| (a) If the balance of deposits of public funds in a participating depository institution is increased, the participating depository institution will increase the collateral for the deposits to the required amount. (b) The comptroller shall determine the market value of acceptable collateral pledged by participating depository institutions to determine if the collateral amount is adequate. The comptroller's valuation of acceptable collateral is final and not subject to review. (c) If the market value of the collateral pledged by a participating depository institution becomes less than the required amount, the comptroller shall require that additional collateral be pledged immediately, but not later than the close of business on the same day the comptroller notifies the depository institution that it does not meet collateral requirements. (d) Except as provided in subsection (e) of this section, each participating depository institution shall pledge acceptable collateral with a total value of at least 105% of the amount of deposits of public funds in its pool, reduced to the extent deposits are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund. (e) If pledged collateral consists of securities with a declining principal balance, the market value of the collateral pledged may not be less than 125% of the amount of the deposits of public funds to be secured, reduced to the extent deposits are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund. (f) The collateralization requirements of Government Code, §2257.022(b) do not apply to a deposit of public funds held by a participating depository institution and collateralized in the pooled collateral program. |
