Ohio Administrative Code › Title 113 - Treasurer of State › Chapter 113-40 - Collateral Requirement › Section 113-40-01 - Definitions

Current through all regulations passed and filed through July 1, 2024
As used in this chapter:
(A) "Bank monitoring"
			 means the 
								process used to identify an emerging individual
			 financial concern or a deposit business concern for a
			 
								FI approved for a reduced collateral floor.
(B) "Bank monitoring
			 collateral requirement" means an additional collateral requirement that may be
			 imposed on a FI approved for a reduced collateral floor if an emerging
			 individual financial concern or a deposit business concern is
			 identified.
(C)
								"Basis point" means a simplified unit of measure used
			 in finance. One basis point equals one one-hundredth of one per cent.
(D) "Collateral
			 requirement calculation" means the mandatory amount of collateral for a
			 
								FI participating in OPCP, as determined in OPCS
			 based upon the following factors: account balances; federal deposit insurance
			 corporation coverage as determined pursuant to paragraph (C)(1) of rule
			 113-40-02 of the Administrative
			 Code, which may deviate from actual federal deposit insurance corporation
			 limits; statutory collateral requirement; reduced collateral floor; any bank
			 monitoring collateral requirement(s); any economic monitoring collateral
			 requirement(s); any 
								PU negotiated collateral requirement(s); and any
			 cushion collateral requirement(s).
(E) "Collateral
			 sufficiency" means the determination made by the treasurer of state on whether
			 a 
								FI is adequately collateralized based upon the
			 collateral requirement calculation and the collateral valuation.
(F)
			 "Collateral valuation" means the market value of eligible collateral pledged by
			 a 
								FI.
(G) "Cushion collateral
			 requirement" means an additional collateral requirement that may be imposed by
			 the treasurer of state on a 
								FI that is not in compliance
			 with collateral sufficiency requirements, file submission requirements, or the
			 OPCS operating policies.
(H) "Economic
			 monitoring" means macroeconomic monitoring and regional economic monitoring
			 under paragraph (B) of rule 113-40-04 of the Administrative Code.
(I)
			 "Economic monitoring collateral requirement" means an additional collateral
			 requirement that may be imposed on a 
								FI approved for a
			 reduced collateral floor if economic monitoring identifies a potential
			 concerning economic trend.
(J) "Financial
			 institution" (FI) means
			 
								a
			 state-chartered or national bank designated as a public depository
			 pursuant to section 135.01 of the Revised Code, and
			  which receives or holds any
			 public deposits as defined in section
			 135.31 of the Revised Code, or
			 which receives or holds any funds from a public depositor as defined in
			 division (A)(2) of section
			 135.182 in the Revised Code.
(K)
			 "Ohio pooled collateral program" (OPCP) means the program, created by the
			 treasurer of state pursuant to division (B)(1) of section
			 135.182 of the Revised Code, in
			 which each 
								FI that selects the pledging method prescribed in
			 division (A)(2) of section
			 135.18 of the Revised Code or
			 division (A)(2) of section
			 135.37 of the Revised Code,
			 shall pledge to the treasurer of state a pool of eligible securities for the
			 benefit of all public depositors at the public depository to secure the
			 repayment of uninsured public deposits at the public depository, and, if
			 applicable, collateral dedicated to a specific public depositor, provided that
			 the total market value of the securities so pledged is at least equal to the
			 amounts required by section
			 135.182 of the Revised
			 Code.
(L) "Ohio pooled
			 collateral system" (OPCS) means the system created and maintained by the
			 treasurer of state to facilitate 
								FI and
			 
								PU participation in OPCP .
(M) "Operating
			 policies" means the set of operational procedures, policies, and requirements
			 for the use of 
								OPCS. All
			 participation in OPCP and use of OPCS shall be subject to the operating
			 policies, which are maintained at the sole
			 discretion of the treasurer of state. The operating policies
			 
								are
			 available at
www.tos.ohio.gov
.
(N) "Public deposits"
			 means moneys of a public depositor as defined in division (A)(3) of section
			 135.182 of the Revised Code, but
			 for the purposes of this chapter herein, does not include the moneys of
			 metropolitan housing authorities, public or Indian housing agencies, or United
			 States federal agencies.
(O) "Public unit"
			 (PU) means the state or a subdivision thereof, as
			 applicable, that deposits public deposits with a 
								FI.
(P) "Public unit
			 negotiated collateral requirement" means a collateral requirement negotiated by
			 a 
								PU with its 
								FI, which may differ from
			 the statutory collateral requirement.
(Q)
								"Qualified
			 trustee" means a bank or institution that meets the requirements set forth in
			 division (J) of section
			 135.18 of the Revised
			 Code.
(R) "Reduced
			 collateral floor" means a collateral requirement available to eligible
			 
								FI pursuant to division (B)(1)(b) of section
			 135.182 of the Revised Code. A
			 
								FI reduced collateral floor will be determined in
			 accordance with rules
			 113-40-03 to 113-40-05 of the
			 Administrative Code.
(S) "Specific pledge
			 method" means the method of separately securing uninsured public deposits of
			 each public depositor, as prescribed in division (A)(1) of section
			 135.18 of the Revised
			 Code.
(T) "Specific pledge
			 account" (SPA) means an account containing a
			 security or securities pledged for the benefit of one specific
			 
								PU by a 
								FI participating in the
			 pooling method. A 
								FI may be permitted to use a
			 
								SPA if: the charter for the
			 
								PU requires use of the specific pledge method; United
			 States federal law designates the specific pledge method for the
			 
								PU; or it is permitted at the discretion of the
			 treasurer of state. Under this method, the 
								FI will secure all uninsured
			 deposits in the SPA at least equal to the
			 requirement for the specific pledge method.
(U)
								
								"Standard" means a
			 specific financial indicator with a defined benchmark that must be met by a FI
			 in order to be approved for a reduced collateral floor.