Major Characteristics of Florida's Public Deposits Program

1. Protection of principal and accrued interest as of the date a QPD is declared in default or insolvent on all public funds deposited in compliance with the program.

2. Depositories collateralize public funds after the fact. Each QPD computes monthly the amount of its public deposits and required collateral based on its average balance of public accounts. This information is reported to the Chief Financial Officer by the 15th of the following month on the Chief Financial Officer's monthly report form. The amount of collateral pledged to the Chief Financial Officer is normally based on the total amount of public deposits held multiplied by the institution's pledging level, unless other special conditions apply. 

3. Public depositors have a number of institutions from which to choose to deposit their funds.

4. Public depositors have minimal responsibilities and reporting requirements. Public depositors' primary responsibilities are limited to: 

(1) depositing funds with QPDs and identifying accounts as public depositsAcrobat Reader required to view this file. to QPDs ;
(2) filing a Public Depositor Annual ReportAcrobat Reader required to view this file. with the Chief Financial Officer advising name, address, tax identification number, account balances, etc.; and
(3) reporting to the Chief Financial Officer any notices received from a regulator regarding a QPD's default or insolvency. 
5. Low collateral requirements. QPDs can qualify to pledge collateral at a 25% or 50% level.

6. Administration of the Public Deposits Program is vested in the State Chief Financial Officer. Chapter 280, Florida Statutes, outlines a broad range of powers to be used in managing the program.

7. Industry advisory committees are available to the Program. The Chief Financial Officer is authorized to appoint industry representatives to committees to review and recommend criteria to be used in managing the Program.

8. Entrance into, participation in, and exit from the Program are based on the overall financial condition of each depository. The following criteria were developed and recommended by the industry advisory committees and adopted by the Chief Financial Officer:

A. Two nationally recognized financial institution rating services are used to rank the financial condition of each participant and applicant. This ranking is based on a scale of 0 to 100. Currently,  FIS and IDC rating services are used.
B. Institutions with a ranking of:
1. 20 or more may join the Public Deposits program. 
2. 0 - 15 must withdraw from the Program. However, an institution may choose to meet the following conditions as an alternative to withdrawing:
a. Establish a maximum amount of public deposits the institution may hold, which is mutually agreed upon by and between the Chief Financial Officer and the institution.
b. Deposit into an account in the Chief Financial Officer's name eligible collateral equal to 200% of the amount of public deposits agreed to in (a) above.
c. Submit each month, or whenever requested by the Chief Financial Officer, a certified report listing all public deposits held for the credit of all public depositors.
3. 0 - 20 must deposit collateral into a custodial account established in the Chief Financial Officer's name.
4. 0 - 29 must pledge collateral at a 125% level, unless paragraph 2 applies.
5. 30 - 69 may pledge collateral at a 50% level.
6. 70 and above (four-quarter average) may pledge collateral at a 25% level.
7. Institutions less than three years old must pledge collateral at a 125% level unless paragraph 2 applies. 

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