Information for Certificates of Deposit

If certificates of deposit are an eligible type of collateral pursuant to the statute, contract, or other document defining the requirements of a deposit and are selected for deposit with Collateral Administration, the certificate must:
1. Be issued for a period of not less than one (1) year. 

2. Be issued by a bank, savings bank, or savings association that has executed a certificate(s) of deposit agreement with the Chief Financial Officer and be issued by/assigned to a Florida branch of the institution. 

3. Be interest-bearing and may not be issued in discounted form.

4. Be issued in physical certificate form and delivered to Collateral Administration.

Mailing address:

Division of Treasury
Bureau of Collateral Management
Collateral Administration Section
200 E. Gaines Street
Tallahassee, FL 32399-0345
 

5. Be registered "Chief Financial Officer, State of Florida in Trust for (name of entity)". 

Certificates with endorsement or assignment are not acceptable. The Chief Financial Officer of Florida is the only authorized signature on the principal amount of the certificate. Any withdrawal, conversion, redemption, or other action taken on the principal amount of the certificate requires the Chief Financial Officer's prior written authorization from Collateral Administration. If signature cards are utilized by the issuing institution, an authorized signature card for the Chief Financial Officer will be sent to the issuing institution upon request for certificates in the possession of Collateral Administration.

Investment decisions are made by the entity for which the certificates are held in trust. Any alteration or withdrawal requires the Chief Financial Officer's authorization, but would be the portfolio decision of the depositing entity involved. As the choice for early withdrawal would initially be the depositing entity's and it would bear the financial consequences, early withdrawal acknowledgments should be signed by an officer of the depositing entity.

Interest on certificates of deposit should be paid directly to the depositing entity by the issuing bank or savings institution. The depositing entity should make arrangements with the institution for the payment of interest at the issuing time of purchase. In case of the depositing entity's insolvency or non-compliance with legal requirements, Collateral Administration will provide revised written interest instructions to the institution.

Interest should not be added to the principal of the certificate at renewal unless the depositing entity has intent to increase the deposit. When interest has been added to the principal balance stated on the certificate, release of this interest will require authorization from the regulating governmental entity. 

No judgment, creditor or other claimant has the right to levy upon the certificate. No indebtedness or obligation may be set off against the certificate. 

Survivorship is limited to successors in office for the Chief Financial Officer, State of Florida. 

Links

 

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