| (a) The comptroller will post on its website the depository institution application, collateral security agreement, related documents, and guidance for application and participation in the pooled collateral program. (b) The comptroller's approval of a depository institution's participation in the pooled collateral program is effective for two years from September 1 of each odd-numbered year until August 31st of the next odd-numbered year. A depository institution may apply for approval every two years in the pooled collateral program, according to the instructions posted on the comptroller's website, but may also apply at any time during the two-year period. (c) The comptroller will notify a participating depository institution of the deadline for application by June 1st of each odd-numbered year. A depository institution must apply by August 1st of each odd-numbered year for the comptroller's approval to be effective for September 1 of each odd-numbered year for the next two-year term. (d) The parent institution of a depository institution must apply to be a participating depository institution and be approved if deposits are to be held in any of its Texas branch locations. Branch institutions may not apply. The parent institution may apply for approval by submitting a completed application and executed collateral security agreement to the comptroller at any time. (e) Once a depository has been approved for participation in the pooled collateral program, it will submit each new collateral security agreement with a public entity to the comptroller for approval before accepting its deposits as part of the pooled collateral program and in accordance with the comptroller's instructions on its website. (f) A successor institution to a participating depository institution must apply for approval to act as a depository institution and comply with pooled collateral program law, rules and requirements as soon after the change in ownership as is practicable. (g) The comptroller at its discretion may require the participating depository institution to update the application form and collateral security agreement. (h) If the depository institution has been approved for participation, the comptroller will notify the depository institution and the public entity. The comptroller will provide them both with instructions and requirements for participation in the pooled collateral program, including access to the pooled collateral program website. (i) If the depository institution has not been approved for participation, the comptroller will notify it in writing of the reason for disapproval. If the applicant that was not approved was a participating depository institution, it will comply with the requirements of §4.106(b) of this title (relating to Voluntary Withdrawal from the Pooled Collateral Program) for the orderly withdrawal from the pooled collateral program within ninety days of the comptroller's written disapproval. (j) Within thirty days after the written disapproval of its application an applicant may request an informal review in writing. The applicant must include the basis for its request and submit evidence that it cured any deficiency in its application. The comptroller will conduct an informal review based on the applicant's written submission. Except as provided in subsection (i) of this section for a participating depository institution, an applicant may not act as a depository institution in the program during the informal review process. (k) The agency's decision in the informal review is a final decision. (l) After the informal review process is complete, an applicant that has been disapproved for a deficiency may reapply to act as a depository institution once the deficiency in its application has been cured; however an applicant that has been disapproved for violation of §4.118 of this title (relating to Administrative Penalties for Noncompliance by Participating Depository Institution) would not be considered eligible to apply to act as a depository institution until the next odd-numbered year. |
