Iowa Administrative Code › Agency 781 - Treasurer of State › Chapter 13 - Deposit and Security of Public Funds in Banks › Rule 781-13.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
As used in this chapter:
"Approved custodian "
means a financial
						institution that has facilities for the safekeeping of securities and that has
						been approved under this chapter by the treasurer of state to serve as the
						treasurer's agent in safekeeping collateral pledged to the treasurer of state
						to secure uninsured deposits of public funds.
"Bank"
means "bank" as defined in Iowa Code
						section
						12C.1,
						subsection (2a).
"Control, "
including controlling, controlled
						by, and under common control, shall be presumed to exist if a pledging bank,
						directly or indirectly, owns, controls, holds with the power to vote, or holds
						proxies representing, 10 percent or more of the voting securities of any
						approved custodian. Control, including controlling, controlled by, and under
						common control, shall also be presumed to exist if an approved custodian,
						directly or indirectly, owns, controls, holds with the power to vote, or holds
						proxies representing, 10 percent or more of the voting securities of any
						pledging bank.
"Eligible collateral"
means any one or any
						combination of the securities or other forms of collateral as described in Iowa
						Code section
						12C.22,
						subsection 6, and acceptable to the treasurer Cash shall be considered eligible
						collateral.
"Excess public funds"
means:
1. For a bank, the amount by which the public
					funds deposited by a public unit having an aggregate market value plus accrued
					interest that exceeds the total capital of the bank as defined in Iowa Code
					section
					12C.22,
					subsection 2.
2. For an
					out-of-state bank, the amount by which the public funds deposited by a public
					unit in an Iowa branch of the out-of-state bank having an aggregate market
					value plus accrued interest that exceeds the Iowa branch capital of the
					out-of-state bank as determined under Iowa Code section
					12C.22,
					subsection 3.
"Letter of Credit"
means an irrevocable and
						nontransferable Letter of Credit, upon which the payment of principal and
						interest is fully secured or guaranteed by the United States of America or an
						agency or instrumentality of the United States of America or in the form
						prescribed by the treasurer as provided on the treasurer's Web
						atwww.treasurer.state.ia.us [File Link Not Available] or in the treasurer's
						office pursuant to rule
						781-13.3 (12C). Letters of
						Credit will be held in the treasurer's vault.
"Market value "
means the value of a pledged
						security calculated by the treasurer or the treasurer's designee using the
						average of the closing bid and ask price from a nationally recognized pricing
						source (including but not limited to the Wall Street Journal, Bloomberg
						Financial Markets, Telerate, Renter's, or a nationally recognized broker
						dealer). If no nationally recognized pricing source is available, the market
						value shall mean pricing in a commercially reasonable manner or manner
						consistent with standard industry practices. Market value does not include
						accrued interest.
"Minimum collateral market value amount"
means
						the minimum dollar amount of eligible collateral required to be pledged by a
						pledging bank to the treasurer to secure all uninsured public funds which shall
						at all times equal or exceed excess public funds.
"Out-of-state bank"
means a bank that is
						chartered in a state other than Iowa and operates one or more branches in
						Iowa.
"Pledged collateral"
or
"pledged
						securities "
means eligible collateral pledged by the pledging bank
						under the Master Custodial Agreement for the Deposit of Public Funds in Banks,
						the Pledge and Security Agreement, and any collateral additions or
						substitutions thereto evidenced by a joint receipt of custody or other evidence
						of control acceptable to the treasurer.
"Pledging bank"
means a bank that is required
						to pledge eligible collateral pursuant to Iowa Code section
						12C.22
						and this chapter
"Public funds"
or
"public
						deposits"
means "public funds" or "public deposits" as defined in Iowa
						Code section
						12C.1,
						subsection (2e).
"Public units "
means the state or a political
						subdivision or instrumentality of the state including a county, school
						corporation, special district, drainage district, unincorporated town or
						township, municipality, or municipal corporation or any agency, board, or
						commission of the state or a political subdivision; any court or public body;
						an electric power agency; federal and state grant moneys of a quasi-public
						state entity under Iowa Code section
						12C.1,
						subsection (2e), and this chapter Public units additionally include, but are
						not limited to:
1. Transit
					authorities.
2. Municipal housing
					programs.
3. Solid waste
					agencies.
4. Waterworks.
5. City cemeteries.
6. County fair boards.
7. Regional planning agencies.
8. County care facilities.
9. County conservation boards.
10. Sanitary districts.
11. Iowa family farm development
					authority.
12. Iowa railway finance
					authority.
13. State board of
					regents.
14. State fair
					board.
15. State racing and gaming
					commission.
16. Iowa college
					student aid commission.
17. Iowa
					higher education loan authority.
18. Area education agencies.
19. Community action programs.
20. Community colleges.
Federal agencies, or political subdivisions thereof, are not
						public units under this chapter Cooperatives, police and fire pension funds
						deposited for the benefit of the beneficiaries and fully covered by federal
						insurance, and bond sinking funds deposited pursuant to a bond covenant and
						which are fully covered by federal insurance are not public units.
"Rate-setting notice "
means the monthly
						electronic posting of minimum deposit rates to public units by the rate-setting
						committee.
"Superintendent"
means the superintendent of
						banking of the state of Iowa.
.
"Treasurer "
means the treasurer of the state
						of Iowa.
"Uninsured public funds"
or
"uninsured
						public deposits"
means any amount of public funds of a public funds
						depositor on deposit in an account at a financial institution that exceeds the
						amount of public funds in that account that are insured by the Federal Deposit
						Insurance Corporation.