69C-2.028. Ownership of Collateral by an Operating Subsidiary of the Qualified Public Depository

Collateral securing public deposits may, at the discretion of the qualified public depository, be owned in the name of an operating subsidiary if: (1) 100% of the stock of the operating subsidiary is owned and controlled by the qualified public depository; (2) the operating subsidiary is a party to and bound by all the terms of Form DFS-J1-1000, Contingent Liability Agreement, incorporated by reference in Rule 69C-2.005, F.A.C.; (3) the operating subsidiary is a party to and bound by all the terms of Form DFS-J1-1001, Collateral Control Agreement, incorporated by reference in Rule 69C-2.004, F.A.C.; (4) the operating subsidiary is a party to and bound by all the terms of DFS-J1-1014, Cash Arrangement Agreement, incorporated by reference in Rule 69C-2.004, F.A.C., when using cash as collateral and the Chief Financial Officer as the custodian; (5) both the board of directors for the qualified public depository and the board of directors for the operating subsidiary have approved Forms DFS-J1-1000, Contingent Liability Agreement, incorporated by reference in Rule 69C-2.005, F.A.C.; DFS-J1-1001, Collateral Control Agreement, incorporated by reference in Rule 69C-2.004, F.A.C.; and DFS-J1-1014, Cash Arrangement Agreement, incorporated by reference in Rule 69C-2.004, F.A.C., which must be reflected in or on: (a) the minutes of each respective board; (b) Form DFS-J1-1511, Qualified Public Depository Resolutions, incorporated by reference in Rule 69C-2.005, F.A.C., completed by the qualified public depository; and (c) Form DFS-J1-1512, Operating Subsidiary Resolutions, incorporated by reference in Rule 69C-2.005, F.A.C., completed by the operating subsidiary; (6) the Chief Financial Officer does not disapprove the ownership of the collateral by the operating subsidiary as determined within his or her discretionary powers set forth in section 280.041(6), F.S.; and (7) the qualified public depository remains fully responsible and accountable for the actions of its operating subsidiary and is subject to administrative action pursuant to chapter 280, F.S.