(1) When a non-qualified depository acquires, merges, or consolidates with a Qualified Public Depository, the resulting institution automatically becomes a Qualified Public Depository for thirty (30) days, and assumes the contingent liability, required collateral, and reporting requirements of the former Qualified Public Depository relative to the Public Depository Program.
    (2) Banks and savings associations that desire to become a Qualified Public Depository shall make application to the Chief Financial Officer within thirty (30) days of the acquisition, merger, or consolidation.
    (3) Banks, savings associations, or other types of institutions which do not meet the requirements to become a Qualified Public Depository must relinquish all public deposits held by the former Qualified Public Depository.
    (4) If the resulting bank or savings association chooses not to become a Qualified Public Depository, the contingent liability, required collateral and reporting requirements of the former Qualified Public Depository shall continue for a period of twelve (12) months after the effective date of withdrawal and the resulting institution shall:
    (a) Provide to the Chief Financial Officer within the 30 day grace period official written notice of its decision not to become a Qualified Public Depository, stating an effective date of withdrawal, which shall not be more than six months from the date of the acquisition, merger, or consolidation. The institution shall not open any new public deposit accounts after the date of official notice of withdrawal to the Chief Financial Officer, and it shall not accept or retain any public deposits after that effective date.
    (b) Submit with the written notice of withdrawal to the Chief Financial Officer, a list of all public deposit accounts, including those with balances of less than $100,000. This list must be signed by the Chief Executive Officer and include all account names, account numbers, balances, and maturity dates if applicable. The list shall include a schedule specifying when each account is to be closed.
    (c) File all monthly, quarterly, and annual reports required by chapter 280, F.S., and submit with each monthly report an updated list of public deposit accounts as of the last day of the month reported. When all accounts are closed, it shall continue to file monthly reports for twelve (12) months, at which time the contingent liability of the former Qualified Public Depository shall cease to exist, and all collateral pledged will be released upon request.
    (d) Provide to the Chief Financial Officer, when all public deposit accounts have been closed, a written certified notice that the institution no longer holds any public deposits, signed by an authorized third party qualified to conduct audits.
    (e) Notify all public depositors, as shown on the list of public deposit accounts described in paragraph (4)(b), above, that the resulting institution is not a Qualified Public Depository, and the funds it holds for those depositors shall cease to be protected by chapter 280, F.S., after the effective date of withdrawal. Penalties incurred because of early withdrawal shall be the responsibility of the withdrawing depository pursuant to Florida Statutes § 280.11(3)
Rulemaking Authority 280.10(7), 280.19 FS. Law Implemented 280.09(2), 280.10, 280.11 FS. History-New 7-12-92, Formerly 4C-2.027.