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QPD Collateral Requirements

Florida’s public deposits program has four standard collateral pledging levels of 25%, 50%, 110%, and 150%. The program's administrative rules provide the details on how a QPD's collateral pledge level is to be determined and involves consideration of a QPD's average financial condition ranking from two nationally recognized financial rating services as well as consideration of financial ratios, trends, and other pertinent information. QPDs with higher rankings and stronger financial condition will be eligible for the 50% and 25% collateral pledge levels which is an advantage that helps in the areas of liquidity and asset management.

BCM notifies all QPDs of their average financial condition ranking each calendar quarter and also notifies QPDs of any collateral pledge level changes as such decisions are made.

QPDs whose average ranking falls to the lowest range of 0-15 must withdraw from the public deposits program or agree to a limit on the amount of public deposits it will hold and pledge or deposit collateral equal to 150% of such limit.

Please see the administrative rules for additional information. A QPD may use cash, U.S. Treasury securities, U.S. agency securities, investment grade municipal and corporate bonds, as well as Federal Home Loan Bank letters of credit as collateral in Florida's public deposits program as outlined in Section 280.13, F.S.