In this chapter, unless the
context otherwise requires:
(1) "Capitalization" means the measure or measures of
capitalization, other than net worth, of a depositary applying
for designation as or operating as a public depositary pursuant
to this chapter, based upon regulatory standards of financial
institution capitalization adopted by rule or resolution of the
commission after consultation with the director of the department
of financial institutions;
(2) "Collateral" means the particular assets pledged as
security to insure payment or performance of the obligations
under this chapter as enumerated in RCW 39.58.050;
(3) "Commission" means the Washington public deposit
protection commission created under RCW 39.58.030;
(4) "Commission report" means a formal accounting rendered
by all public depositaries to the commission in response to a
demand for specific information made by the commission detailing
pertinent affairs of each public depositary as of the close of
business on a specified date, which is the "commission report
date." "Commission report due date" is the last day for the
timely filing of a commission report;
(5) "Depositary pledge agreement" means a tripartite
agreement executed by the commission with a financial institution
and its designated trustee. Such agreement shall be approved by
the directors or the loan committee of the financial institution
and shall continuously be a record of the financial institution.
New securities may be pledged under this agreement in
substitution of or in addition to securities originally pledged
without executing a new agreement;
(6) "Director of the department of financial institutions"
means the Washington state director of the department of
financial institutions;
(7) "Eligible collateral" means securities which are
enumerated in RCW 39.58.050 (5) and (6) as eligible collateral
for public deposits;
(8) "Financial institution" means any national or state
chartered commercial bank or trust company, savings bank, or
savings association, or branch or branches thereof, located in
this state and lawfully engaged in business;
(9) "Investment deposits" means time deposits, money market
deposit accounts, and savings deposits of public funds available
for investment;
(10) "Liquidity" means the measure or measures of liquidity
of a depositary applying for designation as or operating as a
public depositary pursuant to this chapter, based upon regulatory
standards of financial institution liquidity adopted by rule or
resolution of the commission after consultation with the director
of the department of financial institutions;
(11) "Loss" means the issuance of an order by a regulatory
or supervisory authority or a court of competent jurisdiction (a)
restraining a public depositary from making payments of deposit
liabilities or (b) appointing a receiver for a public depositary;
(12) "Maximum liability," with reference to a public
depositary's liability under this chapter for loss per occurrence
by another public depositary, on any given date means:
(a) A sum equal to ten percent of:
(i) All uninsured public deposits held by a public
depositary that has not incurred a loss by the then most recent
commission report date; or
(ii) The average of the balances of said uninsured public
deposits on the last four immediately preceding reports required
pursuant to RCW 39.58.100, whichever amount is greater; or
(b) Such other sum or measure as the commission may from
time to time set by resolution according to criteria established
by rule, consistent with the commission's broad administrative
discretion to achieve the objective of RCW 39.58.020.
As long as the uninsured public deposits of a public
depositary are one hundred percent collateralized by eligible
collateral as provided for in RCW 39.58.050, the "maximum
liability" of a public depositary that has not incurred a loss
may not exceed the amount set forth in (a) of this subsection.
This definition of "maximum liability" does not limit the
authority of the commission to adjust the collateral requirements
of public depositaries pursuant to RCW 39.58.040;
(13) "Net worth" of a public depositary means (a) the equity
capital as reported to its primary regulatory authority on the
quarterly report of condition or statement of condition, or other
required report required by its primary regulatory authority or
federal deposit insurer, and may include capital notes and
debentures which are subordinate to the interests of depositors,
or (b) equity capital adjusted by rule or resolution of the
commission after consultation with the director of the department
of financial institutions;
(14) "Public deposit" means public funds on deposit with a
public depositary;
(15) "Public depositary" means a financial institution which
does not claim exemption from the payment of any sales or
compensating use or ad valorem taxes under the laws of this
state, which has been approved by the commission to hold public
deposits, and which has segregated for the benefit of the
commission eligible collateral having a value of not less than
its maximum liability;
(16) "Public funds" means moneys under the control of a
treasurer, the state treasurer, or custodian belonging to, or
held for the benefit of, the state or any of its political
subdivisions, public corporations, municipal corporations,
agencies, courts, boards, commissions, or committees, including
moneys held as trustee, agent, or bailee belonging to, or held
for the benefit of, the state or any of its political
subdivisions, public corporations, municipal corporations,
agencies, courts, boards, commissions, or committees;
(17) "Public funds available for investment" means such
public funds as are in excess of the anticipated cash needs
throughout the duration of the contemplated investment period;
(18) "State public depositary" means a Washington
state-chartered financial institution that is authorized as a
public depositary under this chapter;
(19) "State treasurer" means the treasurer of the state of
Washington;
(20) "Treasurer" means a county treasurer, a city treasurer,
a treasurer of any other municipal corporation, and any other
custodian of public funds, except the state treasurer;
(21) "Trustee" means a third-party safekeeping agent which
has completed a depositary pledge agreement with a public
depositary and the commission. Such third-party safekeeping
agent may be the federal reserve bank of San Francisco, the
federal home loan bank of Seattle, or such other third-party
safekeeping agent approved by the commission.
[2009 c 9 § 1; 1996 c 256 § 1; 1994 c 92 § 494; 1984 c 177 § 10; 1983 c 66 § 3; 1977 ex.s. c 95 § 1; 1975 1st ex.s. c 77 § 1; 1973 c 126 § 9; 1969 ex.s. c 193 § 1.]
NOTES:
Alphabetization -- 2009 c 9: "The code reviser shall alphabetize and renumber the definitions in RCW 39.58.010." [2009 c 9 § 19.]
Effective date -- 2009 c 9: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 6, 2009]." [2009 c 9 § 20.]
Severability -- 1983 c 66: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [1983 c 66 § 24.]
Severability -- 1969 ex.s. c 193: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of this act, or the application of the provision to other persons or circumstances is not affected." [1969 ex.s. c 193 § 32.]
Construction -- 1969 ex.s. c 193: "Nothing in this act shall be construed so as to impair the obligation of any contract or agreement entered into prior to its effective date." [1969 ex.s. c 193 § 33.]
City depositaries: Chapter 35.38 RCW.
County depositaries: Chapter 36.48 RCW.
State depositaries: Chapter 43.85 RCW.