35-312 - Arizona Statutes

35-312. Eligible depositories; collateral A. Any eligible depository that receives an investment or any deposit of treasury monies in excess of the amount insured by an instrumentality of the United States shall collateralize those deposits with any of the following: 1. Securities listed in section 35-313, subsection A, paragraphs 1 and 3. 2. State treasurer's warrant notes. 3. The safekeeping receipt of a federal reserve bank or any bank located in a reserve city, or any bank authorized to do business in this state, whose combined capital, surplus and outstanding capital notes and debentures on the date of the safekeeping receipt are one hundred million dollars or more, evidencing the deposit therein of any securities or instruments described in this section. A safekeeping receipt shall not qualify as security, if issued by a bank to secure its own public deposits, unless issued directly through its trust department. The safekeeping receipt shall show upon its face that it is issued for the account of the state treasurer and shall be delivered to the state treasurer. B. The securities, warrants or safekeeping receipt for those items shall be accepted at market value equal to one hundred two per cent of the deposit liability to the state treasurer, and, if at any time their market value becomes less than one hundred two per cent of the deposit liability to the state treasurer, additional items required to guarantee deposits shall be deposited immediately with the state treasurer by the eligible depository. When items pledged as collateral mature or are called for redemption, the cash received for the item shall be held in place of the items until the eligible depository has obtained a written release or provided substitute securities, instruments or warrants. C. The deposit of securities, warrants or a safekeeping receipt must be such that the eligible depository will promptly pay to the state treasurer monies in its custody, upon lawful demand, and will, when required by law, pay the monies to the state treasurer. D. The securities, warrants or safekeeping receipt of an eligible depository shall be deposited with the state treasurer, and the state treasurer is the custodian of those items. The state treasurer may then deposit with the eligible depository monies then in his possession in accordance with this article. E. Eligible depositories shall report to the state treasurer monthly and upon demand the par and market value of any pledged collateral and the total deposits of the state treasurer.