Pledging Assets As Security For Deposits Of Public Funds

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Question:

According to the Banking Code of 1965, a bank is supposed to pledge assets as security for deposits of public funds. I cannot find a comprehensive list of what type/title of account is considered to be public funds.

Answer:

Your statutory reference is to state law. Your state banking department is the final source on what they consider to be public funds. (Even if you are a national bank.) However, you might want to look at the instructions for the Report of Condition and Income to see what is classified as public funds there.

First published on BankersOnline.com 7/15/02