<html> <head> <title>Rule 06:02:02:03 Adequacy of eligible collateral for securing public deposits.</title> <META NAME="Keywords" Content="Administrative Rules 06:02:02:03"> <META NAME="Description" Content="Administrative Rules 06:02:02:03 Adequacy of eligible collateral for securing public deposits."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 14 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4;} @font-face {font-family:Times; panose-1:2 2 6 3 5 4 5 2 3 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; punctuation-wrap:simple; text-autospace:none; font-size:10.0pt; font-family:"Times","serif";} /* Page Definitions */ @page WordSection1 {size:8.5in 11.0in; margin:49.7pt 63.35pt 49.7pt 1.0in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US> <div class=WordSection1> <p class=MsoNormal style='text-align:justify'><a name="_GoBack"></a><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>6:02:02:03.&nbsp;&nbsp;Adequacy of eligible collateral for securing public deposits.</b> The adequacy of present collateral being used to secure uninsured public deposits must be computed and shown by the public depository, with any deficiency being made up by an immediate pledge of additional eligible collateral to the commission, the immediate issuance of an irrevocable standby letter of credit, or the immediate guarantee of a corporate surety bond.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All securities pledged to secure uninsured public deposits are to be listed and described by name, number, rate, maturity or due date, par or original face value, current market value not including accrued interest, and custodian name and location.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All certificates of deposit pledged to secure uninsured public deposits are to be listed and described by the name of the issuing institution, certificate number, dollar value, rate of interest to be paid, maturity date, and name and location of custodian.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A satisfactory irrevocable standby letter of credit issued to secure uninsured public deposits which is accepted by the state treasurer on behalf of the commission must be listed and described by name, number, aggregate amount, status of either &quot;new&quot; or &quot;renewal,&quot; and an acceptable expiration date. An irrevocable standby letter of credit is satisfactory to the commission if it is issued by a federal home loan bank whose credit rating is at least &quot;AA,&quot; and if it meets the requirements of &#167;&nbsp;6:02:02:06. An expiration date is acceptable to the commission if it is a specific date or it is a definite term which is not more than 10 years in the future.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A satisfactory surety bond provided as a guarantee to secure uninsured public deposits which is accepted by the state treasurer on behalf of the commission must be listed and described by name, number, total amount, and date of termination. A surety bond is satisfactory to the commission if it is issued in a maximum guaranteed amount equal to the total limit of liability of the corporation under the bond and if it meets the requirements of &#167;&nbsp;6:02:02:06.01.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 2 SDR 51, effective January 13, 1976; 24 SDR 93, effective January 12, 1998; 42 SDR 51, effective October 13, 2015.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-6A-20">4-6A-20.</A></span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-6A-3">4-6A-3</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-6A-6">4-6A-6</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=4-6A-7">4-6A-7.</A></span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman","serif"'>&nbsp;</span></p> </div> </body> </html>