1 | A bill to be entitled |
2 | An act relating to public depositories; amending s. |
3 | 280.02, F.S.; revising definitions applicable to the |
4 | Florida Security for Public Deposits Act; amending ss. |
5 | 280.03, 280.052, 280.053, 280.07, 280.10, and 280.13, |
6 | F.S.; conforming terminology to changes made by the |
7 | act; amending s. 280.16, F.S.; revising credit union |
8 | reporting requirements; amending s. 280.17, F.S.; |
9 | revising evidence of insurance required to be |
10 | submitted by a public depositor to the Chief Financial |
11 | Officer; providing an effective date. |
12 |
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13 | Be It Enacted by the Legislature of the State of Florida: |
14 |
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15 | Section 1. Subsections (6), (9), (23), and (26) of section |
16 | 280.02, Florida Statutes, are amended to read: |
17 | 280.02 Definitions.-As used in this chapter, the term: |
18 | (6) "Capital account" means total equity capital, as |
19 | defined on the balance-sheet portion of the Consolidated Reports |
20 | of Condition and Income (call report), the National Credit Union |
21 | Administration 5300 Call Report, or the Thrift Financial Report, |
22 | less intangible assets, as submitted to the regulatory financial |
23 | banking authority. |
24 | (9) "Custodian" means the Chief Financial Officer or any |
25 | financial institution bank, savings association, or trust |
26 | company that: |
27 | (a) Is organized and existing under the laws of this |
28 | state, any other state, or the United States; |
29 | (b) Has executed all forms required under this chapter or |
30 | any rule adopted hereunder; |
31 | (c) Agrees to be subject to the jurisdiction of the courts |
32 | of this state, or of courts of the United States which are |
33 | located within this state, for the purpose of any litigation |
34 | arising out of this chapter; and |
35 | (d) Has been approved by the Chief Financial Officer to |
36 | act as a custodian. |
37 | (23) "Public deposit" means the moneys of the state or of |
38 | any state university, county, school district, community college |
39 | district, special district, metropolitan government, or |
40 | municipality, including agencies, boards, bureaus, commissions, |
41 | and institutions of any of the foregoing, or of any court, and |
42 | includes the moneys of all county officers, including |
43 | constitutional officers, that are placed on deposit in a |
44 | financial institution bank, savings bank, or savings association |
45 | and for which the financial institution bank, savings bank, or |
46 | savings association is required to maintain reserves. This |
47 | includes, but is not limited to, time deposit accounts, demand |
48 | deposit accounts, and nonnegotiable certificates of deposit. |
49 | Moneys in deposit notes and in other nondeposit accounts such as |
50 | repurchase or reverse repurchase operations are not public |
51 | deposits. Securities, mutual funds, and similar types of |
52 | investments are not considered public deposits and shall not be |
53 | subject to the provisions of this chapter. |
54 | (26) "Qualified public depository" means any financial |
55 | institution bank, savings bank, or savings association that: |
56 | (a) Is organized and exists under the laws of the United |
57 | States, the laws of this state, or the laws of any other state |
58 | or territory of the United States. |
59 | (b) Has its principal place of business in this state or |
60 | has a branch office in this state which is authorized under the |
61 | laws of this state or of the United States to receive deposits |
62 | in this state. |
63 | (c) Is insured by the Federal Deposit Insurance |
64 | Corporation or the National Credit Union Share Insurance Fund |
65 | Has deposit insurance under the provision of the Federal Deposit |
66 | Insurance Act, as amended, 12 U.S.C. ss. 1811 et seq. |
67 | (d) Has procedures and practices for accurate |
68 | identification, classification, reporting, and collateralization |
69 | of public deposits. |
70 | (e) Meets all the requirements of this chapter. |
71 | (f) Has been designated by the Chief Financial Officer as |
72 | a qualified public depository. |
73 | Section 2. Paragraph (a) of subsection (3) of section |
74 | 280.03, Florida Statutes, is amended to read: |
75 | 280.03 Public deposits to be secured; prohibitions; |
76 | exemptions.- |
77 | (3) The following are exempt from the requirements of, and |
78 | protection under, this chapter: |
79 | (a) Public deposits deposited in a financial institution |
80 | bank or savings association by a trust department or trust |
81 | company which are fully secured under trust business laws. |
82 | Section 3. Subsection (1) of section 280.052, Florida |
83 | Statutes, is amended to read: |
84 | 280.052 Order of suspension or disqualification; |
85 | procedure.- |
86 | (1) The suspension or disqualification of a financial |
87 | institution bank or savings association as a qualified public |
88 | depository must be by order of the Chief Financial Officer and |
89 | must be mailed to the qualified public depository by registered |
90 | or certified mail. |
91 | Section 4. Paragraph (c) of subsection (1) and paragraph |
92 | (c) of subsection (2) of section 280.053, Florida Statutes, are |
93 | amended to read: |
94 | 280.053 Period of suspension or disqualification; |
95 | obligations during period; reinstatement.- |
96 | (1) |
97 | (c) Upon expiration of the suspension period, the |
98 | financial institution bank or savings association may, by order |
99 | of the Chief Financial Officer, be reinstated as a qualified |
100 | public depository, unless the cause of the suspension has not |
101 | been corrected or the financial institution bank or savings |
102 | association is otherwise not in compliance with this chapter or |
103 | any rule adopted pursuant to this chapter. |
104 | (2) |
105 | (c) Upon expiration of the disqualification period, the |
106 | financial institution bank or savings association may reapply |
107 | for qualification as a qualified public depository. If a |
108 | disqualified financial institution bank or savings association |
109 | is purchased or otherwise acquired by new owners, it may reapply |
110 | to the Chief Financial Officer to be a qualified public |
111 | depository prior to the expiration date of the disqualification |
112 | period. Redesignation as a qualified public depository may occur |
113 | only after the Chief Financial Officer has determined that all |
114 | requirements for holding public deposits under the law have been |
115 | met. |
116 | Section 5. Section 280.07, Florida Statutes, is amended to |
117 | read: |
118 | 280.07 Mutual responsibility and contingent liability.-Any |
119 | financial institution bank or savings association that is |
120 | designated as a qualified public depository and that is not |
121 | insolvent shall guarantee public depositors against loss caused |
122 | by the default or insolvency of other qualified public |
123 | depositories. Each qualified public depository shall execute a |
124 | form prescribed by the Chief Financial Officer for such |
125 | guarantee which shall be approved by the board of directors and |
126 | shall become an official record of the institution. |
127 | Section 6. Subsection (1) of section 280.10, Florida |
128 | Statutes, is amended to read: |
129 | 280.10 Effect of merger, acquisition, or consolidation; |
130 | change of name or address.- |
131 | (1) When a qualified public depository is merged into, |
132 | acquired by, or consolidated with a financial institution bank, |
133 | savings bank, or savings association that is not a qualified |
134 | public depository: |
135 | (a) The resulting institution shall automatically become a |
136 | qualified public depository subject to the requirements of the |
137 | public deposits program. |
138 | (b) The contingent liability of the former institution |
139 | shall be a liability of the resulting institution. |
140 | (c) The public deposits and associated collateral of the |
141 | former institution shall be public deposits and collateral of |
142 | the resulting institution. |
143 | (d) The resulting institution shall, within 90 calendar |
144 | days after the effective date of the merger, acquisition, or |
145 | consolidation, deliver to the Chief Financial Officer: |
146 | 1. Documentation in its name as required for participation |
147 | in the public deposits program; or |
148 | 2. Written notice of intent to withdraw from the program |
149 | as provided in s. 280.11 and a proposed effective date of |
150 | withdrawal which shall be within 180 days after the effective |
151 | date of the acquisition, merger, or consolidation of the former |
152 | institution. |
153 | (e) If the resulting institution does not meet |
154 | qualifications to become a qualified public depository or does |
155 | not submit required documentation within 90 calendar days after |
156 | the effective date of the merger, acquisition, or consolidation, |
157 | the Chief Financial Officer shall initiate mandatory withdrawal |
158 | actions as provided in s. 280.11 and shall set an effective date |
159 | of withdrawal that is within 180 days after the effective date |
160 | of the acquisition, merger, or consolidation of the former |
161 | institution. |
162 | Section 7. Subsection (1) of section 280.13, Florida |
163 | Statutes, is amended to read: |
164 | 280.13 Eligible collateral.- |
165 | (1) Securities eligible to be pledged as collateral by |
166 | qualified public depositories banks and savings associations |
167 | shall be limited to: |
168 | (a) Direct obligations of the United States Government. |
169 | (b) Obligations of any federal agency that are fully |
170 | guaranteed as to payment of principal and interest by the United |
171 | States Government. |
172 | (c) Obligations of the following federal agencies: |
173 | 1. Farm credit banks. |
174 | 2. Federal land banks. |
175 | 3. The Federal Home Loan Bank and its district banks. |
176 | 4. Federal intermediate credit banks. |
177 | 5. The Federal Home Loan Mortgage Corporation. |
178 | 6. The Federal National Mortgage Association. |
179 | 7. Obligations guaranteed by the Government National |
180 | Mortgage Association. |
181 | (d) General obligations of a state of the United States, |
182 | or of Puerto Rico, or of a political subdivision or municipality |
183 | thereof. |
184 | (e) Obligations issued by the Florida State Board of |
185 | Education under authority of the State Constitution or |
186 | applicable statutes. |
187 | (f) Tax anticipation certificates or warrants of counties |
188 | or municipalities having maturities not exceeding 1 year. |
189 | (g) Public housing authority obligations. |
190 | (h) Revenue bonds or certificates of a state of the United |
191 | States or of a political subdivision or municipality thereof. |
192 | (i) Corporate bonds of any corporation that is not an |
193 | affiliate or subsidiary of the qualified public depository. |
194 | Section 8. Paragraph (e) of subsection (1) of section |
195 | 280.16, Florida Statutes, is amended to read: |
196 | 280.16 Requirements of qualified public depositories; |
197 | confidentiality.- |
198 | (1) In addition to any other requirements specified in |
199 | this chapter, qualified public depositories shall: |
200 | (e) Submit to the Chief Financial Officer not later than |
201 | the date required to be filed with the federal agency: |
202 | 1. A copy of the quarterly Consolidated Reports of |
203 | Condition and Income, and any amended reports, required by the |
204 | Federal Deposit Insurance Act, 12 U.S.C. ss. 1811 et seq., if |
205 | such depository is a bank; or |
206 | 2. A copy of the Thrift Financial Report, and any amended |
207 | reports, required to be filed with the Office of Thrift |
208 | Supervision if such depository is a savings and loan |
209 | association; or |
210 | 3. A copy of the National Credit Union Administration 5300 |
211 | Call Report, and any amended reports, required to be filed with |
212 | the National Credit Union Association if such depository is a |
213 | credit union. |
214 | Section 9. Paragraph (b) of subsection (4) of section |
215 | 280.17, Florida Statutes, is amended to read: |
216 | 280.17 Requirements for public depositors; notice to |
217 | public depositors and governmental units; loss of protection.-In |
218 | addition to any other requirement specified in this chapter, |
219 | public depositors shall comply with the following: |
220 | (4) Whenever public deposits are in a qualified public |
221 | depository that has been declared to be in default or insolvent, |
222 | each public depositor shall: |
223 | (b) Submit to the Chief Financial Officer for each public |
224 | deposit, within 30 days after the date of official notification |
225 | from the Chief Financial Officer, the following: |
226 | 1. A claim form and agreement, as prescribed by the Chief |
227 | Financial Officer, executed under oath, accompanied by proof of |
228 | authority to execute the form on behalf of the public depositor. |
229 | 2. A completed public deposit identification and |
230 | acknowledgment form, as described in subsection (2). |
231 | 3. Evidence of the insurance afforded the deposit pursuant |
232 | to the Federal Deposit Insurance Act or the Federal Credit Union |
233 | Act, as appropriate. |
234 | Section 10. This act shall take effect July 1, 2012. |