Source: L. 75: Entire article added, p. 399, § 1, effective July 1.

11-47-102. Legislative declaration. (1) The general assembly declares that the purpose of this article is to provide protection of public moneys on deposit in state-chartered and federally chartered savings and loan associations in this state above and beyond the protection provided by the federal savings and loan insurance corporation and to insure prompt payment of deposit liabilities to governmental units in the event of default or insolvency of any such association.

            (2) The general assembly further declares that the inclusion of self-insurance pools formed by governmental units within the scope of the provisions of this article is to clarify that such self-insurance pools have been and shall continue to be entitled to protection as provided by the provisions of this article.

           Source: L. 75: Entire article added, p. 399, § 1, effective July 1. L. 88: Entire section amended, p. 428, § 6, effective April 20.

11-47-103. Definitions. As used in this article, unless the context otherwise requires:

            (1) "Affected governmental unit" means any governmental unit whose deposits of public moneys are affected by an event of default.

            (2) "Capital funds" means, with respect to any eligible public depository, the aggregate sum of its capital stock, surplus, and undivided profits and of all reserves required by any law or regulation, together with the amount of any debt subordinated to deposit liabilities when such debt has been allowed to be included in its stated capital position by the applicable regulatory authority.

            (3) "Commissioner" means the state commissioner of financial services.

            (4) "Defaulting depository" means an eligible public depository to which an event of default has occurred.

            (5) "Eligible collateral" means:

            (a) Obligations of the United States or of any agency thereof;

            (b) Obligations wholly or partially guaranteed or insured as to payment of principal by the United States or any agency thereof;

            (c) Obligations of the state of Colorado, including anticipation warrants, and general obligations of any governmental unit of this state, including obligations the interest and principal of which are secured by deposit in escrow of an amount of obligations of the United States or any agency thereof sufficient to secure such payment;

            (d) Obligations evidenced by notes secured by first lien mortgages or deeds of trust on real property, whether or not situate in this state, if such obligations are not for construction or land acquisition and development and if such obligations shall not exceed one hundred percent of the value of all eligible collateral on pledge, which obligations shall not be in default in any respect and are wholly owned by the eligible depository;

            (e) Revenue bonds, except industrial development revenue bonds, issued by the state of Colorado or any agency thereof, or by any county, city and county, municipality, school district, special district, or other authority within this state, as well as special improvement district bonds issued by any such political subdivision or authority;

            (f) Mortgage-backed securities issued by the federal home loan mortgage corporation, the federal national mortgage association, or the government national mortgage association and such other mortgage-backed securities as are approved by the commissioner;

            (g) Such liquid assets, as such term is defined in the federal regulations governing members of a federal home loan bank, as are approved by the commissioner;

            (h) Irrevocable and unconditional standby letters of credit issued by a federal home loan bank if:

            (I) The letter of credit is in the standard format approved by the Colorado division of financial services;

            (II) The Colorado division of financial services is designated as the beneficiary of the letter of credit; and

            (III) Securities issued by the federal home loan bank remain triple A-rated by one or more nationally recognized organizations which regularly rate such obligations.

            (6) "Eligible public depository" means any state-chartered savings and loan association or any federally chartered savings and loan association having an office in this state which is authorized by the laws of the United States to accept deposit accounts, which deposits are insured by the federal deposit insurance corporation or its successor, and which depository has been designated as an eligible public depository by the commissioner.

            (7) "Event of default" means the issuance of an order by a supervisory authority or a receiver restraining an eligible public depository from making payments of its deposit liabilities.

            (8) "Governmental unit" means the state of Colorado, every municipality, city and county, county, school district, special district, and authority located in this state, every public body corporate created or established under the constitution or any law of this state, and every board, commission, department, institution, agency of, and every entity created by intergovernmental agreement among, any of the foregoing which collects, receives, or has custody of or control over public moneys.

            (8.5) (a) "Market value" means, for eligible collateral consisting of obligations wholly or partially guaranteed or insured as to payment of principal by the United States or any agency thereof, or other obligations evidenced by notes secured by first lien mortgages or deeds of trust, the lower of current market quotation or seventy-five percent of the unpaid principal of the note evidencing the obligation.

            (b) For all other eligible collateral, "market value" means the current market quotation.

            (9) "Maximum liability of an eligible public depository" means, with respect to any event of default, a sum equal to fifty percent of the average daily amount of public deposits, not insured by the federal savings and loan insurance corporation, held by any eligible public depository during the six-month period ending on the valuation date next preceding the occurrence of such event of default.

            (10) "Net deposit liability" means, with respect to a defaulting depository, the amount of its deposit liability to a governmental unit after deduction of any applicable federal savings and loan insurance corporation insurance with respect thereto.

            (11) "Public deposits" means and includes all public moneys on deposit in an eligible public depository, whether payable on demand or at a certain time.

            (12) "Public moneys" means all moneys under the control of or in the custody of governmental units.

            (13) "Valuation date" means the last business day of either March or September of each year, as the occasion may require.

           Source: L. 75: Entire article added, p. 399, § 1, effective July 1. L. 76: (9) amended, p. 300, § 22, effective May 20. L. 77: (5)(d) and (5)(e) amended, p. 574, § 1, effective June 10. L. 79: (5)(b) and (5)(d) amended and (8.5) added, p. 1614, § 3, effective June 8. L. 81: (5)(d) amended, p. 620, § 3, effective April 30. L. 83: (8.5)(a) amended, p. 487, § 2, effective May 10. L. 85: (5)(d) and (5)(e) amended and (5)(f) and (5)(g) added, p. 401, § 1, effective May 31. L. 88: (8) amended, p. 429, § 7, effective April 20. L. 89: (3) amended, p. 621, § 14, effective July 1. L. 94: (6) amended, p. 68, § 15, effective July 1. L. 97: (5)(h) added, p. 159, § 1, effective March 28.

11-47-104. Administration - powers of commissioner and financial services board. The provisions of this article shall be administered by the commissioner under the supervision of the financial services board. The financial services board and the commissioner shall have the authority to do all acts necessary and required to carry out the purpose of this article. To this end, the financial services board is empowered to make, amend, and rescind rules and regulations consistent with said provisions and to prescribe a standard form for the statements and reports required to be made or filed by eligible public depositories and to require uniform use of the same. Acts of the commissioner are subject to appeal to the financial services board pursuant to section 11-44-101.8.

           Source: L. 75: Entire article added, p. 401, § 1, effective July 1. L. 93: Entire section amended, p. 1453, § 14, effective June 6.

11-47-105. Acceptance of provisions - designation as eligible public depository. (1) Every state-chartered savings and loan association and every federally chartered savings and loan association having an office in this state which is otherwise eligible to be an eligible public depository and which desires to accept and hold, or to continue to accept and hold, public deposits in an amount in excess of the amount insured by the federal deposit insurance corporation or its successor shall, within ninety days after July 1, 1975, file with the commissioner, on a form provided by him for such purpose, a statement signed and sworn to by an executive officer of such association electing to accept and become subject to the provisions of this article and setting forth the amount of its capital funds and the aggregate amount and nature of all public deposits held by it as of July 1, 1975. Upon the filing of such statement and acceptance, the commissioner shall forthwith designate such savings and loan association as an eligible public depository and shall issue an appropriate certificate evidencing such designation.

            (2) Any state-chartered savings and loan association or any federally chartered savings and loan association having an office in this state which fails to file a statement and acceptance within the period of time provided for in this section but which thereafter desires to become an eligible public depository and any such association hereafter organized to carry on a savings and loan business in this state which desires to become an eligible public depository may, at any time, file with the commissioner a statement signed and sworn to by an executive officer of such association stating the amount of its capital funds as of the date of said statement and declaring that it has elected to accept and become subject to all the provisions of this article, and, upon the filing of said statement and acceptance, the commissioner shall forthwith designate such association as an eligible public depository and shall issue an appropriate certificate evidencing such designation.

           Source: L. 75: Entire article added, p. 401, § 1, effective July 1. L. 94: Entire section amended, p. 68, § 16, effective July 1.

11-47-106. Minimum amount of eligible collateral required to be maintained as security for public deposits. (1) When the commissioner certifies that at least one-fourth of the state-chartered or federally chartered savings and loan associations holding at least one-fourth of the total resources held by all savings and loan associations in the state of Colorado have elected to secure public deposits, as provided in this section and section 11-47-107, and have been designated as eligible public depositories or on and after the date of its designation as an eligible public depository, whichever is later, every eligible public depository shall thereafter maintain, as security for that portion of all public deposits accepted and held by it which is not insured by the federal savings and loan insurance corporation, eligible collateral as defined in section 11-47-103 (5) (a) and (5) (c) having a market value, at all times, equal to at least fifty percent of the average daily amount of the uninsured portion of said deposits accepted and held by it during the six-month period ending on the valuation date next preceding, unless it has elected to pledge eligible collateral as provided in section 11-47-108. Prior to the commissioner's certification as provided in the first sentence of this subsection (1), all eligible public depositories shall secure public deposits as provided in section 11-47-108, and the provisions of section 11-47-114 shall not apply pending such certification.

            (2) In the case of an eligible public depository which held no public deposits during the preceding six-month period in excess of the amounts insured by the federal savings and loan insurance corporation but which accepts and holds such deposits during the ensuing six-month period, said depository shall maintain, as security therefor, eligible collateral as defined in section 11-47-103 (5) (a) and (5) (c) having a market value, at all times, equal to at least fifty percent of the average daily amount of public deposits, not insured by the federal savings and loan insurance corporation, accepted and held by it during said ensuing six-month period, unless it has elected to pledge eligible collateral as provided in section 11-47-108.

            (3) The market value of eligible collateral maintained or pledged shall be determined and calculated in accordance with the rules and regulations prescribed by the financial services board from time to time. The market value of eligible collateral on any valuation date shall be presumed to be its market value to and until the next following valuation date.

           Source: L. 75: Entire article added, p. 401, § 1, effective July 1. L. 93: (3) amended, p. 1453, § 15, effective June 6.

11-47-107. Additional eligible collateral - when required to be maintained. (1) Any eligible public depository which accepts and holds public deposits not insured by the federal savings and loan insurance corporation in an aggregate amount exceeding two hundred percent of its capital funds and which holds such excess amount of public deposits for more than thirty consecutive days shall secure such excess amount with additional eligible collateral having a market value equal to at least one hundred percent of such excess amount and shall maintain such additional collateral for so long as such excess amount continues to exist, unless it has elected to pledge eligible collateral as provided in section 11-47-108.

            (2) The additional collateral required to be maintained under such circumstances shall be in addition to the amount of collateral required to be maintained as provided in section 11-47-106.

           Source: L. 75: Entire article added, p. 402, § 1, effective July 1.

11-47-108. Alternative method of securing public deposits. (1) Except as provided in section 11-47-112 (6) (a), in lieu of maintaining the amount of eligible collateral specified in sections 11-47-106 and 11-47-107, any eligible public depository may, at its option, elect to secure public deposits accepted and held by it by pledging eligible collateral having a market value, at all times, equal to at least one hundred percent of the aggregate of said deposits not insured by the federal savings and loan insurance corporation.

            (2) In such case, the eligible collateral pledged shall be held in the same manner and under the same conditions as specified in section 11-47-109; except that the depository so electing shall be required to furnish each governmental unit whose deposit is so secured with a statement, signed under oath by an executive officer of said depository, certifying to said governmental unit that its deposit is secured in the manner specified in subsection (1) of this section and specifying where the collateral pledged is being held in custody.

           Source: L. 75: Entire article added, p. 402, § 1, effective July 1. L. 87: (1) amended, p. 469, § 2, effective May 1.

11-47-109. Where collateral held - right of substitution - income derived. (1) The eligible collateral required to be maintained as provided in sections 11-47-106 and 11-47-107 or required to be pledged as provided in section 11-47-108 shall be held in escrow by another savings and loan association in Colorado, by a state or national bank in Colorado, or by any federal home loan bank or branch thereof or any federal reserve bank or branch thereof approved by the commissioner, and held in such manner as the financial services board shall prescribe by rule and regulation. All collateral so held shall be clearly identified as being security maintained or pledged for the aggregate amount of public deposits accepted and held on deposit by said eligible public depository.

            (2) Said depository shall have the right at any time to make substitutions of eligible collateral maintained or pledged and shall at all times be entitled to collect and retain all income derived from the same without restriction.

           Source: L. 75: Entire article added, p. 403, § 1, effective July 1. L. 77: (1) amended, p. 574, § 2, effective June 10. L. 86: (1) amended, p. 603, § 1, effective March 10. L. 89: (1) amended, p. 613, § 9, effective April 19. L. 93: (1) amended, p. 1454, § 16, effective June 6.

11-47-110. Subsequent elections upon approval of commissioner. (1) Any eligible public depository maintaining eligible collateral as provided in sections 11-47-106 and 11-47-107 may, upon written approval by the commissioner, elect to change to the alternative method of pledging eligible collateral provided in section 11-47-108, but such change shall not become effective sooner than six months after said approval.

            (2) Any eligible public depository pledging eligible collateral as provided in section 11-47-108 may, upon written approval by the commissioner, revoke its previous election and elect to thereafter maintain eligible collateral as provided in sections 11-47-106 and 11-47-107.

           Source: L. 75: Entire article added, p. 403, § 1, effective July 1.

11-47-111. Reports required - when filed - contents. On a date specified by the commissioner, every eligible public depository shall file a report with the commissioner which has been signed and sworn to by an executive officer of such depository and contains such information as required by the commissioner. The commissioner may require more frequent reports from eligible public depositories.

           Source: L. 75: Entire article added, p. 403, § 1, effective July 1. L. 83: Entire section amended, p. 488, § 3, effective May 10. L. 94: Entire section amended, p. 69, § 17, effective July 1.

11-47-112. Power and authority of financial services board. (1) The commissioner shall have specific power and authority to require any eligible public depository to furnish him, at any time, such information as he may request or demand concerning the amount of public deposits held by it, the portion thereof which is insured by the federal savings and loan insurance corporation, the amount of its capital funds, and the nature, amount, market value, and location of the eligible collateral maintained or pledged by it to secure said deposits.

            (2) If any such depository shall fail or refuse to furnish the information requested or demanded within ten days after the date of the request or demand, the commissioner shall have the authority to forthwith deny it the right to accept and hold any additional public deposits until such time as said information is furnished to him and he has acknowledged receipt thereof, and, at his discretion, he may make public announcement of such denial.

            (3) The commissioner shall have the authority to determine and fix the date upon which any event of default is deemed to have occurred, after taking into account and giving due consideration to any rule, regulation, or lawful order of any supervisory authority as the same may affect the inability or failure of an eligible public depository to repay deposit liabilities.

            (4) The commissioner shall have the authority to require any eligible public depository to substitute new eligible collateral for any of its maintained or pledged collateral which he deems to be ineligible.

            (5) If any depository violates any regulation promulgated by the commissioner pursuant to section 11-47-104 or violates any provision of this article, the commissioner shall have the authority to deny, forthwith, the right of said depository to accept and hold any additional public deposits until such time as the depository complies with the regulations or the provisions of this article. The commissioner, at his discretion, may make public announcement of such denial.

            (6) (a) The financial services board may promulgate regulations to require an eligible public depository to reduce or eliminate its uninsured public deposit liability if said depository's regulatory capital does not comply with the minimum requirement of the federal savings and loan insurance corporation. Notwithstanding any other provision in this article to the contrary, the financial services board also may promulgate regulations to require a depository to pledge eligible collateral having a market value in excess of one hundred percent of the aggregate amount of public deposits not insured by the federal savings and loan insurance corporation, if said depository's regulatory capital does not comply with the minimum requirement of the federal savings and loan insurance corporation. Notwithstanding any other provision in this article to the contrary, the financial services board may promulgate regulations to require an eligible public depository to pledge a minimum amount of eligible collateral.

            (b) Repealed.

           Source: L. 75: Entire article added, p. 403, § 1, effective July 1. L. 85: (4) added, p. 402, § 2, effective May 31. L. 87: (5) and (6) added, p. 469, § 3, effective May 1. L. 89: (6)(a) amended and (6)(b) repealed, pp. 614, 615, § § 10, 13, effective April 19. L. 93: (6) amended, p. 1454, § 17, effective June 6.

11-47-113. Procedure when event of default occurs. (1) When the commissioner has determined that an event of default has occurred with respect to any eligible public depository and has determined and fixed the date of such occurrence, he shall proceed in the following manner:

            (a) He shall forthwith seize and take possession of all eligible collateral, maintained or pledged, belonging to the defaulting depository, wherever held in custody.

            (b) Within twenty days thereafter, he shall ascertain the aggregate amount of public deposits held by the defaulting depository, as disclosed by the records of such depository, and the portion thereof which is insured by the federal savings and loan insurance corporation, and shall notify each affected governmental unit of the amount of its deposit, as so disclosed, and the portion thereof which is so insured, and shall require each affected governmental unit to provide him with a verified statement showing the amount of its deposit, as disclosed by its own records, within thirty days after receipt of such notification.

            (c) Upon receipt of all verified statements from an affected governmental unit, he shall determine and fix the net deposit liability of the defaulting depository to such affected governmental unit. Upon receipt of all such verified statements from all affected governmental units, he shall determine and fix the aggregate net deposit liability of the defaulting depository to all affected governmental units.

            (d) The commissioner shall proceed to liquidate the eligible collateral maintained or pledged by the defaulting depository which he had theretofore seized and may, from time to time, apply the amount realized from such liquidation against the net deposit liability to any governmental unit. The commissioner shall maintain a reserve from such amount realized for the payment of the aggregate net deposit liability to all affected governmental units until payment is made to all affected governmental units.

            (e) In the event the federal savings and loan insurance corporation is appointed and acts as liquidator or receiver of any eligible public depository under state or federal law, those duties specified in this section to be performed by the commissioner may, where the commissioner deems appropriate, be delegated by the commissioner to and performed by the federal savings and loan insurance corporation.

           Source: L. 75: Entire article added, p. 404, § 1, effective July 1. L. 87: (1)(e) amended, p. 469, § 4, effective May 1. L. 89: (1)(b) to (1)(d) amended, p. 614, § 11, effective April 19.

11-47-114. Assessments made - exceptions. (1) With respect to any defaulting depository maintaining eligible collateral as provided in sections 11-47-106 and 11-47-107, the commissioner shall determine the amount of the net deposit liability of the defaulting depository to all affected governmental units remaining after application of the proceeds realized from liquidation of the eligible collateral of the defaulting depository and shall thereupon assess said amount against all other eligible public depositories which held public deposits and which maintained eligible collateral security therefor as provided in sections 11-47-106 and 11-47-107 on the date upon which the event of default was determined to have occurred, in the proportion that the maximum liability of each such eligible public depository on the last preceding valuation date bears to the aggregate maximum liability of all such other eligible public depositories on said last preceding valuation date; but in no event shall the amount assessed against any such other eligible public depository exceed the amount of its own maximum liability on said last preceding valuation date, and this limitation on assessments shall be cumulative over the period in which any savings and loan association qualifies as an eligible public depository under sections 11-47-106 and 11-47-107.

            (2) No assessment shall be made against any eligible public depository which had eligible collateral pledged to secure its public deposits in the manner provided in section 11-47-108 on the date upon which the event of default was determined to have occurred.

           Source: L. 75: Entire article added, p. 404, § 1, effective July 1.

11-47-115. When assessments payable - procedure if not paid. (1) The amount of each assessment made pursuant to section 11-47-114 shall be payable to the commissioner on the fifth day following receipt of notice and demand therefor, sent by certified mail, return receipt requested.

            (2) If any eligible public depository fails or refuses to pay the amount assessed against it, the commissioner has the authority to seize and take possession of so much of the eligible collateral maintained by said depository, wherever held in custody, as he deems necessary to cover said amount, and to liquidate the same, and to apply the amount realized from such liquidation in satisfaction of the amount of the assessment, rendering any excess to said depository; in such event, the commissioner may deny such depository the right to accept and hold any public deposits thereafter and may make public announcement of such denial.

           Source: L. 75: Entire article added, p. 405, § 1, effective July 1.

11-47-116. Disposition of assessments - subrogation of claims - expenses. (1) The commissioner shall distribute the amount of the assessments collected to the affected governmental units in the proportion that the net deposit liability of the defaulting depository to each affected governmental unit bears to its aggregate net deposit liability to all affected governmental units.

            (2) Upon full payment to each affected governmental unit, the commissioner shall be subrogated to all claims of such governmental unit against the defaulting depository and shall share in any distribution of the assets of said depository ratably with other depositors.

            (3) The commissioner is authorized to take such action as he deems necessary and proper for the collection, compromise, or settlement of any claim arising out of an event of default to which he has been subrogated.

            (4) All amounts received by the commissioner in distributions in liquidation of a defaulting depository shall be first paid to affected governmental units to the extent of any unpaid net deposit liability thereto, and any balance thereafter remaining shall be paid to the eligible public depositories against whom assessments were made and collected in proportion to the amount of such assessment.

            (5) Any expenses incurred by the commissioner in enforcing payment of any subrogated claim shall be paid as a liquidating expense of the defaulting depository.

           Source: L. 75: Entire article added, p. 405, § 1, effective July 1.

11-47-117. No impairment of obligations. Nothing contained in this article shall be construed so as to impair the obligation of any contract or agreement made and entered into prior to July 1, 1975.

           Source: L. 75: Entire article added, p. 405, § 1, effective July 1.

11-47-118. Public moneys to be deposited only in eligible public depositories - penalty for violation. (1) On and after January 1, 1976, it shall be unlawful for any public moneys to be deposited in any state-chartered savings and loan association, or in any federally chartered savings and loan association having its principal office in this state, other than one which has been designated by the commissioner as an eligible public depository, unless the entire amount of such deposit is insured by the federal savings and loan insurance corporation.

            (2) Any official of a governmental unit having custody of or control over public moneys who violates the provisions of subsection (1) of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than two hundred dollars nor more than five hundred dollars, which fine shall be mandatory, and, upon any such conviction, the court may adjudge that he be removed from office.

            (3) Notwithstanding any other provision of this section to the contrary, nothing shall be construed to prevent a savings and loan association which is an eligible public depository operating pursuant to the provisions of this article from being or acting as an agent in behalf of any public entity for the purposes of making investments as authorized by part 6 of article 75 of title 24, C.R.S. Any such savings and loan association shall maintain such accounting records as are necessary to readily distinguish between the activities authorized by said part 6 of article 75 of title 24, C.R.S., and the purposes of the public deposit protection requirements imposed upon it as a condition of being an eligible public depository. The financial services board may promulgate such rules and regulations as it deems desirable to ensure that the activities authorized under part 6 of article 75 of title 24, C.R.S., and the protection of public funds pursuant to this article are not commingled.

           Source: L. 75: Entire article added, p. 406, § 1, effective July 1. L. 89: (3) added, p. 615, § 12, effective April 19. L. 93: (3) amended, p. 1454, § 18, effective June 6.

11-47-119. Liability of officials of governmental units. No official of a governmental unit who acted in good faith in selecting, designating, or approving any eligible public depository for the deposit of public moneys in his custody or under his control shall be liable for any loss of public moneys deposited therein by reason of the occurrence of an event of default with respect to such depository.

           Source: L. 75: Entire article added, p. 406, § 1, effective July 1.

11-47-120. Authority to accept deposits - acceptance of insured deposits. Any state-chartered savings and loan association, or any federally chartered savings and loan association having its principal office in this state, which is authorized by the laws of this state or of the United States to accept deposit accounts or savings deposits is authorized to accept and hold, and any governmental unit is authorized to make and maintain in such association, deposits of public moneys as provided in this article. Any such association is authorized to accept and hold, and any governmental unit is authorized to make and maintain therein, deposits of public moneys to the extent that the full amount thereof is insured by the federal savings and loan insurance corporation, even though such association has not elected to be designated as an eligible public depository under the provisions of this article.

Source: L. 75: Entire article added, p. 406, § 1, effective July 1.