Florida's Public Deposits Program is a uniform statewide collateralization
program that requires public entities to utilize, for all bank deposit
accounts, banks and savings associations that have been approved by the Chief
Financial Officer as qualified public depositories (QPDs).
Public funds on deposit in QPDs are protected against loss due to insolvency by:
(1) federal deposit insurance; (2) the pledge of securities as collateral; and
(3) a contingent liability
agreement that allows the Chief Financial Officer to assess
QPDs if the securities pledged by an insolvent QPD are insufficient.
The Program has been beneficial to public treasurers and fund custodians by
relieving them of the need to maintain individual collateralization programs.
Banks and savings associations have benefited through centralization and
standardization of reporting and collateral pledging requirements. In addition,
QPDs may be eligible to pledge collateral at a reduced level.