R628.  Money Management Council, Administration.
R628-12.  Certification of Qualified Depositories for Public Funds.
R628-12-1.  Authority.
	This rule is issued pursuant to Sections 51-7-3(21) and 51-7-18(2)(b).

R628-12-2.  Scope.
	This rule applies to all federally insured depository institutions with offices and branches in the state of Utah at which deposits are accepted or held.

R628-12-3.  Purpose.
	This rule establishes the requirements which must be met by a federally insured depository institution to become and remain a qualified depository eligible to receive and hold deposits of public funds.  It also establishes the conditions under which eligibility may be terminated and the procedures to be followed in terminating a depository institution's status as a qualified depository.

R628-12-4.  General Rule.
	A Utah depository institution as defined in Subsection 7-1-103(36) or a out-of-state depository institution as defined in Subsection 7-1-103 (25), which may conduct business in this state under Section 7-1-702, whose deposits are insured by an agency of the federal government, may be certified as a qualified depository eligible to receive public funds on deposit if it meets all of the following criteria.
	A.  Before April 1 of each year, pay to the Department of Financial Institutions an annual certification fee as described in section 51-7-18.1.(8);
	B.  Within 30 days of the close of each calendar quarter, submit a report of condition in the form prescribed by the Commissioner of Financial Institutions.  The Commissioner may require any additional reports as may be considered necessary to determine the character and condition of the institution's assets, deposits and other liabilities, and its capital and to ensure compliance with the Money Management Act, the rules of the Money Management Council, and any order issued pursuant to an action of the Council.  All reports shall be verified by oath or affirmation of the president or a authorized vice president of the institution.  Any officer who knowingly makes or causes to be made any false statement or report to the Commissioner or any false entry in the books or accounts of the institution is guilty of a class A misdemeanor, as authorized in Section 51-7-18.1(3((d).
	C.  Within 10 business days of the end of each month, file a report with the Commissioner of Financial Institutions of the amount of public funds held on the form prescribed by this rule.  The Commissioner may require more frequent reporting if determined that it is necessary to protect public treasurers and to ensure compliance with the Money Management Act, the rules of the Money Management Council or any order issued pursuant to an action of the Council.  All reports shall be verified by the oath or affirmation of the president or a authorized vice president of the institution.  Any officer who knowingly makes or causes to be made any false statement or report to the Commissioner or any false entry in the books or accounts of the institution is guilty of a class A misdemeanor, as authorized by 51-7-18.(3)(d).
	D.  Have and maintain a positive amount of capital as defined in R628-11-4-B.

R628-12-5.  Notification of Certification.
	Not less than quarterly, the Money Management Council shall prepare or cause to be prepared a list of all qualified depositories and the maximum amount of public funds that each is eligible to hold under R628-11.  This list shall be distributed to each public treasurer via US Postal Service or electronic means.  Additions and deletions shall be made on the list for the next successive quarter.

R628-12-6.  Examination of Qualified Depositories.
	The Commissioner shall have the right to examine the books and records of any qualified depository if the Commissioner determines that examination is necessary to ascertain the character and condition of its assets, its deposits and other liabilities, and its capital and to ensure compliance with the Money Management Act, the rules of the Money Management Council, and any order issued pursuant to an action of the Council.

R628-12-7.  Grounds for Termination of Status as a Qualified Depository.
	Any of the following events constitutes grounds for termination of a depository institution's status as a qualified depository and immediate relinquishment of all public funds deposits:
	A.  Termination of the institution's federal deposit insurance.
	B.  Failure to pay the annual certification fee.
	C.  Failure to file the required financial reports.
	D.  Failure to maintain a positive amount of capital as defined in R628-11-4-B.
	E.  Making any false statement or filing any false report with the Commissioner.
	F.  Accepting, receiving or renewing deposits of public funds in excess of the maximum amount of public funds allowed.
	G.  Failure to comply with a written order issued by the Commissioner pursuant to Section 51-7-18.1(7) within 15 days of receipt of the order.
	H.  Request by a depository institution to be removed from the list of qualified depositories.

R628-12-8.  Procedures for Termination and Reinstatement of Status as a Qualified Depository.
	A.  If the Money Management Council determines that the grounds for termination of a depository institution's status as a qualified depository exist, upon the vote of at least three members of the Money Management Council, a depository institution may be terminated as a qualified depository.  Termination will be effective upon service of notice to the institution of the Council's action.  Notice of termination will state the grounds upon which the Council acted and the remedies required to cure the violation.
	B.  After the date of service of notice of termination as a qualified depository, the institution shall not accept, receive or renew any deposits of public funds until specifically authorized in writing by the Commissioner and all existing accounts shall be transferred to a qualified depository.
	C.  An institution may be reinstated as a qualified depository upon the written authorization of the Commissioner, if it has corrected the violation which constituted grounds for termination.

KEY:  public investments, banking law, financial institutions
Date of Enactment or Last Substantive Amendment:  1990
Notice of Continuation:  February 26, 2016
Authorizing, and Implemented or Interpreted Law:  51-7-3(21); 51-7-18(2)(b); 7-1-102, 103(36)