Ala. Admin. Code r. 892-X-1-.11

Current through Register Vol. 43, No. 1, October 31, 2024

Section 892-X-1-.11 - Public Deposit Changes Greater Than 25%

(1) 25% Increase in Public Deposits. In accordance with State Law, a QPD may not accept any public deposit during the month that would increase its Net Average Daily Balance of public deposits for that month by 25 percent or more over the net average daily balance of public deposits reported for the previous month unless it first deposits or has on deposit additional required collateral to secure such increase. The QPD must notify SAFE of the pledge of additional collateral prior to the acceptance of such deposit.

(2) 25% Decrease in Public Deposits. QPDs that experience a deposit withdrawal during the month that would decrease their Net Average Daily Deposits by 25% or more may be eligible for release of excess collateral if all of the following are met:

(a) The decrease in net public deposits must be 25% or higher;

(b) The 25% decrease occurred in a period of seven (7) consecutive banking days or less;

(c) A fully completed interim monthly report is submitted.

Ala. Admin. Code r. 892-X-1-.11

New Rule: Filed January 19, 2006; effective February 23, 2006. Amended: Filed August 20, 2008; effective September 24, 2008.

Author: Mickey Daughtry, SAFE Division, Office of State Treasurer.

Statutory Authority:Code of Ala. 1975, §§ 41-14A-3, 41-14A-5, 41-14A-6, 41-14A-8, as amended.