SB 826 — Creating exemption from bond or security requirement of banking institutions holding certain funds for county commissions

WEST VIRGINIA LEGISLATURE REGULAR SESSION Enrolled Committee Substitute for Senate Bill 826 BYBy SENATONELSONSenator [OriginatingNelson in[Passed theMarch Committee7, on2024; Banking and Insurance;

reportedin Februaryeffect 26,90 2024]days from passage] Enr CS for SB 826 AAN BILLACT to amend and reenact §7-6-2 of the Code of West Virginia, 1931, as amended, relating to creating an exemption from the bond or security requirement of banking institutions holding funds for a county commission in excess of the amount insured by an agency of the federal government by allowing for the redeposit of the funds through a deposit placement program that meets certain conditions.

Provided, That the clerk of the county commission shall keep a record of each surety on all personal bonds given as hereinbefore provided and the clerk shall notify the county CS for SB 826 commission of every recorded conveyance of real estate made by any surety on said personal 1 Enr CS for SB 826 bond.

A bond may not be accepted by the county commission until it has been submitted to the prosecuting attorney, and certified by him or her to be in due and legal form, and conformable to the provisions of this article, which certificate shall be endorsed thereon:thereon.

Provided,(c) ThatThe the.county commission may, in lieu of the bond required pursuant to this section, accept as security for money deposited as aforesaid, interest-bearing securities of the United States, or of a state, county, district or municipal corporation, or of the federal land banks, or endorsed county and district warrants of the county in which the depository is located, or letters of credit of the federal land banks, or federal home loan banks, or any other letters of credit approved by the treasurer;

(c) The county commission may, in lieu of the bond provided hereinbefore required pursuant to this section, accept as security for money deposited as aforesaid, interest-bearing securities of the United States, or of a state, county, district or municipal corporation, or of the federal land banks, or endorsed county and district warrants of the county in which the depository is located, or letters of credit of the federal land banks, or federal home loan banks, or any other letters of credit approved by the treasurer;

or the county commission may accept the securities as partial security to the extent of their face value for the money so deposited, and require bond for the remainder of the full amount hereinbefore specified, to be named in the bond, and in the bond so required, the acceptance of securities as partial security, and the extent thereof, shall be set forth:forth.

Provided, however, That a.

CS for SB 826 (2) The selected depository arranges for the deposit of the funds in certificates of deposit in one or more banks or savings and loan associations wherever located in the United States, for the account of the county;

2 Enr CS for SB 826 (3) The full amount of principal and accrued interest of each certificate of deposit is insured by the Federal Deposit Insurance Corporation;

(3) The full amount of the funds of the county commission redeposited by the selected depository into deposit accounts in banks or savings and loan associations pursuant to this CS for SB 826 subsection, plus accrued interest, if any, shall be insured by the Federal Deposit Insurance Corporation;

and (4) On the same date that the funds of the county commission are redeposited pursuant to 3 Enr CS for SB 826 this subsection, the selected depository receives an amount of deposits from customers of other financial institutions through the direct placement program that are equal to the amount of the county commission’s funds redeposited by the selected depository.

(c) (f) The hypothecation of the securities shall be by proper legal transfer as collateral security to protect and indemnify by trust any and all loss in case of any default on the part of the banking institution in its capacity as depository as aforesaid.