Bill > H586

This bill establishes a structure for qualifying public depositories and rules for the collateralizing of public deposits. Key provisions include: - Public deposits may be held in "qualified depository banks" designated by the state treasurer, with limits on the amount that can be deposited in any one bank. - Public deposits must be secured through eligible collateral, letters of credit from federal home loan banks, or membership in deposit insurance funds. - The state treasurer is given rulemaking authority to determine eligible collateral and other security methods. - Penalties are imposed for public officials who violate the deposit security requirements, including disqualification from receiving public deposits or contracting with the state. - The bill also amends existing law governing municipal deposits to align with the new public deposit security requirements. The bill aims to ensure the security of public funds held in depositories by establishing a comprehensive framework for collateralization and oversight.

Business and Industry

https://malegislature.gov/Bills/190/H586