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#1567500 - 06/21/11 02:56 PM Collateralized Accounts
Anonymous
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Is it possible to collateralize demand deposit account similar to the way repurchase agreements are collateralized? I've heard this is acceptable for governmental agencies, but not private entities. Any information would be helpful.

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#1567577 - 06/21/11 04:03 PM Re: Collateralized Accounts Anonymous
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
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Check with your state department of banking. This is not a federal issue. In general, it is as you say; i.e. you can pledge securities for public deposits only.
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#1570616 - 06/27/11 08:30 PM Re: Collateralized Accounts Elwood P. Dowd
Sugarbaker Offline
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Joined: Nov 2005
Posts: 265
1.) We are an OCC bank. Does the OCC have any reguations that govern what DDA's can be collateralize(I haven't found anything)?

2.)Our state law (KY) is very vague - it doesn't define public or government entities (I know it should be self explanatory but I need a definition). We have a 501c3 that is requesting pledging for their DDA. Do 501c3's typically fall under "government/public" entities in other states?
Last edited by Sugarbaker; 06/27/11 08:30 PM.
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