Z-1159               _______________________________________________

                                                   SENATE BILL NO. 4593

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senators Moore, Sellar and Rasmussen; by request of State Treasurer

Read first time 1/16/86 and referred to Committee on Financial Institutions.

AN ACT Relating to deposit of public funds; and amending RCW 39.58.135 and 39.58.040.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 19, chapter 177, Laws of 1984 and RCW 39.58.135 are each amended to read as follows:

          Notwithstanding RCW 39.58.130, (1) aggregate deposits received by a qualified public depositary from all public treasurers shall not exceed at any time ((three hundred)) one hundred fifty percent of the value of the depositary's net worth as of the close of business of the most recent calendar quarter, nor (2) shall the aggregate deposits received by any qualified public depositary exceed thirty percent of the total aggregate deposits of all public treasurers in all depositaries as determined by the public deposit protection commission.  However, a qualified public depositary may receive deposits in excess of the limits provided in this section if eligible securities, as prescribed in RCW 39.58.050, are pledged as collateral in an amount equal to one hundred percent of the value of deposits received in excess of the limitations prescribed in this section.

        Sec. 2.  Section 4, chapter 193, Laws of 1969 ex. sess. as last amended by section 12, chapter 177, Laws of 1984 and RCW 39.58.040 are each amended to read as follows:

          The commission shall have power (1) to make and enforce regulations necessary and proper to the full and complete performance of its functions under this chapter; (2) to require any qualified public depositary to furnish such information dealing  with public deposits and the exact status of its net worth as the commission shall request.  Any public depositary which refuses or neglects to give promptly and accurately or to allow verification of any information so requested shall no longer be a qualified public depositary and shall be excluded from the right to receive or hold public deposits until such time as the commission shall acknowledge that such depositary has furnished the information requested; (3) to take such action as it deems best for the protection, collection, compromise or settlement of any claim arising in case of loss; (4) to prescribe regulations, subject to this chapter, fixing the requirements for qualification of financial institutions as public depositaries, and fixing other terms and conditions consistent with this chapter, under which public deposits may be received and held; (5) to make and enforce regulations setting forth criteria establishing minimum standards for the financial condition of bank and thrift depositaries and, if the minimum standards are not met, providing for additional collateral requirements or restrictions regarding a depositary's right to receive or hold public deposits.  (6) to fix the official date on which any loss shall be deemed to have occurred taking into consideration the orders, rules and regulations of supervisory authority as they affect the failure or inability of a qualified public depositary to repay public deposits in full; (((6))) (7) in case loss occurs in more than one qualified public depositary, to determine the allocation and time of payment of any sums due to public depositors under this chapter.