Bill > HB1313

This bill modifies Missouri's regulations for securing public funds in banks by introducing a new "single bank pooled method" as an alternative to direct security pledging. Under this method, banks can secure public funds deposited by governmental entities by granting a security interest in a pool of securities, rather than pledging collateral for each individual entity separately. The Director of the Division of Finance will appoint an administrator to oversee this pooled method, who will act as an agent for banking institutions and a nominee for government entities. The pool of securities must always have an aggregate market value of at least 102% of the uninsured deposit amount, and banks must maintain daily accounting records of the total public funds to be secured and the market value of pledged securities. Banks can choose between the direct method of securing funds (as previously established in Chapter 110) or this new pooled method, and must notify the administrator if they elect to use the pooled approach. In the event of a bank's failure, the administrator will direct the sale or transfer of pledged securities to cover uninsured public fund deposits. Only securities listed in section 30.270 will be eligible as collateral, and the administrator will establish procedures for monitoring and managing the security pool.

https://house.mo.gov/Bill.aspx?bill=HB1313&year=2025&code=R