(a) Upon being designated as a qualified public depository, the qualified public depository shall select one (1) or more trustee custodians for the deposit of eligible collateral by the qualified public depository.

Terms Used In Tennessee Code 9-4-505

  • Collateral pool: means an arrangement whereby the repayment of public deposits deposited with any qualified public depository is secured through the sum total of eligible collateral pledged by all qualified public depositories, and contingent liability agreements as provided by the collateral pool board. See Tennessee Code 9-4-502
  • Eligible collateral: has the meaning set forth in §. See Tennessee Code 9-4-502
  • Loss: includes , but is not limited to:
    (A) The principal amount of the public deposit. See Tennessee Code 9-4-502
  • Public depository: means :
    (i) Any savings and loan association, or savings bank (collectively referred to as savings institutions), or any bank chartered by the state of Tennessee. See Tennessee Code 9-4-502
  • Qualified public depository: means any public depository that meets all of the requirements of this part and that has been authorized by the board to secure public deposits through the collateral pool. See Tennessee Code 9-4-502
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Trustee: A person or institution holding and administering property in trust.
  • Trustee custodian: means a financial institution designated to hold eligible collateral on behalf of the state treasurer and a qualified public depository pursuant to §. See Tennessee Code 9-4-502
(b) Designation of trustee custodians shall be made in accordance with § 9-4-108.
(c) Sections 9-4-408 and 9-4-409 shall apply to trustee custodians designated under this part.
(d) Trustee custodians shall submit a report quarterly to the state treasurer providing a description of eligible collateral deposited by the qualified public depository and the current par value of eligible collateral, as well as other reasonable reports requested by the state treasurer.
(e) Neither the state, the state treasurer, nor the collateral pool shall be liable to either the qualified public depository or the public depositors for eligible collateral deposited with or held by any trustee custodian for any loss arising from any breach of the trust or from any other cause whatsoever.
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