Iowa Administrative Code › Agency 781 - Treasurer of State › Chapter 13 - Deposit and Security of Public Funds in Banks › Rule 781-13.4 - Duties and Responsibilities of a Pledging Bank

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A pledging bank shall complete, sign, and
					submit to the treasurer an executed Pledge and Security Agreement.
(2) A savings and loan shall calculate and
					certify to the superintendent of banking the amount of public funds on deposit
					at the savings and loan on or before the tenth day of February, May, August,
					and November of each year as of the end of the previous calendar quarter An
					out-of-state bank that has one or more branches in Iowa shall calculate and
					certify to the superintendent of banking the amount of public funds on deposit
					at each such branch of the out-of-state bank on or before the tenth day of
					February, May, August, and November of each year as of the end of the previous
					calendar quarter.
(3) A pledging
					bank shall deposit and maintain eligible collateral with the treasurer's
					approved custodian which at all times has a total market value of not less than
					the minimum collateral market value amount.
(4) A pledging bank shall at all times be
					eligible to accept public deposits as required by Iowa Code sections
					12C.6A
					and
					12C.23A,
					subsection 1.
(5) A pledging bank
					shall grant a perfected security interest to the treasurer in all pledged
					collateral to secure the repayment of uninsured public funds deposited in a
					pledging bank and for satisfying any future assessments made against the
					pledging bank by the treasurer pursuant to Iowa Code chapter 12C. The pledging
					bank shall take all steps necessary to ensure that the treasurer has a valid,
					perfected, enforceable, first priority security interest in any pledged
					collateral. This security interest shall be perfected by entering into a Pledge
					and Security Agreement with the treasurer and by transferring the eligible
					collateral to the treasurer's approved custodian. By accepting public funds for
					deposit, a pledging bank agrees to waive any defenses it may have with respect
					to any failure of the Pledge and Security Agreement to effect a viable,
					perfected, enforceable, first priority security interest.
(6) A pledging bank shall promptly and in a
					timely manner remit to the treasurer's approved custodian payment for fees
					associated with the treasurer's approved custodian's services as safekeeping
					agent upon receipt of a statement from the treasurer's approved
					custodian.
(7) A pledging bank
					shall not utilize the services of an approved custodian in which the pledging
					bank or an affiliate has control with the possession, direct or indirect, of
					the power to direct or cause the direction of the management and policies of an
					approved custodian, including but not limited to the ownership of voting
					securities. In addition, a pledging bank shall not utilize the services of an
					approved custodian which is an office of the pledging bank or an affiliate or a
					subsidiary of the same bank holding company of which the pledging bank is a
					subsidiary or affiliate as defined in Iowa Code section
					12C.22,
					subsection 1.
(8) A pledging bank
					shall not use the safekeeping services of more than one approved custodian for
					the purposes of meeting the requirements of Iowa Code chapter 12C and this
					chapter.
(9) A pledging bank shall
					notify the treasurer and the treasurer's approved custodian, in writing or via
					the treasurer's Web site, of any change in its name or charter location prior
					to the effective date of such change.
(10) A pledging bank shall provide the
					treasurer's approved custodian with proper instructions for the delivery of
					cash and collateral which the treasurer's approved custodian has authorized for
					the release of collateral to the pledging bank.