Fla. Admin. Code Ann. R. 69C-2.024 - Criteria for Assigning Minimum Pledge Percentages

(1) Entry, withdrawal, and continued participation in the public deposits program will be based, in part, on the overall financial condition of an applicant or a qualified public depository.

(2) The overall financial condition of an applicant or a qualified public depository is determined by an analysis of:

(a) ratios derived from the institution's Call Report or 5300 Call Report;

(b) trends experienced by the institution;

(c) the institution's average financial condition rating from two nationally recognized financial rating services, published quarterly; and

(d) any other information relating to the institution that the Chief Financial Officer determines pertinent.

(3) Except as provided in section 280.04, F.S., the following numerical parameters for entry, withdrawal, and collateral pledging levels will apply for an applicant or a qualified public depository. Using a scale of zero (0) to 100, an institution with a quarterly average combined rating over the four most recent quarters of:

(a) 20 or more, may join the public deposits program.

(b) Zero (0) through 15 must withdraw from the public deposits program or meet the following conditions pursuant to an alternative participation agreement through Form DFS-J1-1518, Alternative Participation Agreement, effective 09/24, incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-17025, as an alternative to withdrawing:

1. establish a maximum amount of public deposits the institution may hold, which is mutually agreed upon by and between the Chief Financial Officer and the institution;

2. deposit or pledge eligible collateral equal to one hundred and fifty percent (150%) of the amount of public deposits agreed to pursuant to subparagraph 1;

3. if required by the Chief Financial Officer pursuant to section 280.041(6), F.S., use a Chief Financial Officer's custodian to safekeep all required collateral and be bound by a Chief Financial Officer's custodial contract as directed by the Chief Financial Officer; and

4. submit each month, and whenever requested by the Chief Financial Officer, a schedule listing all public deposits accounts and balances held for the credit of all public depositors.

(c) 16 through 29 must pledge collateral at a one hundred and ten percent (110%) level.

(d) at the discretion of the Chief Financial Officer, 30 through 69 may pledge collateral at a fifty percent (50%) level.

(e) at the discretion of the Chief Financial Officer, 70 and above may pledge collateral at a twenty-five percent (25%) level.

(4) On a quarterly basis, the Chief Financial Officer will review the average rating of each qualified public depository and will notify each qualified public depository whose collateral pledging level and requirements has changed, and any other action required or relevant to the institution's continued participation in the public deposits program.

(5) The Chief Financial Officer may assign a collateral pledging level that differs from those recommended in paragraph (3) where:

(a) the Chief Financial Officer's analysis indicates that a qualified public depository's current financial condition is either stronger or weaker than the latest average financial condition rating indicates;

(b) a qualified public depository is subject to a regulatory or enforcement action that cites safety and soundness considerations;

(c) a qualified public depository violates any provision of chapter 280, F.S. or this rule chapter;

(d) a material event occurred involving the qualified public depository or the banking sector as a whole that threatens the integrity of the public deposits program; or

(e) the Chief Financial Officer deems the exception necessary pursuant to section 280.05, F.S.

Notes

Fla. Admin. Code Ann. R. 69C-2.024

Rulemaking Authority 280.04(1), 280.19 FS. Law Implemented 280.04, 280.05(6), 280.16, 280.17 FS.

New 1-23-91, Amended 7-12-92, Formerly 4C-2.024, Amended by Florida Register Volume 50, Number 231, November 26, 2024 effective 12/9/2024.

New 1-23-91, Amended 7-12-92, Formerly 4C-2.024.