PDPC FAQs

Governor, Lieutenant Governor, and the State Treasurer as Chair

• Chapter 39.58 RCW
• Chapter 389-12 WAC
• PDPC resolutions

“Public depositary” means a financial institution that has been approved by the commission to hold public deposits, and has segregated, for the benefit of the commission, eligible collateral having a value of not less than its maximum liability RCW 39.58.010(15). 

“Public deposit” means public funds on deposit with a public depositary (RCW 39.58.010).

“Public funds” means moneys under the control of a treasurer, the state treasurer, or custodian belonging to, or held for the benefit of, the state or any of its political subdivisions, public corporations, municipal corporations, agencies, courts, boards, commissions, or committees, including moneys held as trustee, agent, or bailee belonging to, or held for the benefit of, the state or any of its political subdivisions, public corporations, municipal corporations, agencies, courts, boards, commissions, or committees (RCW 39.58.010).

Click for a listing of all approved public depositaries and links to their web pages

“Eligible collateral” means the securities or letters of credit enumerated in RCW 39.58.050 (5), (6) and (7). Additional types of collateral determined to be eligible by rule or resolutions can be located under Laws, Rules, and PDPC Resolutions.

• 100% of the greater of your Maximum Liability or WA Public Deposits Uninsured balance.
• Well Capitalized–greater of either maximum liability or 50% of WA Public Deposits Uninsured [this option increases your maximum liability from 10% to 25%].
• 100% on excess deposits above deposit limitations.

PDPC provides a report online listing public deposit balances and WA proportional net worth balances.

• 100% of WA Proportional Net Worth limit if single Public Depositor.
• 150% of WA Proportional Net Worth limit if multiple Public Depositors, and not to exceed 30% of Total Public Deposits unless 100% collateralized on excess.

Any financial institution may become, and thereafter operate as, a public depositary upon approval by the commission and segregation of collateral in the manner as set forth in this chapter, and subject to compliance with all rules and policies adopted by the commission. A public depositary shall at all times pledge and segregate eligible collateral in an amount established by the commission by rule or noticed resolution. “Financial institution” means any national or state chartered commercial bank or trust company, savings bank, savings association, or federal or state chartered credit union, or branch or branches thereof, located in this state and lawfully engaged in business. See chapter 39.58 RCW, chapter 389-12 WAC, and PDPC resolutions for requirements.

• Submit an application letter with certificates of authority.
• Provide proof of meeting meetings of the directors or loan committees approval to enter into a depositary pledge agreement if your financial institution is planning on pledging securities as collateral.
• Review of your application and financial information.
• Approval status is authorized by the Chair under delegation of authority granted by resolution.

Monthly and quarterly reporting requirements as defined in chapter 39.58 RCW and chapter 389-12 WAC

The commission, or the chair upon delegation by the commission, upon good cause shown, may authorize, for such time and upon such terms and conditions as the commission or chair deem appropriate, a treasurer to maintain a demand deposit account with a banking institution located outside the state of Washington learn more:

• RCW 39.58.080
• RCW 39.58.085
• WAC 389-12-140

Collateral is valued at market value and the market value of pledged collateral shall not be reduced by withdrawal or substitution except by prior authorization, in writing, by the commission as per Chapter 39.58 RCW and chapter 389-12 WAC.

Yes, the commission may accept as collateral a letter of credit from a federal home loan bank or a federal reserve bank on behalf of a public depositary, naming the commission as beneficiary. Such letters are not subject to a completed depositary pledge agreement. As such, the commission must act as the safekeeping agent for letters of credit. All securities pledged as collateral required a fully executed tri-party DPA.

“Trustee” means a third‐party safekeeping agent which has completed a depositary pledge agreement with a public depositary and the commission. Such third‐party safekeeping agent may be a federal home loan bank, or such other third‐party safekeeping agent approved by the commission. Contact PDPC administrator for more details.