D.C. Mun. Regs. r. 1-4801

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 1-4801 - APPROVAL OF FINANCIAL INSTITUTIONS

4801.1

Each financial institution desiring to be an eligible financial institution shall submit information, in the form provided by the Chief Financial Officer of the District of Columbia, which is appropriate for the evaluation of the condition of such financial institution.

4801.2

The factors to be considered by the Chief Financial Officer of the District of Columbia in approving a financial institution as an eligible financial institution shall include, but not be limited to, the following:

(a) The financial history and condition of the financial institution and its affiliates;

(b) The submission of reports by the financial institution and its affiliates to the Federal Reserve System, Securities and Exchange Commission, and National Association of Securities Dealers;

(c) The prospects of the financial institution and its affiliates as shown by satisfactory business relations with other governments;

(d) The integrity of the management of the financial institution and its affiliates reflected in a history of dealing in government securities;

(e) The efficiency of the financial institution and its affiliates in making delivery of collateral and providing the requested transaction documentation; and

(f) The convictions, fines, reprimands, suspensions or other penalties imposed by any court of law or regulatory body on the financial institution or its affiliates.

4801.3

No financial institution desiring to be an eligible financial institution shall be required to submit information and reports not made public under federal regulations.

4801.4

Each eligible financial institution shall keep current any information required to be submitted pursuant to this subsection and shall immediately notify the Chief Financial Officer of the District of Columbia of any change in its condition or in its total assets which causes investments to exceed the limitation of § 4802.

4801.5

Each eligible financial institution and each of its affiliates shall submit its financial statements and audit report prepared by an independent certified public accountant to the Chief Financial Officer of the District of Columbia not later than four (4) months after the end of each of its fiscal years.

4801.6

Any financial institution which misrepresents any material information required to be submitted pursuant to this section shall be terminated as an eligible financial institution by the Chief Financial Officer of the District of Columbia and shall be ineligible for placement of investments for public funds for a period of not less than two (2) years thereafter.

4801.7

The Chief Financial Officer of the District of Columbia may in his or her sole discretion terminate an eligible financial institution for cause. Cause shall include the following:

(a) Bankruptcy;

(b) Default or insolvency;

(c) Exceeding limitation on amount;

(d) Failure to deliver collateral; or

(e) Slowness in repayment.

4801.8

The Chief Financial Officer of the District of Columbia shall publish in the D.C. Register the name and address of each financial institution which has been approved by him or her as an eligible financial institution or has been terminated by him or her.

D.C. Mun. Regs. r. 1-4801

Final Rulemaking published at 32 DCR 5098-5100 (September 6, 1985)