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Can you summarize 3 COCR 701-6 TC17?
TRUST COMPANIES > Deposit of Securities [Section 11-109-104(1)(a), C.R.S.]
Short Summary
This Rule governs the deposit of eligible securities by trust companies that are not authorized to accept or hold savings deposits, time deposits, or certificates of deposit. The purpose of this Rule is to protect the Division of Banking in the event of the involuntary liquidation of a trust company. Trust companies are required to deposit eligible securities with custodians, with a market value of not less than $250,000. These eligible securities, even if commingled with other assets, are deemed to be held in trust for the benefit of the Division of Banking in case of liquidation. The Custodial Agreement between the trust company and the custodian must include provisions for surrendering the eligible securities to the State Bank Commissioner upon receiving an Order from the Colorado State Banking Board. Trust companies must also provide quarterly reports of the eligible securities on deposit with their custodians. Substitution of eligible securities is allowed, subject to certain conditions. In the event of involuntary liquidation, the custodian(s) must surrender the eligible securities to the Banking Board, and the Division of Banking has a first and prior claim against the eligible securities to satisfy its obligations.
Whom does it apply to?
Trust companies that are not authorized to accept or hold savings deposits, time deposits or certificates of deposit
What does it govern?
Deposit of Securities
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Colorado