<html> <head> <title>Rule 06:02:02:05 Withdrawal of public funds in case of insufficient collateral.</title> <META NAME="Keywords" Content="Administrative Rules 06:02:02:05"> <META NAME="Description" Content="Administrative Rules 06:02:02:05 Withdrawal of public funds in case of insufficient collateral."> <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>6:02:02:05.&nbsp;&nbsp;Withdrawal of public funds in case of insufficient collateral.</b> If the commission determines that a public depository has insufficient collateral pledged, issued, or guaranteed in support of its public deposits, the commission must notify the public depository of the insufficiency. The public depository has 10 days to pledge additional eligible collateral to meet the requirement. If after this time the public depository has not complied with its pledging requirements, the commission shall withdraw sufficient public funds from the public depository to assure compliance with the public depository's pledging requirements in the segregation and issuance of collateral for those public deposits which exceed deposit insurance.</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-4">4-6A-4</A>, <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;</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>Cross-References:</b></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; Bank investments -- Restrictions set by rule -- Limitations, SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-4-25">51A-4-25.</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; Exceptions to investment limitation, SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-4-26">51A-4-26.</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; Preferential deposits, SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=51A-10-9">51A-10-9.</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>