20 NCAC 07 .0104. METHODS OF SECURING DEPOSITS

(a)  Deposits of Public Depositors.  Except for public deposits of housing authorities each depository shall have the following options:

(1)           Dedicated Method.  To secure all uninsured public deposits of each public depositor separately.  The depository shall maintain a record of all securities pledged, with such record being an official record of the depository and made available to examiners or representatives of all regulatory agencies.  Each public depositor shall maintain a record of the securities pledged for monitoring purposes.

(2)           Pooling Method.  To secure all uninsured public deposits of every public depositor through a pool of collateral established by the depository with the State Treasurer for the benefit of the State and the participating units.  The depository shall maintain a record of all securities pledged, with such record being an official record of the depository and made available to examiners or representatives of all regulatory agencies.  The State Treasurer shall maintain a record of the securities pledged for monitoring purposes.

(b)  Notwithstanding the definitions in 20 NCAC 7 .0102, housing authorities established pursuant to G.S. 157, Article 1 and operating under the provisions of the United States Housing Act of 1937, as amended, shall not be eligible to be included in the Pooling Method.  The deposits of such housing authorities shall be collateralized under the Dedicated Method, and in accordance with any further restrictions required by regulations of the United States Department of Housing and Urban Development.

(c)  The State Treasurer shall maintain a listing of depositories which have selected the Pooling Method, and shall periodically make such listing available to all participating units.

 

History Note:        Authority G.S. 115C‑444(b); 147‑79; 159‑31(b);

Eff. August 1, 1980;

Readopted with Change Eff. February 1, 1982;

Amended Eff. April 1, 1994; November 1, 1983.