Bill Text: OR HB2536 | 2011 | Regular Session | Introduced

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Bill Title: Relating to depositories of public funds.

Sponsorship: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2536 Detail]

Download: Oregon-2011-HB2536-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1193

                         House Bill 2536

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Revenue)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Modifies amount of minimum collateral requirement for
depositories of public funds that hold uninsured public funds.

                        A BILL FOR AN ACT
Relating to depositories of public funds; creating new
  provisions; and amending ORS 295.001 and 295.018.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 295.001 is amended to read:
  295.001. As used in ORS 295.001 to 295.108, unless the context
requires otherwise:
  (1) 'Adequately capitalized' means a bank depository that is
classified as adequately capitalized by its primary federal
regulatory authority.
  (2) 'Bank depository' means an insured institution or trust
company that:
  (a) Maintains a head office or branch in this state in the
capacity of an insured institution or trust company; and
  (b) Complies with ORS 295.008.
  (3) 'Business day' means any day other than a federal or State
of Oregon legal holiday or a day on which offices of the State of
Oregon are otherwise authorized by law to remain closed.
  (4) 'Closed depository' means a bank depository that is subject
to a loss.
  (5) 'Credit union depository' means a credit union as defined
in ORS 723.006 or a federal credit union if:
  (a) The shares and deposits of the credit union or federal
credit union are insured by the National Credit Union Share
Insurance Fund; and
  (b) The credit union or federal credit union maintains a head
office or branch in this state in the capacity of a credit union
or federal credit union.
  (6) 'Custodian bank' or 'custodian' means one of the following
institutions designated by the bank depository for its own
account:
  (a) The Federal Home Loan Bank designated to serve this state,
or any branch of that bank; or
  (b) Any insured institution or trust company that:
  (A) Is authorized to accept deposits or transact trust business
in this state;
  (B) Complies with ORS 295.008; and
  (C) Has been approved by the State Treasurer to serve as a
custodian bank, if the State Treasurer has approved custodians
under ORS 295.008.
  (7) 'Custodian's receipt' or 'receipt' means a document issued
by a custodian bank describing the securities deposited with it
by a bank depository to secure public fund deposits.
  (8) 'Depository' means a bank depository or a credit union
depository.
  (9) 'Financial institution outside this state' means a
financial institution, as defined in ORS 706.008, that is not an
extranational institution, as defined in ORS 706.008, and is not
a bank depository or credit union depository, as defined in this
section.
  (10) 'Insured institution' means an insured institution as
defined in ORS 706.008.
  (11) 'Loss' means the issuance of an order by a regulatory or
supervisory authority or a court of competent jurisdiction:
  (a) Restraining a bank depository from making payments of
deposit liabilities; or
  (b) Appointing a receiver for a depository.
  (12) 'Maximum liability' means a sum equal to 10 percent of the
greater of:
  (a) All uninsured public funds deposits held by the bank
depository as shown on the date of its most recent treasurer
report; or
  (b) The average of the balances of uninsured public funds
deposits on the last two immediately preceding treasurer reports.
  (13) 'Minimum collateral requirement' for a bank depository on
any given date means a sum equal to:
  (a) For a well capitalized bank depository that has not been
required to increase its collateral pursuant to ORS 295.018,
  { - 10 - }   { +  ___ + } percent of the greater of:
  (A) All uninsured public funds held by the bank depository, as
shown on the most recent treasurer report;
  (B) The average of the balances of uninsured public funds held
by the bank depository, as shown on the last two immediately
preceding treasurer reports; or
  (C) An amount otherwise prescribed in ORS 295.001 to 295.108.
  (b) For a well capitalized bank depository that has been
required to increase its collateral pursuant to ORS 295.018, the
percentage required by the State Treasurer pursuant to ORS
295.018 multiplied by the greater of:
  (A) All uninsured public funds held by the bank depository, as
shown on the most recent treasurer report;
  (B) The average of the balances of uninsured public funds held
by the bank depository, as shown on the last two immediately
preceding treasurer reports; or
  (C) An amount otherwise prescribed in ORS 295.001 to 295.108.
  (c) For an adequately capitalized bank depository or an
undercapitalized bank depository,   { - 110 - }   { +  ___ + }
percent of the greater of:
  (A) All uninsured public funds held by the bank depository; or
  (B) The average of the balances of uninsured public funds held
by the bank depository, as shown on the last two immediately
preceding treasurer reports.
  (14) 'Net worth' of a bank depository means the total
risk-based capital of the bank depository, as shown on the
immediately preceding report of condition and income, and may
include capital notes and debentures that are subordinate to the
interests of depositors.
  (15) 'Pledge agreement' means a written agreement among an
insured institution or trust company, the State Treasurer and a
custodian that pledges the securities deposited by the insured
institution or trust company with the custodian as collateral for
deposits of uninsured public funds held by the insured
institution or trust company. The agreement must be approved by
the board of directors or loan committee of the insured
institution or trust company and must be continuously maintained
as a written record of the insured institution or trust company.
  (16) 'Public funds' or 'funds' means funds under the control or
in the custody of a public official by virtue of office.
  (17) 'Public official' means each officer or employee of this
state or any agency, political subdivision or public or municipal
corporation thereof, or any housing authority, who by law is made
the custodian of or has control of any public funds.
  (18) 'Report of condition and income' means the quarterly
report submitted to a bank depository's primary federal
regulatory authority.
  (19) 'Security' or 'securities' means:
  (a) Obligations of the United States, including those of its
agencies and instrumentalities and of government sponsored
enterprises;
  (b) Obligations of the International Bank for Reconstruction
and Development;
  (c) Bonds of any state of the United States:
  (A) That are rated in one of the four highest grades by a
recognized investment service organization that has been engaged
regularly and continuously for a period of not less than 10 years
in rating state and municipal bonds; or
  (B) Having once been so rated are ruled to be eligible
securities for the purposes of ORS 295.001 to 295.108,
notwithstanding the loss of such rating;
  (d) Bonds of any county, city, school district, port district
or other public body in the United States payable from or secured
by ad valorem taxes and that meet the rating requirement or are
ruled to be eligible securities as provided in paragraph (c) of
this subsection;
  (e) Bonds of any county, city, school district, port district
or other public body issued pursuant to the Constitution or
statutes of the State of Oregon or the charter or ordinances of
any county or city within the State of Oregon, if the bonds have
a long-term rating of AA or better;
  (f) With the permission of the State Treasurer and in
accordance with rules adopted by the State Treasurer, loans made
to any county, city, school district, port district or other
public body in the State of Oregon, if the borrower has not been
in default with respect to the payment of principal or interest
on any of its loans within the preceding 10 years or during the
period of its existence if that is less than 10 years;
  (g) With the permission of the State Treasurer and in
accordance with rules adopted by the State Treasurer, bond
anticipation notes issued, sold or assumed by an authority under
ORS 441.560;
  (h) Bonds, notes, letters of credit or other securities or
evidence of indebtedness constituting the direct and general
obligation of a federal home loan bank or Federal Reserve bank;
  (i) Debt obligations of domestic corporations that are rated in
one of the three highest grades by a recognized investment
service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating
corporate debt obligations; and
  (j) Collateralized mortgage obligations and real estate
mortgage investment conduits that are rated in one of the two
highest grades by a recognized investment service organization
that has been engaged regularly and continuously for a period of
not less than 10 years in rating corporate debt obligations.
  (20) 'Treasurer report' means a written report signed or
authenticated by an officer of a bank depository that has in its
possession uninsured public funds deposits setting forth as of
the close of business on a specified date:

  (a) The total amount of uninsured public funds on deposit with
the bank depository;
  (b) The total amount of public funds on deposit with the bank
depository;
  (c) The net worth of the bank depository;
  (d) The amount and nature of eligible collateral then on
deposit with its custodian to collateralize the bank depository's
public funds deposits; and
  (e) The identity of its custodian.
  (21) 'Treasurer report due date' means a date not less than 10
business days after the date a bank depository's report of
condition and income is due to be submitted.
  (22) 'Trust company' means a trust company as defined in ORS
706.008.
  (23) 'Undercapitalized' means a bank depository that is
classified as undercapitalized, significantly undercapitalized or
critically undercapitalized by its primary federal regulatory
authority.
  (24) 'Uninsured public funds' or 'uninsured public funds
deposits' means public funds deposited in a bank depository that
exceed the amounts insured or guaranteed as described in ORS
295.002 (1)(a) and (b) and does not include public funds
deposited in a certificate of deposit or time deposit under ORS
295.004.
  (25) 'Value' means the current market value of securities.
  (26) 'Well capitalized' means a bank depository that is
classified as well capitalized by its primary federal regulatory
authority.
  SECTION 2. ORS 295.001, as amended by section 1, chapter 101,
Oregon Laws 2010, is amended to read:
  295.001. As used in ORS 295.001 to 295.108, unless the context
requires otherwise:
  (1) 'Adequately capitalized' means a depository that is
classified as adequately capitalized by the depository's primary
federal regulatory authority.
  (2) 'Bank depository' means an insured institution or trust
company that:
  (a) Maintains a head office or branch in this state in the
capacity of an insured institution or trust company; and
  (b) Complies with ORS 295.008.
  (3) 'Business day' means a day other than a federal or State of
Oregon legal holiday or a day other than a day on which offices
of the State of Oregon are otherwise authorized by law to remain
closed.
  (4) 'Closed depository' means a depository that is subject to a
loss.
  (5) 'Credit union depository' means a credit union as defined
in ORS 723.006 or a federal credit union if:
  (a) The shares and deposits of the credit union or federal
credit union are insured by the National Credit Union Share
Insurance Fund;
  (b) The credit union or federal credit union maintains a head
office or branch in this state in the capacity of a credit union
or federal credit union; and
  (c) The credit union or federal credit union complies with ORS
295.008.
  (6) 'Custodian' means one of the following institutions that a
depository designates for the depository's own account:
  (a) The Federal Home Loan Bank designated to serve this state,
or a branch of the Federal Home Loan Bank; or
  (b) An insured institution, trust company or credit union that:
  (A) Is authorized to accept deposits or transact trust business
in this state;
  (B) Complies with ORS 295.008; and

  (C) Has been approved by the State Treasurer to serve as a
custodian, if the State Treasurer has approved custodians under
ORS 295.008.
  (7) 'Custodian's receipt' or 'receipt' means a document issued
by a custodian that describes the securities that a depository
deposited with the custodian to secure public fund deposits.
  (8) 'Depository' means a bank depository or a credit union
depository.
  (9) 'Financial institution outside this state' means a
financial institution, as defined in ORS 706.008, that is not an
extranational institution, as defined in ORS 706.008, and is not
a bank depository or credit union depository, as defined in this
section.
  (10) 'Insured institution' means an insured institution as
defined in ORS 706.008.
  (11) 'Loss' means the issuance of an order by a regulatory or
supervisory authority or a court of competent jurisdiction that:
  (a) Restrains a depository from making payments of deposit
liabilities; or
  (b) Appoints a receiver for a depository.
  (12) 'Maximum liability' means a sum equal to 10 percent of the
greater of:
  (a) All uninsured public funds deposits held by a depository,
as shown on the date of the depository's most recent treasurer
report; or
  (b) The average of the balances of uninsured public funds
deposits on the last two immediately preceding treasurer reports.
  (13) 'Minimum collateral requirement' for a depository on any
given date means a sum equal to:
  (a) For a well capitalized depository that the State Treasurer
has not required to increase the depository's collateral pursuant
to ORS 295.018,   { - 10 - }   { +  ___ + } percent of the
greater of:
  (A) All uninsured public funds held by the depository, as shown
on the most recent treasurer report;
  (B) The average of the balances of uninsured public funds held
by the depository, as shown on the last two immediately preceding
treasurer reports; or
  (C) An amount otherwise prescribed in ORS 295.001 to 295.108.
  (b) For a well capitalized depository that the State Treasurer
required to increase the depository's collateral pursuant to ORS
295.018, the percentage the State Treasurer required pursuant to
ORS 295.018 multiplied by the greater of:
  (A) All uninsured public funds held by the depository, as shown
on the most recent treasurer report;
  (B) The average of the balances of uninsured public funds held
by the depository, as shown on the last two immediately preceding
treasurer reports; or
  (C) An amount otherwise prescribed in ORS 295.001 to 295.108.
  (c) For an adequately capitalized depository or an
undercapitalized depository,   { - 110 - }   { +  ___ + } percent
of the greater of:
  (A) All uninsured public funds held by the depository; or
  (B) The average of the balances of uninsured public funds held
by the depository, as shown on the last two immediately preceding
treasurer reports.
  (14) 'Net worth' means a depository's total risk-based capital,
as shown on the immediately preceding report of condition and
income, and may include capital notes and debentures that are
subordinate to the interests of depositors.
  (15) 'Pledge agreement' means a written agreement among an
insured institution, trust company or credit union, the State
Treasurer and a custodian that pledges the securities the insured
institution, trust company or credit union deposits with the
custodian as collateral for deposits of uninsured public funds
that the insured institution, trust company or credit union
holds.  The board of directors or loan committee of the insured
institution, trust company or credit union must approve the
agreement and must continuously maintain the agreement as a
written record of the insured institution, trust company or
credit union.
  (16) 'Public funds' or 'funds' means funds that a public
official has custody of or controls by virtue of office.
  (17) 'Public official' means an officer or employee of this
state or an agency, political subdivision or public or municipal
corporation of this state, or a housing authority, that by law is
the custodian of or has control of public funds.
  (18) 'Report of condition and income' means the quarterly
report a depository submits to the depository's primary federal
regulatory authority.
  (19) 'Security' or 'securities' means:
  (a) Obligations of the United States, including those of
agencies and instrumentalities of the United States, and of
government sponsored enterprises;
  (b) Obligations of the International Bank for Reconstruction
and Development;
  (c) Bonds of a state of the United States that:
  (A) Are rated in one of the four highest grades by a recognized
investment service organization that has engaged regularly and
continuously for a period of not less than 10 years in rating
state and municipal bonds; or
  (B) Having once been rated in accordance with subparagraph (A)
of this paragraph, are ruled to be eligible securities for the
purposes of ORS 295.001 to 295.108, notwithstanding the loss of
the rating;
  (d) Bonds of a county, city, school district, port district or
other public body in the United States that are payable from or
secured by ad valorem taxes and that meet the rating requirement
or are ruled to be eligible securities as provided in paragraph
(c) of this subsection;
  (e) Bonds of a county, city, school district, port district or
other public body that are issued pursuant to the Constitution or
statutes of the State of Oregon or the charter or ordinances of a
county or city within the State of Oregon, if the bonds meet the
rating requirement or are ruled to be eligible securities as
provided in paragraph (c) of this subsection;
  (f) With the permission of the State Treasurer and in
accordance with rules the State Treasurer adopts, loans made to a
county, city, school district, port district or other public body
in the State of Oregon, if the borrower has not defaulted with
respect to the payment of principal or interest on any of the
borrower's loans within the preceding 10 years or during the
period of the borrower's existence if the borrower has existed
for less than 10 years;
  (g) With the permission of the State Treasurer and in
accordance with rules the State Treasurer adopts, bond
anticipation notes that an authority issues, sells or assumes
under ORS 441.560;
  (h) Bonds, notes, letters of credit or other securities or
evidence of indebtedness constituting the direct and general
obligation of a federal home loan bank or Federal Reserve bank;
  (i) Debt obligations of domestic corporations that are rated in
one of the three highest grades by a recognized investment
service organization that has engaged regularly and continuously
for a period of not less than 10 years in rating corporate debt
obligations; and
  (j) Collateralized mortgage obligations and real estate
mortgage investment conduits that are rated in one of the two
highest grades by a recognized investment service organization
that has engaged regularly and continuously for a period of not
less than 10 years in rating corporate debt obligations.

  (20) 'Treasurer report' means a written report that an officer
of a depository that holds uninsured public funds deposits has
signed or authenticated and that sets forth as of the close of
business on a specified date:
  (a) The total amount of uninsured public funds on deposit with
the depository;
  (b) The total amount of public funds on deposit with the
depository;
  (c) The net worth of the depository;
  (d) The amount and nature of eligible collateral then on
deposit with the depository's custodian to collateralize the
depository's public funds deposits; and
  (e) The identity of the depository's custodian.
  (21) 'Treasurer report due date' means a date not less than 10
business days after the date a depository's report of condition
and income is due to be submitted.
  (22) 'Trust company' means a trust company as defined in ORS
706.008.
  (23) 'Undercapitalized' means a depository that the
depository's primary federal regulatory authority has classified
as undercapitalized, significantly undercapitalized or critically
undercapitalized.
  (24)(a) 'Uninsured public funds' or 'uninsured public funds
deposits' means public funds deposited in a depository that
exceed the amounts insured or guaranteed as described in ORS
295.002 (1)(a) and (b).
  (b) 'Uninsured public funds' or 'uninsured public funds
deposits' does not include public funds deposited in a
certificate of deposit or time deposit under ORS 295.004.
  (25) 'Value' means the current market value of securities.
  (26) 'Well capitalized' means a depository that the
depository's primary federal regulatory authority has classified
as well capitalized.
  SECTION 3. ORS 295.018 is amended to read:
  295.018. (1)(a) The State Treasurer may require any bank
depository during any period when it has in its possession any
uninsured public funds deposits to maintain on deposit with its
custodians securities having a value not less than   { - 110 - }
 { +  ___ + } percent of the greater of:
  (A) All uninsured public funds held by the bank depository; or
  (B) The average of the balances of uninsured public funds held
by the bank depository, as shown on the last two immediately
preceding treasurer reports.
  (b) In consultation with the Director of the Department of
Consumer and Business Services, the State Treasurer may permit a
bank depository to increase its collateral as required under
paragraph (a) of this subsection over a period of time specified
by the State Treasurer or may require a bank depository to
increase its collateral to an amount that is less than the amount
specified in paragraph (a) of this subsection.
  (2) An increase in collateral under subsection (1) of this
section shall be ordered upon the advice of the director. If the
bank depository is a national bank or a federally chartered
savings bank or savings and loan association, in giving advice to
the State Treasurer the director may rely exclusively on
information provided to the director by federal regulatory
agencies and by the bank, savings bank or association on forms
prescribed by the director. As a condition of being analyzed and
reviewed by the director, a national bank or a federally
chartered savings bank or savings and loan association shall
agree and consent to provide the director with accurate,
pertinent and timely information.
  (3) If the State Treasurer orders a bank depository to increase
its collateral under subsection (1) of this section, the State
Treasurer shall give notice of the order to the director and the

custodian of the bank depository within one business day after
issuing the order.
  (4) Failure of the director to inform the State Treasurer of
the condition of any bank depository does not give any public
depositor any right or impose any liability on the director. The
State Treasurer shall not be liable to any public depositor or to
any bank depository for increasing or not increasing the
collateral requirement as authorized in subsection (1) of this
section.
  (5) Any bank depository notified by the State Treasurer of the
increased collateral requirement shall:
  (a) Within three business days after receiving the notice,
submit to the State Treasurer and the director the bank
depository's plan for increasing its collateral to the level
required by the State Treasurer under subsection (1) of this
section; and
  (b) Within five business days after receiving approval of its
plan submitted under paragraph (a) of this subsection, or within
a longer period approved by the State Treasurer and the director,
increase its collateral to the level required by the State
Treasurer under subsection (1) of this section and notify the
State Treasurer and the director of its compliance by supplying
copies of the custodian's receipts for, or statement of activity
showing, the increased collateral.
  (6)(a) If the State Treasurer does not receive the notice
required in subsection (5)(b) of this section within the
applicable period under subsection (5)(b) of this section, the
State Treasurer shall immediately send notice to each public
official who has notified the State Treasurer that the public
official has public funds on deposit in that bank depository of
the bank depository's failure to comply.
  (b) If, after giving notice as required by paragraph (a) of
this subsection, the State Treasurer receives notice that the
bank depository is in compliance with the increased collateral
requirements, the State Treasurer shall notify each public
official who was notified under paragraph (a) of this subsection
that the bank depository is once again in compliance.
  (7) A bank depository that does not comply with subsection (5)
of this section may not accept additional uninsured public funds
deposits.
  (8) The collateralization requirement for a bank depository and
the amount of collateral held by a custodian contained in records
received or compiled by the State Treasurer is exempt from public
disclosure unless the public interest requires disclosure in the
particular instance.
  (9) The State Treasurer may require a bank depository that is
required to increase its collateral under subsection (5) of this
section to file the reports required under ORS 295.061 (3).
  SECTION 4. ORS 295.018, as amended by section 8, chapter 101,
Oregon Laws 2010, is amended to read:
  295.018. (1)(a) The State Treasurer may require a depository,
during any period when the depository possesses uninsured public
funds deposits, to maintain on deposit with the depository's
custodians securities that have a value not less than
 { - 110 - }   { +  ___ + } percent of the greater of:
  (A) All uninsured public funds the depository holds; or
  (B) The average of the balances of uninsured public funds the
depository holds, as shown on the last two immediately preceding
treasurer reports.
  (b) In consultation with the Director of the Department of
Consumer and Business Services, the State Treasurer may permit a
depository to increase the depository's collateral as required
under paragraph (a) of this subsection over a period of time the
State Treasurer specifies or may require a depository to increase
the depository's collateral to an amount that is less than the
amount specified in paragraph (a) of this subsection.
  (2) The State Treasurer shall order an increase in collateral
under subsection (1) of this section if the director so advises.
If the depository is a national bank, a federally chartered
savings bank, a savings and loan association or a federal credit
union, in giving advice to the State Treasurer the director may
rely exclusively on information that the federal regulatory
agencies and the bank, savings bank, association or federal
credit union provide to the director on forms the director
prescribes. As a condition of being analyzed and reviewed by the
director, a national bank, a federally chartered savings bank, a
savings and loan association or a federal credit union shall
agree and consent to provide the director with accurate,
pertinent and timely information.
  (3) If the State Treasurer orders a depository to increase the
depository's collateral under subsection (1) of this section, the
State Treasurer shall give notice of the order to the director
and the custodian of the depository within one business day after
issuing the order.
  (4) The director's failure to inform the State Treasurer of the
condition of any depository does not give a public depositor any
right or impose liability on the director. The State Treasurer is
not liable to a public depositor or to a depository for
increasing or not increasing the collateral requirement as
authorized in subsection (1) of this section.
  (5) A depository that the State Treasurer notifies of the
increased collateral requirement shall:
  (a) Within three business days after receiving the notice,
submit to the State Treasurer and the director the depository's
plan to increase the depository's collateral to the level the
State Treasurer requires under subsection (1) of this section;
and
  (b) Within five business days after receiving approval of the
plan the depository submitted under paragraph (a) of this
subsection, or within a longer period approved by the State
Treasurer and the director, increase the depository's collateral
to the level the State Treasurer requires under subsection (1) of
this section and notify the State Treasurer and the director that
the depository has complied by supplying copies of the
custodian's receipts for, or statement of activity showing, the
increased collateral.
  (6)(a) If the State Treasurer does not receive the notice
required in subsection (5)(b) of this section within the
applicable period under subsection (5)(b) of this section, the
State Treasurer shall immediately send, to each public official
who has notified the State Treasurer that the public official has
public funds on deposit in that depository, notice that the
depository has failed to comply.
  (b) If, after giving notice as required by paragraph (a) of
this subsection, the State Treasurer receives notice that the
depository has complied with the increased collateral
requirements, the State Treasurer shall notify each public
official that the State Treasurer notified under paragraph (a) of
this subsection that the depository has complied.
  (7) A depository that does not comply with subsection (5) of
this section may not accept additional uninsured public funds
deposits.
  (8) Records the State Treasurer receives or compiles that
contain the collateralization requirement for a depository and
the amount of collateral a custodian holds are exempt from public
disclosure unless the public interest requires disclosure in the
particular instance.
  (9) The State Treasurer may require a depository that must
increase the depository's collateral under subsection (5) of this
section to file the reports required under ORS 295.061 (3).

  SECTION 5.  { + If a depository's minimum collateral
requirement decreases because of the amendments to ORS 295.001 or
295.018 by sections 1 to 4 of this 2011 Act, the depository may:
  (1) Notify the depository's custodian and the State Treasurer
in writing that the depository's minimum collateral requirement
has decreased, setting forth the depository's new minimum
collateral requirement; and
  (2) With the written approval of the State Treasurer, withdraw
from the depository's custodian securities that exceed the
depository's new minimum collateral requirement. + }
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