Iowa Administrative Code › Agency 781 - Treasurer of State › Chapter 13 - Deposit and Security of Public Funds in Banks › Rule 781-13.6 - Duties and Responsibilities of an Approved Custodian

Current through Register Vol. 47, No. 3, July 24, 2024
(1) An approved custodian shall accept only
					eligible collateral as defined in Iowa Code section
					12C.22.
					Cash shall be considered eligible collateral.
(2) An approved custodian shall segregate all
					collateral, maintaining open, notorious, continuous, active and exclusive
					possession of the collateral for the sole and exclusive benefit of the
					treasurer as an agent for public units.
(3) An approved custodian shall permit the
					withdrawal, substitution, and addition of eligible pledged securities and other
					eligible pledged collateral upon receipt of the Certificate and Approval for
					Withdrawal, Substitution or Addition of Collateral form from the pledging bank.
					However, before the approved custodian may act upon the written request of the
					pledging bank, the approved custodian shall verify that the pledging bank has
					completed and signed the above form and that the calculation of its total
					collateral market value, after the current withdrawals, substitutions, or
					additions, is equal to or exceeds its current total excess public
					funds.
(4) An approved custodian
					shall issue to the treasurer, by regular mail on the same day, a joint receipt
					specifically describing and identifying any substituted or additional
					securities or other collateral pledged to the treasurer
(5) An approved custodian shall establish a
					fee schedule for its services. Any and all such fees shall be the sole
					responsibility of, and be billed directly to, the respective pledging bank.
					Under no circumstances will the treasurer be responsible or liable for any
					fees, charges, or expenses of an approved custodian.
(6) In the event that the treasurer notifies
					an approved custodian of the default of a pledging bank, the approved custodian
					shall thereafter act only upon the treasurer's instructions with regard to any
					pledged collateral, cash, and Letters of Credit.
(7) An approved custodian shall, no later
					than the twentieth day following the end of a calendar quarter, provide a
					written report to the treasurer in a format approved by the treasurer The
					following items shall be provided for each pledging bank for which it serves as
					approved custodian:
a. The pledging bank's
					name and its location.
b. An
					inventory of all pledged collateral, as of the last day of the calendar
					quarter, which provides the CUSIP (the industry's numerical identification code
					given to each class and issue of security), description, coupon, maturity date,
					par amount, and market value of each security pledged by each pledging
					bank.
c. The total par amount and
					the total market value of all pledged collateral as of the last day of the
					calendar quarter for each pledging bank.
d. A history providing the CUSIP,
					description, coupon, maturity date, par amount, market value and date of all
					additions, substitutions and withdrawals of pledged collateral during the
					calendar quarter for each pledging bank.