In fulfilling the requirements of this part, the state treasurer has the power to:

(1) Require such collateral, or increase the collateral-pledging level, of any qualified public depository as may be necessary to administer this part and to protect the integrity of the collateral pool as directed by the board;

Terms Used In Tennessee Code 9-4-511

  • Board: means the collateral pool board created pursuant to §. See Tennessee Code 9-4-502
  • 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
  • Deposit insurance: means the insurance provided by the federal deposit insurance corporation. 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.
(2) Decline to accept, or reduce the reported value of, collateral as circumstances may require in order to ensure the pledging of sufficient marketable collateral to meet the purposes of this part;
(3) Verify the reports of any qualified public depository relating to public deposits it holds when necessary to protect the integrity of the collateral pool;
(4) Sell pledged securities, or move pledged securities to an account established in the state treasurer’s name, for the purpose of paying losses to public depositors not covered by deposit insurance or to perfect the state treasurer’s interest in the pledged securities;
(5) Transfer funds directly from the trustee custodian to public depositors or the receiver in order to facilitate prompt payment of claims;
(6) Provide data as may be necessary to assist the board in developing standards and criteria for the program;
(7) Review, implement, monitor, evaluate and modify, as needed, all or any part of the standards and policies recommended by the board;
(8) Confirm public deposits, to the extent possible under current law, when needed;
(9) Monitor and confirm, as often as deemed necessary by the state treasurer, the pledged collateral held by trustee custodians;
(10) Audit or verify the reports required under this part or under rules adopted under this part;
(11) Maintain perpetual inventory of pledged collateral and perform monthly market valuations and quality ratings;
(12) Perform financial analysis of all qualified public depositories; and
(13) Perfect interest in pledged collateral by having pledged securities moved into an account established in the state treasurer’s name. This action shall be taken at the discretion of the state treasurer.
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