§ 47–351.08. Collateral and reporting requirements.

(a) Except for securities directly purchased without a repurchase agreement and money market funds, an eligible financial institution must at all times provide collateral equal to at least 102% of the District funds held by the eligible financial institution for deposits and investments that are not fully federally insured.

(b) The Mayor, or the CFO pursuant to § 47-351.02(c), may accept as collateral any combination of the following:

(1) Bonds, bills, or notes for which the interest and principal are guaranteed by the United States government;

(2) Securities of a quasi-governmental corporation;

(3) Investment grade obligations of the District or a state or local government;

(4) Collateralized mortgage obligations; or

(5) Letters of credit issued by a Federal Home Loan Bank.

(c) The Mayor, or the CFO pursuant to § 47-351.02(c), may at any time classify the use of a particular type of collateral as ineligible.

(d) The Mayor, or the CFO pursuant to § 47-351.02(c), may at any time require that collateral exceed 102% of the District funds held for deposit or investment.

(e) The Mayor, or the CFO pursuant to § 47-351.02(c), shall require the eligible financial institution to place required collateral in a joint custody account established for the benefit of the District at the Federal Reserve Bank under procedures of the Federal Reserve Bank, or in an independent third-party insured institution. Collateral for investments may be placed at a third-party insured institution customer account in a Federal Reserve Bank with the approval of the Mayor, or the CFO pursuant to § 47-351.02(c).

(f) Upon written approval of the Mayor, or the CFO pursuant to § 47-351.02(c), an eligible financial institution may substitute collateral of greater or equivalent value from the various types listed in subsection (b) of this section.

(g) An eligible financial institution may not withdraw collateral previously pledged without the prior approval of the Mayor, or the CFO pursuant to § 47-351.02(c).

(h) An eligible financial institution shall submit to the Mayor, or the CFO pursuant to § 47-351.02(c), monthly verified reports that list all segregated collateral for District funds and its market value. The report shall also include the average daily balance of the amount of District funds on deposit or invested for the previous month. An insured institution shall submit copies of its quarterly call reports within 45 days after each fiscal quarter. A noninsured institution shall submit its Form 10K or annual financial statements within 60 days after each fiscal year.

(Mar. 18, 1998, D.C. Law 12-56, § 2(c), 44 DCR 6933; Apr. 20, 1999, D.C. Law 12-264, § 52(d), 46 DCR 2118; Apr. 12, 2000, D.C. Law 13-91, § 156(a), 47 DCR 520; June 16, 2006, D.C. Law 16-125, § 2(b), 53 DCR 4707; Oct. 22, 2015, D.C. Law 21-36, § 7112, 62 DCR 10905.)

Prior Codifications

1981 Ed., § 47-351.8.

Section References

This section is referenced in § 47-351.11 and § 47-351.13.

Effect of Amendments

D.C. Law 13-91 amending subsec. (h) struck the word “Noninsured” and inserted the word “noninsured” in its place.

D.C. Law 16-125, in par. (b)(2), deleted “or”; in par. (b)(3), substituted “; or” for a period at the end; and added par. (b)(4).

The 2015 amendment by D.C. Law 21-36 added (b)(5) and made related changes.

Emergency Legislation

See Historical and Statutory Notes following § 47-351.01.

For temporary (90 days) amendment of this section, see § 7082 of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).