In General

(1) Purpose. T.C.A. Title 9, Chapter 4, Part 5 enacted the Collateral Pool for Public Deposits Act of 1990. The Act creates a Collateral Pool as an alternative means for securing public deposits. The purpose of these rules is to establish requirements for admission, participation, and administration of the Collateral Pool as required by and consistent with the Act. (2) Definitions. For the purpose of these rules: (a) Average daily balance means the sum of the average daily demand deposits, the average daily time deposits, and the average daily savings deposits of public depositors held during the calendar month immediately preceding the current month less any applicable Federal Deposit Insurance. (b) Average daily demand deposit means the total by account of all public funds held on a daily basis in demand deposit accounts during the calendar month immediately preceding the current month divided by the number of calendar days in the month. Demand deposit account shall have the meaning as defined by the Board of Governors of the Federal Reserve System, Regulation D, 12 CFR 204, as amended. (c) Average daily time deposit means either: 1. The total by account of all public funds held on a daily basis in time deposit accounts during the calendar month immediately preceding the current month divided by the number of calendar days in the month; or 2. The higher of (i) the actual amount of public funds in time deposit accounts on the last day of the calendar month immediately preceding the current month; or (ii) the sum of the amount of public funds in time deposit accounts on the last day of the two (2) calendar months immediately preceding the current month divided by two (2). Time deposit accounts shall have the meaning as defined by the Board of Governors of the Federal Reserve System, Regulation D, 12 CFR 204, as amended. (d) Average daily savings deposit means either: BANK COLLATERAL POOL CHAPTER 1700-04-01 1. The total by account of all public funds held on a daily basis in savings deposit accounts during the calendar month immediately preceding the current month divided by the number of calendar days in the month; or 2. The sum of the amount of public funds in savings deposit accounts on the last day of the two (2) calendar months immediately preceding the current month divided by two (2). Savings deposit account shall have the meaning as defined by the Board of Governors of the Federal Reserve System, Regulation D, 12 CFR 204, as amended. (e) Federal Deposit Insurance means the sum of the insurance provided by the Federal Deposit Insurance Act on all accounts of public depositors at the qualified public depository; such insurance for public depositors shall be determined in accordance with FDIC Regulations, 12 CFR 330.14, as amended. (f) Person qualified to conduct audits means a person who is certified or licensed to practice public accountancy. Such person may be an employee of the qualified public depository.