Rule 113-40-05 | Collateral sufficiency.
(A) In calculating the collateral percentage required at a bank account level, OPCS will require the greater of the following two calculations:
(1) The public unit (PU) negotiated collateral requirement plus the cushion collateral requirement; or
(2) The reduced collateral floor requirement plus any bank monitoring collateral requirement, any economic monitoring requirement, and any cushion collateral requirement.
(B) In calculating collateral sufficiency, the treasurer of state will:
(1) Use existing market pricing available through a reputable source to determine the collateral valuation to calculate the collateral sufficiency.
(a) The treasurer will share the source of market pricing upon request.
(b) A financial institution (FI) may challenge this collateral valuation, but the treasurer shall make the final determination.
(2) Conduct a daily review of collateral sufficiency based upon the collateral requirement calculation and the collateral valuation.
(a) A FI may challenge this collateral sufficiency, but the treasurer shall make the final determination.
(b) A FI will be notified by the treasurer of any collateral deficiencies, and will be responsible to address the deficiencies in accordance with the operating policies.
Last updated August 11, 2023 at 8:30 AM
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