W. Va. Code R. § 60-11-14

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 60-11-14 - Certificates of Deposit

14.1. An owner may satisfy the bonding requirements of these rules by submitting a certificate of deposit that:

14.1.a. Is issued by a single institution in a denomination not in excess of $250,000.00, or the maximum insurance amount as determined by the Federal Deposit Insurance Corporation, whichever is less. The department may not accept a combination of certificates of deposit from an owner in excess of that limit from a single institution. If the issuing institution uses a system in which the issuing institution serves as custodian for the payees of multiple certificates of deposit and arranges for one or more additional institutions to issue certificates of deposit not in excess of each institution's Federal Deposit Insurance Corporation limit, and submits those certificates of deposit to the department with proof determined to be acceptable to the department that the issued certificates of deposit are insured by the Federal Deposit Insurance Corporation, the, the department may accept those certificates of deposit;

14.1.b. Is automatically renewable annually on the certificate of deposit's anniversary date;

14.1.c. In combination with all certificates of deposit, is in an amount sufficient to ensure that funds in the amount of the bond required by these rules will be paid to the department by the issuing bank if the department forfeits the bond and liquidates the certificates of deposit before maturity;

14.1.d. Is payable to the owner and the department, and the owner has assigned its interest in the certificate of deposit, both in writing and in the records of the bank issuing the certificate of deposit;

14.1.e. Expressly prohibits the owner from withdrawing funds until the department has released the certificate of deposit assignment; and

14.1.f. Waives all rights of the issuer to a setoff or lien against the certificate of deposit.

W. Va. Code R. § 60-11-14