Ohio Admin. Code 113-40-03 - Reduced collateral floor application and maintenance criteria
(A)
A financial institution (FI) that has been in OPCP for
four quarters may apply for a reduced collateral floor by submitting an
application to the treasurer of state.
(1)
If the treasurer
approves the application, it will set the reduced collateral floor in OPCS.
However, if the public unit (PU) has negotiated a higher collateral requirement
for an account, the PU negotiated collateral requirement will take
precedence.
(2)
If the treasurer does not approve the application, the
FI will be notified.
(B)
Upon receipt of
the application for a reduced collateral floor , and as part of the ongoing
monitoring process, the treasurer shall use data only from rating agencies,
regulatory bodies, reports filed with the federal deposit insurance corporation
(FDIC), and publicly available sources to initially approve the reduced
collateral floor , and subsequently maintain that approval, for a FI. The
performance of the FI evaluation does not imply or construe that the treasurer
is a de facto ratings agency.
(C)
To be initially
approved for a reduced collateral floor , a FI must meet the following
criteria:
(1)
Not be a de novo bank, as reported by the
FDIC;
(2)
Be in good standing with government regulators with
respect to their deposit business;
(3)
Not receive or
have on deposit at any one time public moneys, including public moneys as
defined in section 135.31 of the Revised Code, in
an aggregate amount in excess of thirty per cent of its total assets, pursuant
to section 135.03 of the Revised
Code;
(4)
Meet the standards determined by the treasurer that
demonstrate capital adequacy, bank management, safety, and soundness as set
forth in the operating policies for the current and preceding four quarters;
and
(5)
Have substantially complied with OPCS and OPCP
guidelines and operating policies for the current and preceding four
quarters.
(D)
If a FI meets the foregoing criteria, but the treasurer
has identified adverse macroeconomic or regional economic trends or indicators
pursuant to the monitoring protocols of rule
113-40-04 of the Administrative
Code, then the reduced collateral floor approval may be withheld at the sole
discretion of the treasurer.
Replaces: 113-40-03, 113-40-04
Notes
Promulgated Under: 119.03
Statutory Authority: R.C. 135.182
Rule Amplifies: R.C. 135.18, R.C. 135.182
Prior Effective Dates: 08/06/2017
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(A) A financial institution may apply for a reduced collateral floor when they apply for OPCP or following its application to OPCP.
(1) A financial institution must submit an application for a reduced collateral floor to the treasurer of state.
(a) If the treasurer of state approves the application, it will set the reduced collateral floor in OPCS.
(b) If the treasurer of state does not approve the application, it will notify the financial institution.
(2) If the public unit negotiated collateral requirement is higher than the reduced collateral floor, the public unit negotiated collateral requirement will take precedence.
(B) In addition to the criteria listed herein, an eligible financial institution must abide by rule 113-40-02 of the Administrative Code and this rule in order to meet the safety and soundness standards of a public depository in accordance with division (B)(1)(b) of section 135.182 of the Revised Code.
(C) Notwithstanding any additional collateral requirements as further detailed herein, a financial institution approved for a reduced collateral floor shall initially be required to secure all uninsured public deposits at least equal to fifty per cent.
(D) A financial institution approved for a reduced collateral floor shall not be able to use the reduced collateral floor until it has participated in OPCP for at least thirty calendar days.
Notes
Promulgated Under: 119.03
Statutory Authority: 135.182
Rule Amplifies: 135.18, 135.182