A participating depository institution is responsible for pledging sufficient collateral before public deposits are received, and for maintaining sufficient collateral at all times. Collateral is not required for deposits to the extent that the deposits are insured by federal deposit insurance.
A participating depository institution is required to pledge acceptable collateral with an approved custodian trustee to secure the deposits of local public funds. The custodian trustee shall hold the collateral in trust for the benefit of the Pooled Collateral Program.
The Comptroller will determine the market value of collateral pledged by participating depository institutions each day. If the market value of the collateral pledged becomes less than the required amount, the participating depository institution must pledge additional collateral as required under the Pooled Collateral Program.