8002 ACCOUNTS OUTSIDE OF THE CENTRALIZED STATE TREASURY SYSTEM
(REVISED 12/02)
Requests for approval of bank, savings and loan association, or credit union accounts to be maintained outside the centralized State Treasury System (CTS) will be sent to the Department of Finance, Fiscal Systems and Consulting Unit. Please refer to SAM Section 19462 for bank accounts or Section 19463 for savings and loan association and credit union accounts. All requests shall include the following information:
- Justification for the need to open an account outside the CTS.
- The name and location of the proposed bank, savings and loan association, or credit union.
- The legal name of the department and the official designation of the account.
- Whether the bank or savings and loan association is insured by the Federal Deposit Insurance Corporation (FDIC). For credit unions, whether it is insured by the National Credit Union Administration (NCUA).
- The amount, source, and purpose of the funds to be deposited, type of deposit (time deposit, savings account, etc.), length of deposit, and interest rate to be received.
- The provisions for the withdrawal of funds.
- For Zero Balance Accounts (ZBA) that are swept into the CTS, indicate whether the ZBA is new, or whether it is being changed from one depository bank to another.
The Fiscal Systems and Consulting Unit will notify the State Controller, Division of Accounting and Reporting, and the STO in writing of each new account approved.
Agencies will obtain signature cards from banks, savings and loan associations, and credit unions. Department of Finance approval of signature cards is not required. It is the agency's responsibility to ensure that adequate safeguards are taken to prevent improper or unauthorized use of facsimile signatures. (See SAM Sections 8080-8082.)
Agencies shall ensure that deposited funds are collateralized in accordance with the following Government Code Sections:
Bank Accounts
Section 16520—Security is not required for that portion of deposited funds insured under any law of the United States.
Section 16521—Requires banks to deposit securities as collateral with the State Treasurer valued at 110 percent of the uninsured portion of the collected funds deposited with the banks.
Section 16522—Specifies the types of securities that banks may deposit as collateral with the State Treasurer.
Savings and Loan Association and Credit Union Accounts
Section 16610—Security is not required for that portion of deposited funds insured under any law of the United States.
Section 16611—Requires savings and loan associations and credit unions to deposit securities as collateral with the State Treasurer valued at least 110 percent of the uninsured portion of the collected funds deposited with the savings and loan associations and credit unions.
Section 16612—Specifies the types of security that savings and loan associations and credit unions may deposit as collateral with the State Treasurer.
