Alabama Administrative Code › Title 892 - STATE TREASURER'S OFFICE › Chapter 892-X-1 - GENERAL INSTRUCTIONS › Appendix A - Forms

Current through Register Vol. 42, No. 9, June 28, 2024
STATE OF ALABAMA
OFFICE OF STATE TREASURER
SAFE DIVISION
AUTHORIZED REPRESENTATIVE(S) AND SIGNATURE
				CERTIFICATION
The undersigned officer/official of
				_________________________________________
(Name of Depository)
hereby certifies that the person(s) named below are duly
				empowered and authorized by the Board of Directors to represent and act on
				behalf of this Depository in any and all matters in the SAFE Program, including
				the completion of required SAFE reports, the issuance of instructions and the
				authority to enter into agreements/contracts with the State Treasurer
				concerning all cash and security transactions on behalf of this Depository.
				Once filed, the Treasurer shall accept any one of the following signatures for
				these purposes until countermanded in writing or superseded by a new
				certification.
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CERTIFICATION OF ADOPTION OF DIRECTORS' RESOLUTION (For
				use if the Depository uses FHLB Letters of Credit as Collateral)
At a duly constituted meeting of the Board of Directors
				of
___________________________, held on _________ day of
				_______________, 20___, the following resolution was adopted:
WHEREAS, ____________________________________________________, a FDIC insured depository institution, desires to be a Qualified Public
				Depository for Alabama public deposits pursuant to applicable Alabama law (the
				"SAFE Program"); and
WHEREAS, the SAFE Program applicable Alabama law requires the
				Depository to execute a Contingent Liability Agreement, Collateral
				Agreement(s), and an Authorized Representative(s) and Signature Certification
				in order to meet the requirements of a Qualified Public Depository; and
WHEREAS, the Depository also will execute a Federal Home Loan
				Bank Letters of Credit Application and Agreement Governing Use (the "LC
				Application and Agreement") in order to induce the State Treasurer of the State
				of Alabama to allow the Depository to use Federal Home Loan Bank letters of
				credit issued for the account of the Depository in connection with satisfying
				the Depository's collateral-pledging requirement under the SAFE Program.
NOW, THEREFORE, it is hereby
RESOLVED, that the Board of Directors do hereby affirm that the
				Contingent Liability Agreement, dated ___________________, all and any
				Collateral Agreements which this institution may enter into in order to hold
				public deposits of the state of Alabama under the SAFE Program, the LC
				Application and Agreement and an Authorized Representative(s) and Signature
				Certification, have been formally adopted by the Board of Directors.
FURTHER RESOLVED, that the Contingent Liability Agreement, any
				and all Collateral Agreements, the LC Application and Agreement and the
				Authorized Representative and Signature Certification, shall be an official
				record of this Depository.
I, the undersigned, Secretary of ______________________________, do hereby certify that the foregoing is a true, complete and accurate copy of
				the resolution duly adopted by the Board of Directors at a meeting held on the
				aforementioned date, at which a quorum of the directors were present; and do
				further hereby certify that the resolution has not been altered, amended,
				appealed or rescinded and is now in full force and effect.
IN WITNESS WHEREOF, I have hereunto subscribed my name and
				affixed the seal of the Depository this _________ day of _________________, 20____.
(Seal) By: _____________________________________
Secretary
CONTINGENT LIABILITY AGREEMENT
Purpose
. The purpose of this Agreement
				is to secure public deposits pursuant to the Security for Alabama Funds
				Enhancement Act, Sections 41-14A-1, et seq.,
Code of Alabama
				1975
, as amended from time to time (hereinafter the "SAFE Act")
				and any and all rules and regulations promulgated by the SAFE Board of
				Directors to implement the SAFE Act, as amended from time to time (hereinafter
				the "SAFE Rules"); the SAFE Act and the SAFE Rules being referred to
				hereinafter as the "SAFE Program."
Definitions
. Terms used herein shall
				have the definitions given them in Section 41-14A-2,
Code of
				Alabama 1975
, as amended from time to time, and the SAFE
				Rules.
Parties
. The parties (hereinafter
				"Parties") to this agreement (hereinafter "Agreement") are the State Treasurer
				(hereinafter "Treasurer"), and
				__________________________________________________ of _________________________, Alabama (hereinafter "Depository"), and ________________________________ of
				_________________________________ (hereinafter "Custodian").
NOW, THEREFORE, THIS AGREEMENT WITNESSETH:
(1) Depository represents that it is
			 authorized to receive or hold Public Deposits pursuant to the SAFE
			 Act.
(2) Custodian represents that
			 it is a bank, savings association, or trust company that meets all legal
			 requirements to be a Custodian and, is organized under Alabama law, or the laws
			 of any other state of the United States, or of the United States, and that it
			 has executed all forms required under the SAFE Program. Custodian hereby agrees
			 to be subject to the jurisdiction of the courts of Alabama, or of the courts of
			 the United States which are located within Alabama, for the purpose of any
			 litigation arising out of the SAFE Program, and represents that it has been
			 approved by the Board to act as a Custodian. Custodian agrees to advise
			 Treasurer of the receipt of Eligible Collateral (hereinafter "Collateral") as
			 directed by Treasurer and will, at the request of Treasurer, segregate
			 Collateral from other securities, if any, held by Custodian for the account of
			 the Depository. Custodian is responsible and liable to Treasurer for any action
			 of its agents used to hold and service Collateral.
(3)
(a)
			 Depository from time to time may substitute other Eligible Collateral
			 (hereinafter "Collateral") for existing Collateral (hereinafter "Substitute
			 Collateral") or increase the level of its Collateral deposit, unless prohibited
			 by Treasurer. The Collateral and Substitute Collateral, less Collateral
			 withdrawn with the consent of Treasurer, are hereinafter referred to as the
			 "Pledged Collateral."
(b) A
			 Depository may apply for approval from the Treasurer to use Federal Home Loan
			 Bank Letters of Credit ("FHLB L/Cs") as Eligible Collateral by completing,
			 signing and submitting a Federal Home Loan Bank Letters of Credit Application
			 for Approval and Agreement Governing Use ("LC Application and Agreement"). If
			 approved, the use of FHLB L/Cs as Eligible Collateral by Depository will be
			 subject to all of the provisions, requirements, conditions, limitations and
			 restrictions of the LC Application and Agreement, the SAFE Act and the SAFE
			 Rules, as well as any additional requirements, conditions, limitations and
			 restrictions prescribed by the Treasurer. No substitution of any FHLB L/C for
			 any other Collateral shall be effective unless and until the Treasurer has
			 received the properly executed FHLB L/C or approved amendment to an existing
			 FHLB L/C complying with the requirements of paragraph (7) of Rule 892-X-1-.18,
			 the L/C Application and Agreement and this Agreement. No substitution, in whole
			 or in part, of any Collateral for any FHLB L/C held by the Treasurer shall be
			 effective unless and until the Custodian has acknowledged to the Treasurer in
			 writing the Custodian's receipt of the substitute Collateral and the Treasurer
			 has accepted the substitute Collateral as Eligible Collateral and, as
			 applicable, returned the FHLB L/C to the Federal Home Loan Bank that issued it
			 or accepted in writing the amendment to the FHLB L/C evidencing the
			 corresponding reduction in the face amount of the FHLB L/C.
(c) The Pledged Collateral shall be held for
			 the benefit of the Loss Payment Fund and all Pledged Collateral other than FHLB
			 L/Cs shall be pledged to the State Treasurer.