No. 28332: R628-13. Collateralization of Public Funds

DAR File No.: 28332
Filed: 11/07/2005, 09:21
Received by: NL

 

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 51-7-18 says that the Council may only make a rule requiring collateral in the event that a qualified depository goes over its maximum allotment of public funds they can hold over the federally-insured amount. This rule delineates what conditions must occur for collateral to be taken in and for how long where the collateral is to be delivered and when it will be returned.

 

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No written comments have been received since the last five-year review.

 

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

In the event that a qualified depository goes over its maximum allotment, the Council has to have procedures in place to take in collateral to cover the overage. This rule provides those procedures. If it were not in place and an institution went over its allotment then public funds would not be covered. Therefore, this rule should be continued.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Money Management Council
Administration
Room E315 EAST OFFICE BLDG
STATE CAPITOL COMPLEX
PO BOX 142315
SALT LAKE CITY UT 84114-2315

 

Direct questions regarding this rule to:

Ann Pedroza at the above address, by phone at 801-538-1883, by FAX at 801-538-1465, or by Internet E-mail at [e-mail]

 

Authorized by:

Bruce B. Cohne, Chair