April 17, 2014
STATE BANKING BOARD
RULE PDP4
PERTAINING TO TITLE 11, ARTICLE 10.5, SECTION 107
COLORADO REVISED STATUTES
STATEMENT OF BASIS, PURPOSE AND SPECIFIC AUTHORITY
Statutory Basis
The Public Deposit Protection Act (PDPA) establishes standards and procedures to ensure the preservation and protection of public funds on deposit in a bank that are ineligible for Federal Deposit Insurance Corporation deposit insurance.Rule PDP4 establishes the criteria to value eligible collateral pledged to the PDPA program.An emergency rulemaking is necessary for PDP4 because it establishes the market values of the eligible collateral in PDP3.Reference numbers must be updated on PDP4 to match the revisions to PDP3.Rule PDP3 is expected to be revised by the Banking Board at the April 17, 2014 meeting.
The proposed revisions meet the criteria for establishing current market value of eligible collateral established in Section 11-10.5-107(1)(c).The proposed PDP4 revisions will only update the reference numbers to match those outlined in PDP3 and not changeexisting valuations of any of the collateral that remain eligible in PDP3.In addition, Paragraph PDP4 (E) will be deleted in its entirety, since it establishes the market value of PDP3 (E), acceptances and negotiable certificates of deposits, which will be deleted with the changes to PDP3.
Specific Purpose of this Rulemaking
This emergency rulemakingmatches the valuation of collateral by rule PDP4 to the revisionsin rule PDP3.The change will allow the Division to continuewith itscurrent valuation standards of collateral pledged to the PDPA.The proposedemergency rulemakingis necessary to continue to preserve and protect public funds as required by Section 11-10.5-107, C.R.S.
Rulemaking Authority
Pursuant to sections 11-101-102, 11-102-104(1)(a),11-10.5-102, and 11-10.5-105, and 11-10.5-107C.R.S., the Colorado State Banking Board shall have the authority to amend rules related to the Public Deposit Protection Act.