All financial institutions (FIs)
participating in OPCP shall:
(A) All financial institutions
participating in OPCP shall:
(1)(A) Transmit
the required files to OPCS, including, but not limited to, up to three
files
OPCS every day the federal reserve
is open for business;
business.
(B)
Report any public
unit (PU) negotiated collateral requirement at an account
level.
(2)(C) Pledge sufficient
collateral when uninsured public deposits are
received;
received.
(a)(1)
The treasurer of state will estimate the federal deposit insurance corporation
insurance (FDIC) coverage amount, which may
deviate from the actual
federal deposit insurance corporation
insurance
FDIC limits.
(b)(2) A
financial institution
FI must address collateral deficiencies in
accordance with the operating policies.
(3)(D) Pledge eligible
collateral
to the treasurer of state with a
qualified trustee to secure
the FI's public
deposits;
deposits.
(a)(1) The trustee shall
identify and hold collateral pledged to the treasurer
of state for the benefit of public units
(PUs) with deposits in the respective
financial institution
FI.
(b)(2) The trustee shall
hold all collateral pledged to the treasurer of
state in one or more identifiable pooled collateral accounts for each
financial institution
FI, as specified by the treasurer.
of
state.
(c)(3) A
financial institution
FI will pledge collateral to the treasurer
of state with a trustee as required, and
the trustee will inform the treasurer
of
state of all new pledges.
(i)(a) The treasurer
of state will not accept any statement,
communication, or notice from a financial
institution
FI as evidence of pledged
collateral.
(ii)(b) The treasurer
of state will only update OPCS records on
receipt of documentation submitted by the trustee.
(E)
Monitor pledged collateral and submit a collateral release
request to the treasurer in advance of the maturity date of the pledged
collateral.
(4)(F) Submit a collateral
release request to the treasurer
of state
in order to have pledged collateral released by the
trustee;
trustee.
(a)(1) A
trustee will only release collateral on the instruction of the treasurer,
of state, and
will not accept requests directly from a financial
institution
FI.
(b)(2)
Acceptance or denial of a release of collateral request will occur as
determined by the treasurer.
of state.
(5)(G)
Not pledge, combine, cross-collateralize, or aggregate pledged collateral in
one pool in OPCP for either another pool in OPCP or for the benefit of any
other
party;
party.
(6) Monitor pledged collateral and
submit a collateral release request to the treasurer of state in advance of the
maturity date of the pledged collateral;
(7)(H) Be
subject to ongoing monitoring for compliance of collateral sufficiency
requirements and file submission
requirements;
requirements.
(a)(1) If the treasurer
of state determines a
financial institution
FI is not in compliance with the operating
policies, collateral sufficiency requirements, or file submission requirements,
then the treasurer of state may impose a
cushion collateral requirement.
(b)(2) Upon entrance into
OPCS, the cushion collateral requirement will have a default value of zero.
(8) Report any public unit
negotiated collateral requirement at an account level.
