal to 50 percent of the actual public deposits not covered by federal deposit insurance held at the close of business on the last banking day in the month immediately preceding the date of any computation of such balance, or the average balance of all public deposits for such preceding month, whichever is greater, and (ii) in the case of a savings and loan association or savings bank, a sum equal to 100 percent of the average daily balance for the month immediately preceding the date of any computation of such balance of all public deposits not covered by federal deposit insurance held by such depository but shall not be less than 100 percent of the public deposits held by such depository at the close of business on the last banking day in such preceding month.
"Treasurer" and "public depositor" means the State Treasurer, a county, city, or town treasurer or director of finance or similar officer and the custodian of any other public deposits secured pursuant to this chapter.
"Treasury Board" means the Treasury Board of the Commonwealth created by § 2.2-2415.
"Eligible collateral" means securities of the
character authorized as legal investments under the laws of the Commonwealth
for public sinking funds or other public funds and securities acceptable under
United States Treasury Department regulations as collateral for the security of
treasury tax and loan accounts.
"Required collateral" of a qualified public
depository means, (i) in the case of a bank, a sum equal to fifty percent of
the actual public deposits held at the close of business on the last banking
day in the month immediately preceding the date of any computation of such
balance, or the average balance of all public deposits for such preceding
month, whichever is greater, and (ii) in the case of a savings and loan
association or savings bank, a sum equal to 100 percent of the average daily
balance for the month immediately preceding the date of any computation of such
balance of all public deposits held by such depository but shall not be less
than 100 percent of the public deposits held by such depository at the close of
business on the last banking day in such preceding month.
"Treasurer" and "public depositor" means
the State Treasurer, a county, city, or town treasurer or director of finance
or similar officer and the custodian of any other public deposits secured
pursuant to this chapter.
2. That an emergency exists and this act is in force from its passage.
Be it enacted by the General Assembly of Virginia:
1. That § 2.2-4401 of the Code of Virginia is amended and reenacted as follows:
§ 2.2-4401. Definitions.
As used in this chapter, unless the context requires a different meaning:
"Public deposit" means moneys of the Commonwealth or of any county, city, town or other political subdivision thereof, including moneys of any commission, institution, committee, board or officer of the foregoing and any state, circuit, county or municipal court, which moneys are deposited in any qualified public depository in any of the following types of accounts: nonnegotiable or registered time deposits, demand deposits, savings deposits, and any other transaction accounts, and security for such deposit is required by other provisions of law, or is required due to an election of the public depositor.
"Qualified public depository" means any national
banking association, federal savings and loan association or federal savings
bank located with
one or more branches in Virginia and,
any bank, trust company or savings institution
organized under Virginia law, or any state bank or savings institution
organized under the laws of another state with one or more branches in
Virginia, that receives or holds public deposits that are secured
pursuant to this chapter.
"Default or insolvency" includes, but shall not be limited to, the failure or refusal of any qualified public depository to return any public deposit upon demand or at maturity and the issuance of an order of supervisory authority restraining such depository from making payments of deposit liabilities or the appointment of a receiver for such depository.
"Treasury Board" means the Treasury Board of the Commonwealth created by § 2.2-2415.
"Eligible collateral" means securities of the character authorized as legal investments under the laws of the Commonwealth for public sinking funds or other public funds and securities acceptable under United States Treasury Department regulations as collateral for the security of treasury tax and loan accounts and Federal Home Loan Bank letters-of-credit that adhere to the guidelines as promulgated by the Treasury Board.
"Required collateral" of a qualified public
depository means, (i) in the case of a bank, a sum equal to fifty 50 percent of the actual public
deposits not covered by federal deposit insurance held
at the close of business on the last banking day in the month immediately
preceding the date of any computation of such balance, or the average balance
of all public deposits for such preceding month, whichever is greater, and (ii)
in the case of a savings and loan association or savings bank, a sum equal to
100 percent of the average daily balance for the month immediately preceding
the date of any computation of such balance of all public deposits not
covered by federal deposit insurance held by such depository but
shall not be less than 100 percent of the public deposits held by such
depository at the close of business on the last banking day in such preceding
month.
"Treasurer" and "public depositor" means the State Treasurer, a county, city, or town treasurer or director of finance or similar officer and the custodian of any other public deposits secured pursuant to this chapter.
2. That an emergency exists and this act is in force from its passage.
Additional Data
Explanation
This is the actual text of the bill — the legislation itself. Generally this is amending existing law, proposing the addition or removal of words from laws that are already on the books.
Words that are highlighted in yellow are
proposed additions, and words that are crossed out in
red are proposed removals.
The numbers with the § symbol before them are references to existing laws, and if you click on them they’ll take you to that part of the law on the state's website.