DEPARTMENT OF REGULATORY AGENCIES

DIVISION OF BANKING

RULES OF THE COLORADO STATE BANKING BOARD
PERTAINING TO THE PUBLIC DEPOSIT PROTECTION ACT
3 CCR 701-4

EMERGENCY RULE

PDP3 – LIST OF APPROVED ELIGIBLE COLLATERAL INSTRUMENTS AND OBLIGATIONS

Section 24-4-103(6) of the Colorado Revised Statutes (C.R.S.) authorizes the Division of Banking (Division) to issue an emergency rule if the Division finds that the immediate adoption of the rule is imperatively necessary to comply with a state or federal law or federal regulation or for the preservation of public health, safety, or welfare and compliance with the requirements of this section would be contrary to the public interest.

Section 1. Authority
Section 2. Scope and Purpose
Section 3. Applicability
Section 4. Effective Date

Section 1.	Authority

The Division issues the following emergency amendment to Banking Board Rule PDP3, List of Approved Eligible Collateral Instruments and Obligations (PDP3), according to the authority found in Sections 11-101-102, 11-102-104(1)(a), 11-10.5-102, 11-10.5-105, and 11-10.5-107, C.R.S.

Section 2.	Scope and Purpose

The Colorado State Banking Board finds that immediate adoption of this rule is imperatively necessary to comply with a state or a federal law or federal regulation or for the preservation of public health, safety or welfare and that compliance with the rulemaking requirements of section 24-4-103, C.R.S., applicable to non-emergency rules, including prior notice, would be contrary to the public interest. The Public Deposit Protection Act (PDPA), Title 11 Article 10.5, provides protection for public funds held on deposit at eligible public depositories. Due to a scrivener’s error, paragraph G of PDP3 includes a 50 percent limitation of certain securities. Without an emergency amendment to PDP3, the amount of public deposits that an eligible public depository may legally accept is reduced, and, in the event of an involuntary liquidation, the Federal Deposit Insurance Corporation’s deposit insurance coverage and PDPA coverage determinations may be adversely affected. Wherefore, the Colorado State Banking Board, pursuant to section 24-4-103(6), C.R.S. has an obvious and stated need to immediately adopt this rule and restore the status quo ante.

Pursuant to sections 11-102-104(1)(a), 11-10.5-105, and 11-10.5-107, C.R.S., the Colorado State Banking Board shall have the authority to amend rules related to the Public Deposit Protection Act. The specific purpose of this emergency rule is to correct a scrivener’s error that resulted in an inadvertent, substantive modification of PDP3. Paragraph C has been amended to comply with the incorporation by reference requirements of section 24-4-103(12.5), C.R.S.

Section 3.	Applicability

This rule applies to all Colorado state chartered commercial banks and national banks that have been certified as eligible public depositories, pursuant to sections 11-102-104(1)(a), 11-10.5-102, 11-10.5-105 and 11-10.5-107, C.R.S. 

Section 4.	Effective Date

This emergency rule is effective March 20, 2014.