Title 389 WAC — State Treasurer's Office (Public Deposit Protection Commission)

Chapter 389-06 Public records.

Wash. Admin. Code § 389-06-010 Purpose.

WAC 389-06-010

The purpose of this chapter is to provide rules for the public deposit protection commission to ensure compliance with the provisions of chapter 42.56 RCW relating to public records.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-010, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-020 Description of the public deposit protection commission.

WAC 389-06-020

The public deposit protection commission is the commission established by chapter 39.58 RCW and empowered to perform all duties prescribed by law. The public deposit protection commission shall throughout this chapter, unless context clearly indicates otherwise, be referred to as the "commission."

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-020, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-030 Administrative operations.

WAC 389-06-030

(1) Pursuant to RCW 39.58.220 and WAC 389-12-120, the office of the state treasurer administers the commission.

(2) The administrative office of the state treasurer is in the Legislative Building, Olympia, Washington. Its contact information is:

Mail: Office of the State Treasurer

416 Sid Snyder Ave. S.W., 2nd floor, Room 230

P.O. Box 40200

Olympia, WA 98504-0200

Phone: 360-902-9000

Email: watreas@tre.wa.gov

(3) All communications with the commission including, but not limited to, the submission of materials pertaining to its operations and/or the administration or enforcement of chapter 42.56 RCW and these rules, or requests for copies of the commission's decisions and other matters, should be sent or directed to the administrative office of the state treasurer.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-030, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-040 Public records officer.

WAC 389-06-040

(1) The commission designates the office of the state treasurer's public records officer, ex officio, as the commission's public records officer. The public records officer is responsible for implementing the commission's rules regarding release of public records, coordinating with the commission in this regard, and generally ensuring compliance with the public records disclosure requirements of chapter 42.56 RCW.

(2) The public records officer may choose one or more designees to carry out the responsibilities of this chapter including, but not limited to, processing and responding to public records requests.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-040, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-050 Office hours.

WAC 389-06-050

The commission's public records are available for inspection and copying during the customary office hours of the office of the state treasurer. Absent an emergency or other unforeseen, exigent circumstances, records may be available at the administrative office of the state treasurer without an appointment from 10:00 a.m. to 2:00 p.m., or with an appointment from 9:00 a.m. to 4:00 p.m., Monday through Friday, excluding legal holidays. A scheduled appointment is strongly advised to provide time for the identification and retrieval of responsive records prior to your arrival.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-050, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-060 Records index.

WAC 389-06-060

(1) The commission has implemented an indexing system for the identification and location of records required to be indexed by RCW 42.56.070(5) and 34.05.220(2). In addition to the indexing system, the office of the state treasurer maintains and continually updates the commission's website at https://tre.wa.gov/our-office/boards-and-commissions/public-deposit-protection-commission, which includes public depositary protection commission laws, reports, and other commission documents.

(2) The following records, if any, shall be indexed as follows:

(a) Orders, including final orders and adjudicative orders, as defined in RCW 34.05.010 will be indexed chronologically and include the issuance number and topic.

(b) Interpretive or policy statements as defined in RCW 34.05.010 will be indexed chronologically and include the issuance number and topic.

(c) Commission meeting notices, materials, and minutes will be indexed chronologically.

(d) Resolutions issued by the commission will be indexed by issuance number.

(e) Reports will be indexed chronologically.

(3) Location and availability. The index is posted on the office of the state treasurer's website at tre.wa.gov/public-records-index. The index is otherwise available to all persons under the same rules and on the same conditions as are applied to public records available for inspection.

(4) Revising and updating the records index. The office of the state treasurer will review the committee's index at least annually to ensure that it is current and complete.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-060, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-070 Requests for public records.

WAC 389-06-070

(1) This procedure for requesting public records ensures the office of the state treasurer can provide the fullest assistance to requestors; prevent unreasonable invasions of privacy; protect public records from damage or disorganization; and prevent excessive interference with essential functions of the office or the commission.

(2) Submitting a request.

(a) Persons seeking public records of the commission are strongly encouraged to, before submitting a records request, first review the following websites, where many Washington state records are free for viewing and downloading at any time. If any of the web addresses below become inoperable, record seekers may contact the office of the state treasurer to learn any replacement addresses or about similar resources:

(i) Https://tre.wa.gov/public-records-index provides a list of records available on the office website, including data and information related to the state's investments and debt.

(ii) Https://tre.wa.gov/our-office/boards-and-commissions/public-deposit-protection-commission provides access to recent commission meeting documents and resolutions.

(iii) Https://data.wa.gov provides access to multiple datasets maintained by Washington agencies.

(b) Requests for commission records under the provisions of the Public Records Act may be submitted to the office of the state treasurer in one of the following ways:

(i) Online:https://tre.wa.gov/public-records-requests. Requestors are strongly encouraged to submit requests through the office of the state treasurer's secure online Public Records Act portal, which allows requestors to also track the status of their request and easily receive documents of any type or size.

(ii) Email: publicdisclosure@tre.wa.gov

(iii) U.S. mail or delivery:

Public Deposit Protection Commission

c/o Washington State Treasurer

Attn: Public Records Officer

416 Sid Snyder Avenue, S.W.

P.O. Box 40200

Olympia, WA 98504-0200

(iv) In person. A request may be made to staff at the administrative office of the state treasurer during customary office hours. A printed form will be provided to requestors submitting oral requests in person. The completed form will be directed to the public records officer to be processed as described in this chapter.

(c) The request must include the following information:

(i) Name of requestor;

(ii) Address of requestor;

(iii) Direct contact information, including telephone number and email address, to allow for communication if clarification is required, and for notification when records are available for viewing or retrieval; and

(iv) A clear description identifying the public records requested, including dates of the records or transactions, if appropriate.

(d) Communications seeking commission records, but which are sent or provided to unauthorized locations, addresses, or staff may not be accepted as or processed as Public Records Act requests. The office of the state treasurer may process such communications as constituent correspondence or general requests for information, as appropriate. If seeking commission records, requestors are strongly encouraged to submit their request to the public records officer as directed in (b) and (c) of this subsection.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-070, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-080 Processing public records requests.

WAC 389-06-080

(1) Upon receipt of a public records request, it will be recorded in the office of the state treasurer's public records tracking system and will be assigned a tracking number.

(2) The public records officer will evaluate the request to determine the availability and potential volume of requested records.

(3) Acknowledging receipt of request. Following the initial evaluation of the request under subsection (2) of this section, and within five business days of receipt of the request, the public records officer will do one or more of the following:

(a) Make the records available for inspection or retrieval, including:

(i) If copies are available via the internet, provide an internet address to specific records requested;

(ii) If copies will be provided without a fee or deposit for the copies, send the copies to the requestor;

(b) Acknowledge receipt of the request and provide a reasonable estimate of when records or an installment of records will be available, in which the estimate may be revised from time to time;

(c) Acknowledge receipt of the request and ask the requestor to provide clarification for a request that is unclear or unduly burdensome, providing, to the greatest extent practicable, the office of the state treasurer's interpretation of the request and a reasonable estimate of time to respond based on such interpretation:

(i) Clarification may be requested and provided by telephone and memorialized in writing;

(ii) If the requestor fails to respond to a request for clarification and the office of the state treasurer cannot reasonably interpret the request to be sufficient pursuant to chapter 42.56 RCW, the office of the state treasurer need not respond to it; or

(d) Deny the request.

(4) Providing records in installments. The public records officer may provide copies, or access for inspection and copying, in installments. If, within 30 days, the requestor fails to inspect or take delivery of the entire set of records or any one or more installments, the request will be abandoned as described in subsection (5) of this section.

(5) Closing withdrawn or abandoned request. When a requestor either withdraws their request or fails to amend or clarify an unclear request, take delivery of or inspect the records, pay the deposit, pay the required fees for an installment, or make final payment for the requested copies, the public records officer may deem the request abandoned, administratively close the request, and notify the requestor of such closure.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-080, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-090 Copying fees—Payments.

WAC 389-06-090

(1) There is no fee to inspect public records. The commission may impose a charge for providing a copy of a public record.

(2) The commission does not calculate the actual costs for copying records because doing so would be unduly burdensome for the following reasons:

(a) The commission does not have the resources to conduct a study to determine all its actual copying costs;

(b) To conduct such a study would interfere with other essential commission and office of the state treasurer functions; and

(c) Through the 2017 legislative process, the public and requestors have commented on and been informed of authorized fees and costs, including for electronic records, provided in RCW 42.56.120 (2)(b) and (c), (3), and (4).

(3) The commission, through the office of the state treasurer may:

(a) Charge for copies of records pursuant to RCW 42.56.120 (2)(b) and (c);

(b) Charge for customized services pursuant to RCW 42.56.120(3);

(c) Charge other copy fees authorized by statutes outside of chapter 42.56 RCW pursuant to RCW 42.56.130; or

(d) Enter into an alternative fee agreement with the requestor under RCW 42.56.120(4).

(4) The charges for copying methods used by the commission are summarized in the fee schedule available on the office of the state treasurer's website at https://tre.wa.gov.

(5) Before producing public records, the public records officer may require the requestor to pay:

(a) The entire cost in advance of receiving records;

(b) An advance deposit of 10 percent of the estimated fees; or

(c) The payment of the costs of providing an installment before providing that installment.

(6) The public records officer will notify the requestor if fees will be charged and when payment is required.

(7) The commission will deem abandoned and administratively close a request as described in WAC 389-06-080(5) when a requestor fails by the payment date to pay in the manner prescribed.

(8) Payment should be made by check or money order to the office of the state treasurer. The office of the state treasurer prefers not to receive cash, and it is within the public records officer's discretion to determine the denomination of bills and coins that will be accepted.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-090, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-100 Exemptions.

WAC 389-06-100

(1) Records exempt from disclosure. Some records are exempt from disclosure, in whole or in part. If the office of the state treasurer believes that a record is exempt from disclosure and should be withheld, the public records officer will state the specific exemption and provide a brief written explanation of why the record, or a portion of the record, is being withheld. If only a portion of a record is exempt from disclosure, but the remainder is not exempt, the public records officer will redact the exempt portions, provide the nonexempt portions, and indicate to the requestor why portions of the record are being redacted.

(2) Protecting the rights of others. If records to be produced in response to a request contain information that may affect the rights of others, the public records officer may, prior to providing the records, give notice to such others whose rights may be affected by the disclosure. The notice to potentially affected persons may include a copy of the request.

(3) List of individuals. The commission is prohibited by statute from disclosing a list of individuals for commercial purposes. The office of the state treasurer will require a commercial purpose declaration prior to disclosing a list of individuals. A copy of the commercial purpose declaration may be provided to individuals potentially affected by release of the record if such individuals are notified as described in subsection (2) of this section.

(a) For the purpose of this subsection, individuals means natural persons; provided, however, that a list that includes natural persons and entities or organizations is considered a list of individuals.

(b) For the purpose of this subsection, commercial purposes means activities of a requestor or their affiliates which are reasonably anticipated to result in the generation of revenue or be done for financial benefit.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-100, filed 7/2/26, effective 8/2/26.

Wash. Admin. Code § 389-06-110 Review of denials of public records requests.

WAC 389-06-110

(1) Requestors are encouraged to communicate with the public records officer regarding denials of public records requests.

(2) Petition for internal administrative review. Any person who objects to the denial or a partial denial of a request for a public record may petition for prompt review of such decision by submitting a written request for review to the public records officer at any of the methods of contact provided in this chapter. The written petition must specifically include the office-assigned request number and a copy of any written statement by the public records officer or other staff member which constituted or accompanied the denial.

(3) Consideration of petition for review. Immediately after receiving a written petition for review of a decision denying a public record, the public records officer or other staff member shall refer it to the treasurer, or the treasurer's designee, who shall consider the matter and either affirm or reverse such denial, or call a special meeting of the commission as soon as practicable to review the denial. In any case, the petition shall be returned with a final decision, within two business days following the receipt of the petition for review, or within such other time as the treasurer or designee and the requestor mutually agree.

(4) Review by the office of the attorney general. Pursuant to RCW 42.56.530, if the commission denies a requestor access to a public record because it claims the record is exempt in whole or in part from disclosure, the requestor may request the office of the attorney general to review the matter. The attorney general has adopted a protocol for such requests in WAC 44-06-160.

(5) Judicial review. Requestors may obtain court review of denials of public records requests pursuant to RCW 42.56.550.

History

• Statutory Authority: RCW 43.33.030, 43.33.040, 39.58.030, 39.58.040, 42.56.040, 42.56.070, and 42.56.100. WSR 26-15-004, s 389-06-110, filed 7/2/26, effective 8/2/26.

Chapter 389-12 Practice and procedure—Public depositaries.

Wash. Admin. Code § 389-12-010 Promulgation.

The public deposit protection commission, hereinafter referred to as the "commission," after due and proper notice, and pursuant to the provisions of chapter 193, Laws of 1969 1st ex. sess., as last amended by chapter 2, Laws of 2016 1st sp. sess., hereinafter referred to as the "act," hereby adopts and promulgates the following rules and regulations.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-010, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-010, filed 7/23/09, effective 8/23/09. Statutory Authority: RCW 39.58.040. WSR 86-14-005 (Order 86-I, Resolution No. 86-003), § 389-12-010, filed 6/19/86
• WSR 84-21-036 (Order 84-II, Resolution No. 84-004), § 389-12-010, filed 10/11/84
• WSR 84-03-037 (Order 84-01), § 389-12-010, filed 1/13/84
• Order 77-XIII, § 389-12-010, filed 9/27/77
• Order II, § 389-12-010, filed 6/13/73
• Order 1, § 389-12-010, filed 2/9/70.

Wash. Admin. Code § 389-12-020 Definitions.

Unless the context requires otherwise:

"Alien bank" for the purposes of these rules means a financial institution organized under the laws of a foreign country and having its principal place of business in that country, the majority of the beneficial ownership and control of which is vested in citizens of countries other than the United States of America.

"Commission report" means a formal accounting rendered by all public depositaries to the commission, which details pertinent information of each public depositary in a format supplied by the commission.

"Commission report date" means the last day of each calendar quarter.

"Commission report due date" means the commission report is due in the office of the commission no later than one business day after the date a public depositary's financial report is due to its federal regulatory authority.

"Date of loss" means the date on which a loss shall be deemed to have occurred within the meaning of the act, and shall be the first to happen of the following:

• The date of the taking of possession of the financial institution by a supervisory agency;

• The date of the appointment of the receiver or conservator for a financial institution;

• The date of the commencement of a voluntary liquidation proceeding for a financial institution;

• The date of an order issued by a regulatory authority or a court of competent jurisdiction restraining a financial institution from making payments on deposit liabilities; or

• The date on which the commission declares that a financial institution no longer has the ability to repay public deposits in full.

"Depositary pledge agreement" means the same as defined in RCW 39.58.010, on a form supplied by the commission, wherein a financial institution, in compliance with the act and as a condition precedent to becoming or continuing to be a public depositary, transfers and delivers securities which are eligible collateral to a trustee approved by the commission, which agrees to safekeep such securities for the primary benefit of the commission under the terms and conditions of the agreement and for the purposes set forth by the act and the regulations of the commission. Such agreement shall be executed on behalf of the commission by the chairman. The agreement shall be approved by the board of directors or loan committee of the financial institution. Copies of the meeting minutes which reflect the approval are to be provided to the commission.

"Financial report" means the consolidated reports of condition and income required by the Federal Financial Institutions Examination Council.

"Monthly report" means a report prepared by all public depositaries to the commission, which details insured and uninsured public deposits and other pertinent information of each public depositary in a format supplied by the commission.

"Monthly report date" means the last day of each calendar month.

"Monthly report due date" means the monthly report is due in the office of the commission no later than eight business days after the monthly report date or other date as set by the commission.

"Net worth" of a public depositary means the same as defined in RCW 39.58.010, except that net worth for public depositaries with facilities outside Washington state may be adjusted by the commission to reflect the public depositaries' proportional net worth position in Washington state.

"Out-of-state bank" for the purposes of these rules means a financial institution located outside the state of Washington.

"Segregation of collateral" means the transfer and delivery of eligible securities by a public depositary to a trustee pursuant to a depositary pledge agreement or delivery of a letter of credit to the commission.

"Uninsured public deposits" means public deposits not backed by the full faith and credit of the United States government.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-020, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-020, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-020, filed 10/5/99, effective 11/5/99. Statutory Authority: RCW 39.58.040. WSR 86-14-005 (Order 86-I, Resolution No. 86-003), § 389-12-020, filed 6/19/86
• WSR 84-21-036 (Order 84-II, Resolution No. 84-004), § 389-12-020, filed 10/11/84
• WSR 84-03-037 (Order 84-01), § 389-12-020, filed 1/13/84
• WSR 78-12-075 (Order 78-XIV, Resolution No. 78-XIV), § 389-12-020, filed 12/5/78
• Order 77-XIII, § 389-12-020, filed 9/27/77
• Order II, § 389-12-020, filed 6/13/73
• Order 1, § 389-12-020, filed 2/9/70.

Wash. Admin. Code § 389-12-030 New public depositaries.

Any financial institution in the state of Washington eligible under the act, in order to become a public depositary, must be approved by the commission and segregate collateral in the manner as set forth in chapter 39.58 RCW and these rules prior to the receipt of public deposits. Until such time as public depositaries have submitted four consecutive commission reports to the commission as required by RCW 39.58.100, they shall at all times be required to pledge and segregate eligible collateral, valued in an amount equal to not less than its maximum liability or such other sum or measure established by the commission by rule or resolution.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-030, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-030, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-030, filed 10/5/99, effective 11/5/99. Statutory Authority: RCW 39.58.040. WSR 84-21-036 (Order 84-II, Resolution No. 84-004), § 389-12-030, filed 10/11/84
• WSR 84-03-037 (Order 84-01), § 389-12-030, filed 1/13/84
• Order 77-XIII, § 389-12-030, filed 9/27/77
• Order II, § 389-12-030, filed 6/13/73
• Order 1, § 389-12-030, filed 2/9/70.

Wash. Admin. Code § 389-12-035 Withdrawing public depositaries.

No public depositary shall be released from its duties and liabilities until such financial institution has reported four accurate, consecutive commission reports indicating a zero balance of public funds on deposit. At such time, upon request by a public depositary, the commission shall terminate a financial institution's status as a public depositary.

History

• Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-035, filed 7/23/09, effective 8/23/09.

Wash. Admin. Code § 389-12-040 Computation and report of maximum liability.

On each commission report date each public depositary shall calculate its maximum liability in a format supplied by the commission. The commission report shall, in addition to other information required by the commission in its discretion, include the amount of insured and uninsured public deposits of Washington state and its political subdivisions for the most recent commission report date, the uninsured public deposits as shown on the four most recent commission reports (i.e., current report and three immediately preceding reports), the average of uninsured public deposits for the four most recent commission report dates, and the public depositary's maximum liability as defined in chapter 39.58 RCW.

The commission report shall be received in the office of the commission by the commission report due date, and shall also include schedules, as determined by the commission, from the public depositary's most recent financial report to its federal regulatory authority. Any public depositary failing to submit its commission report by the commission report due date shall be subject to appropriate sanction as provided in chapter 39.58 RCW and WAC 389-12-100.

At the end of each calendar quarter, the commission shall provide each public depositary the amount constituting thirty percent of total public funds on deposit in Washington state for the preceding quarter. Public depositaries shall use this amount to monitor their total public funds on deposit for the ensuing quarter, unless notified of a revised amount by the commission.

Upon request from a public depositary the commission may, for good cause shown, extend the commission report due date for commission reports for a period not to exceed five days.

If the maximum liability has increased from the previous commission report or if aggregate public deposits exceed the limitations prescribed in RCW 39.58.135, the public depositary shall immediately increase its collateral and the commission shall be so notified.

Each public depositary shall provide to the commission a copy of any changes, amendments, or alterations to the public depositary's financial report as submitted to its federal regulatory authority which relate to public funds on deposit and net worth.

A monthly report of insured and uninsured public deposits, and other pertinent information shall, in a format supplied by the commission, be submitted by each public depositary to the commission no later than the monthly report date. If applicable, adjustments to the public depositaries' last reported net worth and/or additional collateral being pledged shall be listed on the monthly report. The monthly report shall be submitted to the commission every month. Any public depositary failing to submit its monthly report by the monthly report due date shall be subject to appropriate sanction as provided in chapter 39.58 RCW and WAC 389-12-100.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-040, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-040, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-040, filed 10/5/99, effective 11/5/99. Statutory Authority: RCW 39.58.040. WSR 84-21-036 (Order 84-II, Resolution No. 84-004), § 389-12-040, filed 10/11/84
• WSR 84-03-037 (Order 84-01), § 389-12-040, filed 1/13/84
• Order 77-XIII, § 389-12-040, filed 9/27/77
• Order II, § 389-12-040, filed 6/13/73
• Order 1, § 389-12-040, filed 2/9/70.

Wash. Admin. Code § 389-12-045 Maximum liability established by resolution.

Pursuant to RCW 39.58.010, the commission may from time to time set by resolution such other sum or measure to determine the maximum liability of a public depositary. In setting such other sum or measure, the commission shall consider factors including, but not limited to, the overall market conditions for financial institutions, the extent to which public deposit protections might be lessened, and the effects such change may have on other public depositaries.

History

• Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-045, filed 7/23/09, effective 8/23/09.

Wash. Admin. Code § 389-12-050 Valuation.

Securities pledged as collateral by a public depositary will be valued at market value. Letters of credit pledged as collateral by a public depositary will be valued at the maximum amount available to be drawn.

Value shall be computed as of the date of segregation or the last preceding commission report date, whichever is later. When the commission report is submitted, each public depositary shall certify, in a format supplied by the commission, a current listing of collateral pledged and their current value as of the commission report date.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-050, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-050, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-050, filed 10/5/99, effective 11/5/99. Statutory Authority: RCW 39.58.040. WSR 84-21-036 (Order 84-II, Resolution No. 84-004), § 389-12-050, filed 10/11/84
• WSR 84-03-037 (Order 84-01), § 389-12-050, filed 1/13/84
• Order 77-XIII, § 389-12-050, filed 9/27/77
• Order II, § 389-12-050, filed 6/13/73
• Order 1, § 389-12-050, filed 2/9/70.

Wash. Admin. Code § 389-12-060 Deposit or withdrawal of collateral.

A public depositary must submit a request to the commission to reduce the amount of collateral pledged. Except for the exchange or substitution of securities having an equal or greater market value, the trustee shall not permit the withdrawal of any security without advance approval of the commission.

The trustee, under a depositary pledge agreement, shall inform the commission whenever securities are delivered to or released by the trustee by providing to the commission, within twenty-four hours following such deposit or withdrawal, a copy of the transaction receipt.

When a public depositary pledges eligible securities whose payments include periodic principal reduction, the trustee shall advise the commission, on no less than a monthly basis, of the amounts of such principal payments as well as the new total value which result from the principal payments.

No costs, fees and expenses incidental to the functioning of the depositary pledge agreement shall be a charge against the commission or its interest in the securities pledged.

Each public depositary shall at all times maintain eligible collateral segregated and pledged having a value at least equal to its maximum liability as defined in the act or such other sum or measure set by the commission and under these rules and regulations. Compliance with the foregoing requirement shall be the public depositary's responsibility regardless of the frequency and form of reports required by the commission.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-060, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-060, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-060, filed 10/5/99, effective 11/5/99
• Order 77-XIII, § 389-12-060, filed 9/27/77
• Order II, § 389-12-060, filed 6/13/73
• Order 1, § 389-12-060, filed 2/9/70.

Wash. Admin. Code § 389-12-065 Aggregate deposit limitations.

(1) Whenever the public funds on deposit in a public depositary exceed the limits set forth in RCW 39.58.135, such public depositary shall immediately:

(a) Notify the commission; and

(b) Pledge additional collateral, if necessary, to provide one hundred percent collateralization of such excess deposits.

(2) When a public depositary's net worth position is reduced, such public depositary shall determine if any treasurer's or state treasurer's funds on deposit exceed the revised net worth. If any such excess deposits exist, the public depositary shall immediately notify the commission and provide the commission with a detailed accounting of deposits. The public depositary shall also advise the commission of its intent to:

(a) Provide one hundred percent collateralization of the excess deposits; or

(b) Allow the treasurer to withdraw such deposits in accordance with RCW 39.58.130.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-065, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-065, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-065, filed 10/5/99, effective 11/5/99. Statutory Authority: RCW 39.58.040. WSR 84-21-036 (Order 84-II, Resolution No. 84-004), § 389-12-065, filed 10/11/84.

Wash. Admin. Code § 389-12-071 Minimum standards for the financial condition of public depositaries.

Notwithstanding any other provisions of chapters 39.58 RCW and 389-12 WAC, a public depositary shall be classified into capital categories as provided under regulations implementing section 38 of the Federal Deposit Insurance Act (FDIA) issued by the federal regulatory authority for that public depositary. If a public depositary is categorized as undercapitalized for purposes of section 38 of the FDIA, the public depositary shall pledge collateral, valued in a total amount at least equal to one hundred percent of its uninsured public deposits, or take other actions as determined by the commission; however, the commission may, at any time, in its discretion, require a public depositary to pledge additional collateral after consultation with the appropriate regulatory authorities.

The collateral pledged under this section shall not be less than the maximum liability as required in RCW 39.58.010, but may include collateral required by RCW 39.58.130, 39.58.135, and WAC 389-12-065.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-071, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-071, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-071, filed 10/5/99, effective 11/5/99. Statutory Authority: RCW 39.58.040. WSR 86-14-005 (Order 86-I, Resolution No. 86-003), § 389-12-071, filed 6/19/86.

Wash. Admin. Code § 389-12-075 Collateral level to be maintained.

Whenever a public depositary must pledge collateral in accordance with RCW 39.58.130, 39.58.135, WAC 389-12-065, and 389-12-071, the public depositary must monitor its uninsured public deposits on a daily basis and maintain collateral valued accordingly.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-075, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-075, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-075, filed 10/5/99, effective 11/5/99. Statutory Authority: RCW 39.58.040. WSR 86-14-005 (Order 86-I, Resolution No. 86-003), § 389-12-075, filed 6/19/86.

Wash. Admin. Code § 389-12-080 Maximum deposit limitation.

In determining the maximum deposit limitation of any public depositary, a treasurer or state treasurer, unless advised to the contrary by the commission, may assume that each public depositary's net worth has remained unchanged from that stated in the most recently rendered commission report.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-080, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-080, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-080, filed 10/5/99, effective 11/5/99. Statutory Authority: RCW 39.58.040. WSR 84-21-036 (Order 84-II, Resolution No. 84-004), § 389-12-080, filed 10/11/84
• WSR 84-03-037 (Order 84-01), § 389-12-080, filed 1/13/84
• Order 77-XIII, § 389-12-080, filed 9/27/77
• Order 1, § 389-12-080, filed 2/9/70.

Wash. Admin. Code § 389-12-090 Additional reports, inspections, audits.

The commission may from time to time require such additional reports as will facilitate the performance of its functions. All public depositaries are required to submit to such inspections and/or audits of their public deposits and/or eligible collateral as the commission may from time to time require. Any public depositary failing to respond timely to a request from the commission shall be subject to appropriate sanction as provided in chapter 39.58 RCW and WAC 389-12-100.

History

• Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-090, filed 7/23/09, effective 8/23/09
• Order 77-XIII, § 389-12-090, filed 9/27/77
• Order 1, § 389-12-090, filed 2/9/70.

Wash. Admin. Code § 389-12-100 Violations—Sanction.

If a public depositary fails to comply with any of these rules, or of any of the provisions of the act, or any policies of the commission, the commission may at its option deny or revoke the authority of such public depositary to act as such, or otherwise suspend such public depositary from receiving or holding public deposits until such time as the public depositary complies with the commission's rules and policies.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-100, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-100, filed 7/23/09, effective 8/23/09. Statutory Authority: RCW 39.58.040. WSR 84-03-037 (Order 84-01), § 389-12-100, filed 1/13/84
• Order 1, § 389-12-100, filed 2/9/70.

Wash. Admin. Code § 389-12-120 Administration.

The commission shall be administered through the office of the Washington State Treasurer, Olympia, Washington.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-120, filed 8/9/16, effective 9/9/16
• Order 1, § 389-12-120, filed 2/9/70.

Wash. Admin. Code § 389-12-130 Financial institution mergers.

Within thirty calendar days of any merger, take over, or acquisition of a public depositary, the acquiring financial institution must: (1) Be a public depositary, or (2) become a public depositary as provided for in WAC 389-12-030, or (3) notify the commission of its intent not to become a public depositary. A financial institution electing not to become a public depositary must work with the commission, treasurers, and the state treasurer to orderly discharge public deposits.

The maximum liability of a public depositary under chapter 39.58 RCW shall not be altered or diminished by any merger, take over, or acquisition. Such liability shall be assumed by agreement or operation of law by the successor entity or resulting financial institution and no pledged collateral shall be released by the commission or the trustee until such assumed liability is extinguished or evidenced through the segregation of collateral by the successor entity or resulting financial institution.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-130, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-130, filed 7/23/09, effective 8/23/09. Statutory Authority: RCW 39.58.040. WSR 84-03-037 (Order 84-01), § 389-12-130, filed 1/13/84
• Order II, § 389-12-130, filed 6/13/73.

Wash. Admin. Code § 389-12-140 Demand deposit account with financial institution located outside the state of Washington.

A treasurer or state treasurer may, as provided in chapter 39.58 RCW, with the approval of the commission, establish a demand deposit account with an out-of-state bank or an alien bank. Prior to establishing such account, a treasurer or state treasurer shall submit, in writing, for review by the commission, the following information: (1) Detailed information setting forth the justification for such account, projected cash flows, and other benefits which will accrue to the public entity through the establishment of such account; (2) period of time such account will be in use; (3) reasons such account cannot be established with a public depositary; (4) name and location of financial institution or alien bank and name and telephone number of contact person at financial institution or alien bank; (5) extent of deposit insurance provided by financial institution or alien bank; (6) most recent fiscal year end and quarterly financial report, if any, provided to regulatory agency and/or shareholders by financial institution or alien bank; (7) proposed method of ensuring safety of deposits if not fully covered by deposit insurance, and (8) such other information as the commission reasonably may require.

The account shall not be established until it has been authorized by a resolution of the commission or action authorized by the chair, setting forth the terms and conditions for such account. A copy of such resolution will be forwarded to the public entity and the state auditor.

Accounts authorized under this section are not considered to be protected against loss by the Public Deposit Protection Act.

History

• Statutory Authority: RCW 39.58.040. WSR 16-17-040, § 389-12-140, filed 8/9/16, effective 9/9/16. Statutory Authority: Chapter 39.58 RCW and RCW 39.58.040. WSR 09-16-010, § 389-12-140, filed 7/23/09, effective 8/23/09
• WSR 99-20-082, § 389-12-140, filed 10/5/99, effective 11/5/99. Statutory Authority: RCW 39.58.040. WSR 86-14-005 (Order 86-I, Resolution No. 86-003), § 389-12-140, filed 6/19/86.