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Utah Administrative Code (Current through November 1, 2019) |
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R628. Money, Management Council |
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R628-10. Rating Requirements to Be a Permitted Depository |
| R628-10-1. Purpose |
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This rule establishes a uniform standard for public treasurers to evaluate the financial condition of a Permitted depository institutions to determine if acceptance of Utah public funds by those institutions would expose public treasurers to undo risk. The criteria is applicable to all Permitted depository institutions to determine if they are eligible to accept deposits of Utah public funds. The criteria established by this rule is designed to be flexible enough to ensure that public treasurers will be able to receive competitive market rates on deposits placed outside this state while maintaining sufficient protection from loss. |
| R628-10-2. Authority |
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This rule is issued pursuant to Sections 51-7-17(4) and 51-7-18(2)(b)(iv). |
| R628-10-3. Definitions |
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The terms used in this rule are defined in Section 51-7-3. |
| R628-10-4. Rating Requirements for Permitted Depositories |
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(1) The Permitted depository must meet the following criteria to accept deposits from Utah public entities: (a) The deposits must be federally insured; (b) the total assets of the Permitted depository must equal $5 billion or more as of December 31 of the preceding year, and; (c) fixed rate negotiable deposits which meet the criteria of Section 51-7-11(3)(f) must, at the time of investment, have the equivalent of an "A" or better short term rating by at least two NRSRO's, or: (d) variable rate negotiable deposits which meet the criteria of Section 51-7-11(3)(m) must, at the time of investment, have the equivalent of an "A" or better, long term rating, by at least two NRSRO's. (2) Permitted depository institutions whose ratings drop below the minimum ratings established in R628-10-4(1). above, are no longer eligible to accept new deposits of Utah public funds. Outstanding deposits may be held to maturity, but may not be renewed and no additional deposits may be made by any public treasurer. |
| R628-10-5. Restrictions on Concentration of Deposits in Any One Permitted Depository Institution |
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The maximum amount of any public treasurers portfolio which can be invested in any one Permitted depository institution shall be as follows: (1) Portfolios of $10,000,000 or less may not invest more than 10% of the total portfolio with a single issuer. (2) Portfolios greater than $10,000,000 but less than $20,000,000 may not invest more than $1,000,000 in a single issuer. (3) Portfolios of $20,000,000 or more may not invest more than 5% of the total portfolio with a single issuer. The amount or percentages used in determining the amount of Permitted deposits a treasurer may purchase, shall be determined by the book value of the portfolio at the time of purchase. |