There is a two-step
process for financial institutions to receive state funds. The
first step is to become a Qualified Public Depository The
application and information on how a financial institution becomes a
Qualified Public Depository (QPD) is available from the Treasury's
Bureau of Collateral Management. Please click on this link for information on applying for status as a
Qualified Public Depository.
The second step is to
complete and return the following documents:
Agreement for Preauthorized Payments
These documents are
obtained by calling the Treasury at 850-413-2775 or 850-413-2794.
Treasury documents will be mailed to the official bank address
listed in the Florida Financial Institutions Directory. Completed
documents should be signed and the originals mailed to:
Financial Officer of Florida
Division of Treasury/Bureau of Funds Management
Certificates of Deposit
Hermitage Centre, 4th Floor
200 E. Gaines Street
Tallahassee, FL 32399-0344
documentation has been confirmed, within five business days, the
participant will be set up as a new CD Participant in the CD system
The total amount of
funds placed in any one Qualified Public Depository, shall be no
more than the lesser of 10% of the financial institution’s assets or
State funds are
placed in a Qualified Public Depository for two, three and/or five
year maturities. Funds will be collected through the Automated
Clearing House when certificates mature.
Two, three and/or
five year fund placements will be made to Qualified Public
Depositories once a month. The total amount of funds available for
each maturity, the minimum acceptable interest rates for each
maturity, and the maturity dates of the certificates of deposit will
be emailed to participating qualified public depositories on the
20th of every month, or if the 20th falls on a weekend or holiday,
the first work day after the 20th. This notification will be sent
no later than 8:30 A.M. Eastern Time.
The Chief Financial
Officer will establish the maturity dates, minimum acceptable
interest rates and the total amounts to be placed.
Depositories will submit request(s) for funds in the prescribed
format. If a Qualified Public Depository chooses to bid on more
than one maturity, a separate bid must be submitted for each
maturity date. The submission for all requests must state the
interest rate bid, the amount requested and the maturity date. The
amount requested should be a multiple of $100,000. If five-year
placements are offered, five-year bids will be processed first.
Bids must be
received by 10:00 A.M. Eastern Time on the day of
notification. Unless other arrangements are made, bids must be made
by completing the bid request form on-line and emailing it to
Funds will be
placed in descending order of interest rate bids until all available
funds are placed or until all acceptable bids are filled.
When certificate of
deposit requests exceed available funds, placements will be made on
the basis of the highest interest rate bid first, then the next
highest rate until all available funds are placed. If there are
identical interest rate bids and insufficient funds to fill all
requests, then funds will be distributed on a pro-rata
basis. However, such pro-rata distribution will be only in
multiples of $100,000.00.
Depositories must quote interest rates to 2 decimal points (i.e.
Funds will be
distributed by wire transfer on the same day.
On the maturity date
and on scheduled interim interest payment dates, Qualified Public
Depository shall allow the “interest and principal amount”
designated in the confirmation to be debited to its account, or to
its correspondent financial institution’s account and credited to
the demand account of the Chief Financial Officer. Such debit and
credit shall be through the Automated Clearing House operated by the
Federal Reserve Bank of Atlanta in Jacksonville or Miami. Qualified
Public Depository must have completed and have on file with Chief
Financial Officer the Authorization Agreement for Preauthorized
The Qualified Public
Depository must place the interest and principal amount due in the
designated ACH account by each interest due date and principal
maturity date as stated on the confirmation.
The Chief Financial Officer will calculate interest to be paid
quarterly by the following:
(Amount of Principal x Interest Rate x Number of Days the Principal
has been held by the Qualified Public Depository ÷ by Number of Days
in the Calendar Year).
start accruing on the date of deposit.
will be charged to Qualified Public Depository if the funds due are
not in the designated account at such time the Chief Financial
Officer’s demand bank sweeps the designated ACH account. Such
additional interest shall be calculated at the Fed Funds rate in
existence during the time period between the funds due date and the
date the funds are received by the Chief Financial Officer. Such
additional interest shall be calculated on the interest and
principal amount due starting from the interest and principal due
date to the day the Chief Financial Officer has been credited with
the interest and principal due. The Chief Financial Officer will
notify Qualified Public Depository the additional interest amount
and instructions for payment.
institution requesting early withdrawal from the State of Florida
Certificate of Deposit program will be penalized only in the case of
a loss to the State. This is based upon comparing the Certificate of
Deposit contract rate versus the rate the Treasury could earn by
investing the returned funds in U.S. Treasury securities with a
maturity comparable to the Certificate of Deposit maturity. If there
was no loss to the Treasury, requests can be granted with no
If the difference
between the two rates creates a loss to the Treasury, early
withdrawals will be allowed with payment of a penalty.
((Certificate of Deposit Contract Rate – US Treasury Rate = Rate
(Principal Amount x Rate Difference x Number of Days Held ÷ Number
of Days in the Calendar Year = Their Interest Penalty))
If requesting more
than one certificate of deposit amount to be withdrawn, a separate
calculation will be made for each Certificate of Deposit.
accepting the terms of the early withdrawal policy will not be
allowed to participate in placement of Certificate of Deposit funds
until after the date of the last maturity date of the funds being
withdrawn. Funds being returned to Treasury must be wired to the
Chief Financial Officer’s concentration account on the agreed upon
date. If the return of funds results in a penalty being due to
Treasury, the Chief Financial Officer will notify Qualified Public
Depository the principal, any interest due and the penalty amount
due with instructions for payment.
Revised March 3, 2009