THERE WERE NO REVENUE BONDS OUTSTANDING AT JUNE 30, 2012 FOR THIS AGENCY. Completed by: NAME TITLE Appendix F Securing bank deposits the liquidation of collateral in the event of a By Jim Buttry bank failure. I have not attempted to deal with whether a last put together an article for City and Town on • particular deposit is of public funds, eligible the securing of public deposits in 1993. I for collateralization under federal and state thought that I was finished with the matter. In- law. Nonprofit entities associated with or sup- deed, I announced in the article that it was my porting governmental purposes would be ex- song” on the subject. With some trepida- tion, “swan amples of entities that might not qualify. I have been drawn back into the matter, chiefly Any change in existing law or regulations because of changes in state law and the re- quest • can affect the conclusions or opinions ex- of my friend Paul Young, the League’s fi- nance pressed in this article. director, who collaborated on and contributed We are required by IRS Circular 230 to in- greatly to this article. Also, the Gen- eral Assembly • form all readers of this article that any state- made significant changes in the Uni- form ments contained in it are not intended or Commercial Code in 2001. I must acknowledge my written to be used, and cannot be used, by reliance on Hawkland & Rogers UCC Series (Rev anyone for the purpose of avoiding any Art 8). penalties that may be imposed under federal I repeat the disclaimers that I issued in 1993 law. and add one. Here are the disclaimers: Portions of this article repeat portions of the The scope of this article is limited. It deals • 1993 article. (I am confident that there is no risk of with the and of security “perfection” “control” anyone’s remembering the latter.) interests in collateral pledged to secure pub- lic deposits. I have, for example, not at- tempted to deal with the details involved in
THERE WERE NO REVENUE BONDS OUTSTANDING AT JUNE 30, 2012 FOR THIS AGENCY. Completed by: NAME TITLE Appendix F Securing bank deposits By Jim Buttry last put together an article for City and Town on the securing of public deposits in 1993. I thought that I was finished with the matter. In- deed, I announced in the article that it was my “swan song” on the subject. With some trepida- tion, I have been drawn back into the matter, chiefly because of changes in state law and the re- quest of my friend Paul Young, the League’s fi- nance director, who collaborated on and contributed greatly to this article. Also, the Gen- eral Assembly made significant changes in the Uni- form Commercial Code in 2001. I must acknowledge my reliance on Hawkland & Rogers UCC Series (Rev Art 8). I repeat the disclaimers that I issued in 1993 and add one. Here are the disclaimers: • The scope of this article is limited. It deals with the “perfection” and “control” of security interests in collateral pledged to secure pub- lic deposits. I have, for example, not at- tempted to deal with the details involved in the liquidation of collateral in the event of a bank failure. • I have not attempted to deal with whether a particular deposit is of public funds, eligible for collateralization under federal and state law. Nonprofit entities associated with or sup- porting governmental purposes would be ex- amples of entities that might not qualify. • Any change in existing law or regulations can affect the conclusions or opinions ex- pressed in this article. • We are required by IRS Circular 230 to in- form all readers of this article that any state- ments contained in it are not intended or written to be used, and cannot be used, by anyone for the purpose of avoiding any penalties that may be imposed under federal law. Portions of this article repeat portions of the 1993 article. (I am confident that there is no risk of anyone’s remembering the latter.)