services and will be required for all public deposits over the FDIC, IntraFi/CDARS/ICS coverage amounts. Bank Rating Collateral Pledging Level 1-2 50% 3 75% 4-5 100% • A weekly reporting of public deposits through the State Treasurer’s Office Online Collateral System • Liability for proportionate share of losses of uninsured and uncollateralized public deposits held by a designated state depository in default. Requirements and Responsibilities Once designated state depositories select one of the two aforementioned collateralization methods, the designated state depository will be responsible for pledging collateral at the required amount with a designated Qualified Escrow Agent for holding and safekeeping in benefit to the State Treasurer’s Office. Both designated state depositories and qualified escrow agents must report weekly to the State Treasurer’s Office via the State Treasurer’s Office Online Collateral System. If desired, designated state depositories may change from one collateralization method to another each quarter. There are no exemptions or exceptions to the Act, and all public funds must be collateralized through the State Treasurer’s Office. Additionally, all parties must sign appropriate forms provided by the State Treasurer’s Office. Compliance with the Act is required while a designated state depository holds any public funds. Failure to comply with the Act may result in penalties or the rescission of authority to receive public funds. State Treasurer’s Office Online Collateral System The online collateral system will allow designated state depositories to have access to and see their public depositor’s accounts, will let qualified escrow agents see securities held by their depositories, will enable depositors to have access to see their account balances and will allow for balances to be uploaded weekly. The Public Deposits Program is expected to be operable on or before March 1, 2024, and will be administered by the State Treasurer’s Office. Suttle & Stalnaker is ready to help you. If you would like more information on how this applies to you, contact Kelly Shafer, CPA, at kshafer@suttlecpas.com or (304) 343-4126. You may also contact Josh Sharp, CPA, at jsharp@suttlecpas.com or (304) 343-4126. The purpose of the Act is to allow designated state depositories to pledge collateral for all public deposits through a pooled method and Public Deposits Program. 13 West Virginia Banker
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