Washington Administrative Code Title 389 - State Treasurer's Office (Public Deposit Protection Commission)
Washington Administrative Code (WAC) Title 389 – State Treasurer's Office (Public Deposit Protection Commission) – contains rules adopted by the Washington State Treasurer and the Public Deposit Protection Commission (PDPC). This title governs the management and protection of public funds deposited in financial institutions.
Overview of WAC Title 389:
Agency:
State Treasurer’s Office
Operates the Public Deposit Protection Commission (PDPC)
Primary Function:
Ensures the safety of public funds deposited in qualified public depositaries (banks, credit unions, etc.)
Regulates the collateralization requirements and reporting standards to protect public deposits from bank failure.
Key Areas Covered:
Definitions and Scope
Defines terms such as public deposit, depositary, collateral, etc.
Explains which institutions and funds fall under PDPC rules.
Qualification of Public Depositaries
Requirements for financial institutions to become qualified public depositaries.
Filing procedures and ongoing responsibilities.
Collateral Requirements
Specifies the type and amount of collateral financial institutions must pledge.
Risk-based collateral rules (e.g., percentages based on financial institution ratings).
Reporting and Monitoring
Monthly or quarterly reporting requirements for depositaries.
Procedures for verifying balances and collateral sufficiency.
Enforcement and Compliance
Penalties for non-compliance.
Remedial actions the PDPC can take against depositaries that pose a risk to public funds.
Administrative Rules of the PDPC
Governance and procedural rules for the Public Deposit Protection Commission itself.
Includes meetings, decisions, and emergency actions.
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