Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 4 - TREASURY ADMINISTRATION › Subchapter A - POOLED COLLATERAL PROGRAM › Section 4.104 - Depository Institution Application Process

Current through Reg. 49, No. 28; July 12, 2024
(a) The comptroller will post on its website
				  the depository institution application, collateral security agreement, related
				  documents, and guidance for application and participation in the pooled
				  collateral program.
(b) The
				  comptroller's approval of a depository institution's participation in the
				  pooled collateral program is effective for two years from September 1 of each
				  odd-numbered year until August 31st of the next odd-numbered year. A depository
				  institution may apply for approval every two years in the pooled collateral
				  program, according to the instructions posted on the comptroller's website, but
				  may also apply at any time during the two-year period.
(c) The comptroller will notify a
				  participating depository institution of the deadline for application by June
				  1st of each odd-numbered year. A depository institution must apply by August
				  1st of each odd-numbered year for the comptroller's approval to be effective
				  for September 1 of each odd-numbered year for the next two-year term.
(d) The parent institution of a depository
				  institution must apply to be a participating depository institution and be
				  approved if deposits are to be held in any of its Texas branch locations.
				  Branch institutions may not apply. The parent institution may apply for
				  approval by submitting a completed application and executed collateral security
				  agreement to the comptroller at any time.
(e) Once a depository has been approved for
				  participation in the pooled collateral program, it will submit each new
				  collateral security agreement with a public entity to the comptroller for
				  approval before accepting its deposits as part of the pooled collateral program
				  and in accordance with the comptroller's instructions on its website.
(f) A successor institution to a
				  participating depository institution must apply for approval to act as a
				  depository institution and comply with pooled collateral program law, rules and
				  requirements as soon after the change in ownership as is practicable.
(g) The comptroller at its discretion may
				  require the participating depository institution to update the application form
				  and collateral security agreement.
(h) If the depository institution has been
				  approved for participation, the comptroller will notify the depository
				  institution and the public entity. The comptroller will provide them both with
				  instructions and requirements for participation in the pooled collateral
				  program, including access to the pooled collateral program website.
(i) If the depository institution has not
				  been approved for participation, the comptroller will notify it in writing of
				  the reason for disapproval. If the applicant that was not approved was a
				  participating depository institution, it will comply with the requirements of
				  §
										4.106(b)
				  of this title (relating to Voluntary Withdrawal from the Pooled Collateral
				  Program) for the orderly withdrawal from the pooled collateral program within
				  ninety days of the comptroller's written disapproval.
(j) Within thirty days after the written
				  disapproval of its application an applicant may request an informal review in
				  writing. The applicant must include the basis for its request and submit
				  evidence that it cured any deficiency in its application. The comptroller will
				  conduct an informal review based on the applicant's written submission. Except
				  as provided in subsection (i) of this section for a participating depository
				  institution, an applicant may not act as a depository institution in the
				  program during the informal review process.
(k) The agency's decision in the informal
				  review is a final decision.
(l)
				  After the informal review process is complete, an applicant that has been
				  disapproved for a deficiency may reapply to act as a depository institution
				  once the deficiency in its application has been cured; however an applicant
				  that has been disapproved for violation of §
										4.118
				  of this title (relating to Administrative Penalties for Noncompliance by
				  Participating Depository Institution) would not be considered eligible to apply
				  to act as a depository institution until the next odd-numbered year.