Bill > H1113

This bill establishes a structure for qualifying public depositories and rules for the collateralization of public deposits. Key provisions include: - Public depositors can deposit public monies in qualified depository banks, defined as FDIC-insured banks and other financial institutions designated by the state treasurer. The aggregate balance deposited by state and local government entities in any one qualified depository bank cannot exceed 55% of the bank's capital, surplus, and undivided profits. - All public deposits must be secured through collateral, letters of credit from a Federal Home Loan Bank, or membership in deposit insurance funds. The bill sets forth the authorized methods for securing public deposits, including minimum collateral requirements. - The state treasurer is granted rulemaking authority to implement the provisions of the bill and determine acceptable forms of collateral. The commissioner of the Department of Revenue may also promulgate rules, subject to the state treasurer's approval. - Penalties are established for public officers who knowingly make deposits in violation of the law, as well as for depository institutions that knowingly receive such deposits.

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https://malegislature.gov/Bills/191/H1113