Current through Register Vol. XLI, No. 50, December 13, 2024
Section 112-7-5 - Collaterally Secured Bonds5.1. The Treasurer may deposit money with a depository in excess of the amount insured by an agency of the federal government or through a deposit guaranty bond issued by a valid banker's surety company, if the depository provides a collaterally secured bond in the amount of not less than Ten Thousand Dollars ($10,000).5.2. A depository shall provide collateral of at least one hundred two percent (102%) of the amount of state funds on deposit with that financial institution in excess of the amount insured by an agency of the federal government or the amount insured by a deposit guaranty bond issued by a valid bankers' surety company.5.3. The value of the collateral used by a depository shall be determined by the Treasurer.5.4. If a state depository insured through a collaterally secured bond or through letters of credit becomes insolvent or in any way breaches its contract with the Treasurer and fails to cure the insolvency or breach within five (5) business days, the holder of the collateral or the obligor for the letters of credit for the depository shall, within three (3) business days, upon written demand, remit to the Treasurer the collateral securing state funds on deposit with the state depository.