Regulatory Alerts2004-01-01
Regulatory Mailing RM200 4-01: Certificate of Deposit Account Registry Service
The Kansas Office of the State Bank Commissioner issued this mailing to inform state-chartered banks that the Kansas Attorney General has approved the use of the Certificate of Deposit Account Registry Service for investing idle governmental funds. The document explains that CDARS allows local banks to place large deposits with network members to ensure full FDIC insurance while keeping funds available for local community use. Compliance with K.S.A. 12-1675(b)(2) requires that the receiving institution be located in the required area, receive reciprocal deposits, and ensure all participating institutions are within the U.S. with CDs eligible for full coverage.
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