Eight Steps To Participating In The Pooled Collateral Program
Participation in the Pooled Collateral Program is voluntary by both the depository institution and public entity. Texas law does not allow counties to participate.
- After the public entity and a depository institution decide to join the program, they jointly submit an application and collateral security agreement. The agreement ensures that both participants agree to the rules of participation so that the deposits are adequately safeguarded.
- The Comptroller approves their participation and grants them access to the program Web site .
- The Comptroller approves the designated custodian trustee(s) and issues a custodian agreement.
- The Comptroller receives notice of a pledge of collateral by the depository institution and prices the collateral daily.
- The depository institution reports the amount of public entity deposits daily on the program website.
- The Comptroller compares the total market value of collateral pledged by the depository institution to the total amount of deposits in the depository institution's pool, and reports the information on the program Web site.
- The public entity reviews the daily ledger balance of their itemized deposits reported to ensure that it is accurate. The public entity can review the depository institution's total pooled collateral amounts compared to the pooled deposits amounts on the program website.
- Once each year, the Comptroller assesses a fee to all participating depository institutions to cover the administrative costs of the program. There is no fee to the public entities for participation.