Date Enacted: February 25, 2015
Date Effective: July 1, 2015
Wyoming has recently made changes to depository bond laws. WY HB 30 is a revision to the existing law.
The revisions clarify surety bond requirements for depositories of state money and define how interest on government deposits is calculated and paid.
As laws change, many more banks will wish to apply to be state depositories. Some bankers may have questions about the surety bonds associated with this process — the best thing is to consult an agency working many surety bond companies which will explain the process and help you get bonded easily.
Amendment to Quarterly Payment Date Provision of the Surety Bond Requirement
Wyoming has made clarifications to its law regarding when interest on state deposits will be paid, in effect amending the provisions related to securing the deposit of state funds. In the past, deposit interest was paid on the first day of the quarter. Now the payment of interest must happen on the first business day of the quarter.
The change ensures that banks are not required to pay (or surety bonds required to cover) interest on a day they would normally consider a holiday or that the state would consider a holiday. All transactions will happen during regular business days.
As before, the interest will be paid to the state treasurer at the rate set by the board of deposits.
Other Notable Changes
Apply to Be a State Depository Anytime
Prior to the amendment, financial institutions could only apply before the first Monday in June. Now, banks can apply at any time. The applications will still go to the secretary of the board of deposits with a sworn statement regarding the financial health of the bank. There will be a required addition to the application of a certified resolution that provides proper authority of the depository.
Modifications to Continued Certification
Once an application is approved, the bank collateral officer will be assigned by the secretary of the board of deposits and the chairman. The bank will receive a written order that declares it a state depository and this status will stand until the board takes away the designation. Every year, the bank will be required to submit a certified copy of its resolution to show that its authority as a state depository hasn’t been removed. It will also provide a current statement of condition. If a financial institution designated as a state depository becomes the subject of state or federal enforcement action, its status as a depository can be revoked before the date of maturity without the usually required 45 days’ written notice. These changes are the largest and most impactful of the revisions to the law, though the amendments to the Wyoming Depository Act should be read in full for a complete understanding of the modifications. What are your thoughts about the revision? Share them with us below.