DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF BANKING
RULES OF THE COLORADO STATE BANKING BOARD
PERTAINING TO THE PUBLIC DEPOSIT PROTECTION ACT
3 CCR 701-4
EMERGENCY RULE
PDP4 – Standards for Establishing Current Market Value of Eligible Collateral
Section 24-4-103(6) of the Colorado Revised Statutes (C.R.S.) authorizes the Division of Banking(Division) to issue an emergency rule if the Division finds that the immediate adoption of the rule is imperatively necessary to comply with a state or federal law or federal regulation or for the preservation of public health, safety, or welfare and compliance with the requirements of this section would be contrary to the public interest.
Section 1.Authority
Section 2.Scope and Purpose
Section 3.Applicability
Section 4.Effective Date
Section 1.Authority
The Division issues the following emergencyamendment to Banking Board Rule PDP4 –Standards for Establishing Current Market Value of Eligible Collateral (PDP4), according to the authority found in Sections11-101-102, 11-102-104(1)(a),11-10.5-102, 11-10.5-105, and 11-10.5-107, C.R.S.
Section 2.Scope and Purpose
The Colorado State Banking Boardfinds that immediate adoption of this emergency rule is imperatively necessary to comply with a state or a federal law or federal regulation or for the preservation of public health, safety or welfare and that compliance with the rulemaking requirements of section 24-4-103, C.R.S., applicable to non-emergency rules, including prior notice, would be contrary to the public interest.The Public Deposit Protection Act (PDPA), Title 11 Article 10.5, provides protection for public funds held on deposit at eligible public depositories.Rule PDP4 establishes criteria to value eligible collateral pledged to the PDPA program.
An emergency rulemaking of PDP4 is necessary as it establishes the market values of the eligible collateral listed in PDP3.The proposed revisions outline the criteria for establishing current market value of eligible collateral established in Section 11-10.5-107(1)(c).The proposed amendments will update the reference numbers to match those outlined in PDP3 and not change existing valuations of any of the collateral that remain eligible in PDP3.In addition, it is proposed that PDP4 paragraph E, which establishes the market value of PDP3 paragraph E (acceptances and negotiable certificates of deposits),be deleted in its entirety. This action is necessary in response to the proposed deletion of PDP3 paragraph E,as part of the amendments to PDP3 that are scheduled for hearing before the Banking Board on May 15, 2014.Wherefore, the Colorado State Banking Board, pursuant to section 24-4-103(6), C.R.S. has an obvious and stated need to immediately adopt this rule.
Pursuant to sections 11-102-104(1)(a), 11-10.5-105, and 11-10.5-107, C.R.S., the Colorado State Banking Board shall have the authority to amend rules related to the Public Deposit Protection Act.
Section 3.Applicability
This rule applies to all Colorado state chartered commercial banks and national banks that have been certified as eligible public depositories, pursuant to sections11-102-104(1)(a), 11-10.5-102, 11-10.5-104 through 11-10.5-107, C.R.S.
Section 4.Effective Date
This emergency rule is effective April 17, 2014.