Regulatory Alerts2011-08-09
South Dakota Division of Banking Public Deposit Guidance 2008
The South Dakota Division of Banking issued guidance to clarify public deposit requirements following changes to FDIC insurance limits and examination inconsistencies. The document mandates that state-chartered institutions segregate public funds by interest-bearing and non-interest-bearing account types and pledge security equal to 100% of deposits exceeding FDIC coverage. It further specifies that only investment securities permissible under state law are acceptable for pledging and notes the temporary nature of the adjusted insurance limits through December 31, 2009.
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