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Collateral Pool Reporting

Forms and Documents

Overview

In the summer of 2003, the Nevada legislature approved legislation to establish a program to monitor a collateral pool for public deposits. The program serves as an alternative method to allow financial institutions and local government agencies within the state to participate in pooled collateralization of their deposits in an efficient, cost effective and safe manner when collateralizing public funds.

    Objectives include:

    • Reduced risk for government agencies through collateral pool;
    • Centralized reporting function through State Treasurer's office.
    • Cost effective way for financial institutions to pledge collateral.
    • Acceptable securities will be pledged at a third party depository on behalf of the depository for the benefit of the State Treasurer to secure all public deposits.

      Advantages of Nevada Collateral Pool Program

       FINANCIAL INSTITUTIONS   GOVERNMENT AGENCIES 
      Centralized processing and management of all pledging and maintenance of collateral through State Treasurer’s office rather than with each local agency.   Elimination of pledging and maintenance of fluctuating collateral balances for public deposit accounts.
      Reduction in overall collateral requirement by utilization of a single account versus accounts with each government agency.   State Treasurer manages and monitors all collateral for all public deposits.
      Single collateral pledge agreement with the State Treasurer rather than individual agreements with each government agency.   State Treasurer manages activities to maintain 102% pledged collateral for public deposits.
      Ability to use a single custodian to hold the collateral for all government agencies.   Elimination of the need to establish a custodial agreement to hold collateral.
      Elimination of reporting to government agencies.   Increased reporting of pledged securities for public deposits.

        Links to Other Collateral Websites

          STATE

          FEDERAL