Alabama Administrative Code › Title 892 - STATE TREASURER'S OFFICE › Chapter 892-X-1 - GENERAL INSTRUCTIONS › Section 892-X-1-.02 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
For the purpose of these general instructions, in addition to
				the other terms as defined in the SAFE Act, the following terms are defined and
				shall have such meanings given thereto below whether or not such terms appear
				as capitalized in these general instructions:
(1) "Eligible Collateral" means the types of
			 securities or investment instruments described in Section
			 41-14-35,
Code of
			 Alabama 1975
, as amended, designated as eligible collateral for
			 public deposits.
(2) "Collateral
			 Pledging Level" or "Collateral Pledging Requirement" means the percentage of
			 collateral required to be pledged by a QPD as determined in accordance with the
			 SAFE rules.
(3) "Covered Public
			 Entity" means the various governmental units of the state, counties,
			 municipalities, and other public corporations or officials subject to the
			 provisions of the SAFE Program.
(4)
			 "Letters of Credit or "LOC" means irrevocable, unconditional letters of credit
			 issued by a Federal Home Loan Bank to the Treasurer in order to secure the
			 public deposits of any QPD, to the extent permitted in accordance with the
			 provisions of this Chapter.
(5)
			 "Loss Payment Fund" means the funds that shall be dispersed as necessary to pay
			 losses to public depositors and for other purposes.
(6) "Minimum Collateral" means the minimum
			 collateral necessary to collateralize public deposits and to remain active in
			 the SAFE Program.
(7) "Nominating
			 authority" means either the Alabama Bankers Association, the League of
			 Municipalities, or the Association of County Commissions which are authorized
			 under the SAFE law to submit nominations to fill a vacancy on the SAFE Board of
			 Directors
(8) "Public Deposits"
			 means funds of any covered public entity or covered public official deposited
			 in a bank or financial institution, such as time deposit accounts, demand
			 deposit accounts, and certificates of deposit. Funds not defined as public
			 deposits include, but are not limited to, bonds, notes, money market mutual
			 funds, repurchase agreements, and similar instruments.
(9) "Qualified Public Depository" or "QPD"
			 means any bank or financial institution that meets all the requirements of the
			 SAFE Program and has been designated by the Treasurer to receive and hold
			 Public Deposits.
(10) "Recurrence"
			 means an additional occurrence of an infraction within a period of one year
			 from the date of the QPD's or Custodian's written response to the initial
			 infraction.
(11) "Required
			 Collateral" means that Eligible Collateral which is required to be pledged by a
			 QPD (or, in the case of Federal Home Loan Bank Letters of Credit, issued to the
			 Treasurer, as beneficiary) in order to satisfy the QPD's Collateral-Pledging
			 Requirement.
(12) "SAFE Board of
			 Directors" or "SAFE Board" means the Board of Directors of the SAFE program.
			 The Treasurer shall serve as Chairman of the eight-member board responsible for
			 managing the sufficiency of the SAFE Program. Other members include the
			 Superintendent of Banks, a representative of the Association of County
			 Commissions, a representative of the League of Municipalities, and four
			 representatives of the financial industry.
(13) "SAFE Program" means the Security for
			 Alabama Funds Enhancement Program encompassed in Title 41, Chapter 14A,
Code of Ala. 1975
, as amended, to provide a uniform
			 program for public fund deposits in the state with Qualifying Public
			 Depositories.
(14) "Treasurer"
			 means the State Treasurer of the State of Alabama, or the designee of the State
			 Treasurer.
(15) "Treasurer
			 Designated Custodian" means any bank or financial institution that meets all
			 the requirements of the SAFE Program that has been designated by the Treasurer,
			 and serves as a repository for Pledged Collateral, the proceeds of a draw upon
			 a LOC or the proceeds from the sale of Pledged Collateral.
Author:
Daria S. Story, Alabama State Treasurer,
				  Office of State Treasurer
Statutory Authority:
Code of Ala.
				  1975
, §§
										41-14A-1, et seq.,
				  41-14-35, as amended.