Public Depositaries Resources

Public Deposits and Washington Proportional Net Worth Report

Application Process to Become a Public Depositary

  • 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.

Approved: summary of what to expect next as a new WA public depositary

  • Approval Letter will be provided to the financial institution
  • Designate Reporting/Collateral Contacts
  • Added to online list of P.D.
  • Accept Public Deposit at WA branch
  • Pledge required Collateral
  • Monthly & Quarterly Reporting starts end of the month first approved
  • Monitor Public Deposits

Call with any questions, all information can be found in chapter 39.58, chapter 389-12, and PDPC resolutions on webpage. Summary of rules to monitor while holding public deposits

  • Credit Unions have additional deposit limitations based on the location of a public depositor (information attached on the monthly and quarterly report)
  • Net Worth PDPC deposit limitations (information attached on the monthly and quarterly report) net worth information will be posted on PDPC Reports and Forms page.
  • Monitor daily if any uninsured public deposits and ensure adequate collateralization – work with your collateral contacts
  • Collateralization

Collateralization

  • 100% of the greater of your Maximum Liability or WA Public Deposits Uninsured balance, but if
  • Well Capitalized have option of the 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

Collateralization Requirements

WA PDPC collateralization requirements can be found on Washington State Treasurers website’s laws, rules, and resolutions page.

Collateralization requirements are defined in these three areas:

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

Deposit Limitations Summary

  • 58.130 —- Deposit Limitations of a single public depositor at any one public depositary can not exceed financial institutions WA Proportional Net Worth
  • 58.135 —- Deposit Limitations of multiple public depositors can not exceed 150% of financial institutions WA Proportional Net Worth, AND nor Public Deposits in any one public depositary can not exceed 30% of total WA public deposits unless 100% Collateralized on excess
  • Complete PDPC deposit limitations are outlined in Chapter 39.58 RCW and Chapter 389-12 WAC

PDPC SAW/TM$ Online Reporting Contact

  • Treasury Management System (TM$) – Online Reporting Web Client Logon Authorization Form
    1. Complete form, scan and email the form back to PDPC when completed. You only need to include the changes on the form.
    2. I will process and provide the form to the Office of the State Treasurer (OST) IT department.
    3. You will receive an email from the OST IT department with instructions on setting up your SAW account and how to add Tm$ as a service and then once that is complete.
    4. The OST IT department will get an automatic notification that step was completed.
    5. You should get a second email from the OST IT department within their normal working hours of Monday-Friday 8 a.m. – 5 p.m.
    6. You can finish the final step and should be able to access the SAW/TM$ online reporting.
  • Form: SAW/TM$ Online Reporting Contact

SAW/TM$ System Requirements

SAW/Treasury Management System (TM$) Link

Click here to access SAW/TM$ or copy and past the following into your browser: https://secureaccess.wa.gov/myAccess/saw/select.do

Collateral/Securities Authorization Contact

Reporting Calendar

Population Restrictions – Only applies to Credit Unions

This applies to credit unions and is based on the location of the public depositor. Note: PDPC requires credit unions to include the county of your public depositors on your monthly reporting. 39.58.240

Credit union as public depositary — Conditions:

A credit union may only accept deposits greater than the maximum insured amount from a public funds depositor that either is a county with a population of three hundred thousand persons or less or is a public funds depositor located within a county with a population of three hundred thousand persons or less.

Population Report (OFM Population Estimates)

Letter of Credit Beneficiary Information

The commission may also 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.

Physical address for Letter of Credit deliveries from FedEx or UPS:

Public Deposit Protection Commission
Office of the State Treasurer
106 11th Ave SW, Suite 1200
Olympia WA 98501

Release or Reduction of Collateral

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

  • Bank Letterhead
  • Addressed to PDPC
  • State if you are wanting a release or partial release of specific cusips
  • List detail about which cusip requesting to be released with original par figure
  • Required – Current (with a few days of request) the WA Uninsured Pubic Deposits & Total WA Public Deposits
  • Request needs to be signed by an Approved Collateral Contact with authority to release
  • Scan and email back to me perry@tre.wa.gov
  • PDPC reviews request and collateral levels and issued an approval or denial within 24 hours (usually same day)
  • PDPC will send Release Authorization Letter to your trustee and cc the bank
  • PDPC will receive the release confirmation receipt the following day from your trustee and I will update my system

Collateral Substitutions

Substitutions resulting in an equal or greater aggregate value do not need PDPC authorization.  These substitutions are covered under our Public Deposit Protection Act chapter 39.58 RCW, Washington Administrative Code (WAC) chapter 389-12 and our triparty Depositary Pledge Agreement.