Bill > H1209

This bill establishes a structure for qualifying public depositories and rules for the collaterizing of public deposits. The key provisions are: 1. Public depositors (state and local government officials) can deposit public monies in qualified depository banks, which are FDIC-insured banks and other financial institutions approved by the state treasurer. The aggregate balance in any one qualified depository bank cannot exceed 55% of the bank's paid-up capital, surplus, capital notes, and undivided profits. 2. All public deposits must be secured through collateral, letters of credit from a federal home loan bank, or membership in deposit insurance funds. The collateral must be at least 102% of the uninsured portion of the public deposit. 3. The state treasurer is given the authority to promulgate rules and regulations to implement these provisions, and the commissioner of the Department of Revenue may also issue rules subject to the state treasurer's approval. 4. Penalties are established for public officials and depositories that violate these requirements, including disqualification from receiving public deposits or entering into contracts with the state and local governments. The bill aims to provide more security for public deposits held in qualified banks and other financial institutions.

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https://malegislature.gov/Bills/192/H1209