MARYLAND STATE TREASURER’S OFFICE INSTRUCTIONS FOR BECOMING A DESIGNATED DEPOSITORY FOR STATE AGENCY FUNDS
Effective: May 15, 2013
A financial institution seeking to become a designated depository of State agency operating funds must meet the following minimum qualifications:
1. Depository must be a financial institution as defined in State Finance and Procurement Article, §6-201(e), Annotated Code of Maryland; 2. Depository must have a Kroll rating, or a similar financial strength rating from a nationally recognized statistical rating organization such as Kroll Bond Rating Agency of Frederick, Maryland, of at least a “C”; 3. Depository’s deposits must be insured by the Federal Deposit Insurance Corporation (“FDIC”) up to the maximum amount required by law; 4. Depository must be ready and able to provide collateral for accounts in accordance with the requirements set forth in State Finance and Procurement Article, §§6-202, 6-209 and 6-222, Annotated Code of Maryland; 5. Depository must have financial statements audited annually by an independent certified public accounting firm and receive an unqualified opinion of the auditor in connection with the audit; 6. Depository must have a plan for business continuity and recovery as a result of disaster; and 7. Depository must not be in arrears in the payment of any obligation due and owing the State or any department or unit thereof, including but not limited to the payment of taxes and employee benefits.
A financial institution meeting the minimum qualifications must submit the following documents to the Maryland State Treasurer’s Office, Director of Treasury Management, Louis L. Goldstein Treasury Building, 80 Calvert St., Annapolis, MD 21401:
1. Two (2) original signed copies of the Agency Depository Contract 1.a. An authorized representative of the Depository must initial each of the items in Paragraph B of Article I. 1.b. Depository must complete Paragraph C of Article II by filling in the titles of each of the Account-Related Documents to be applicable to accounts opened under the Agency Depositor Contract. 1.c. Depository must complete Paragraph A.2 of Article VI with an address, telephone number and fax number to be used for official notices relating to the Agency Depository Contract. 1.d. Depository must complete Paragraph B of Article VI with the name and telephone number of the primary contact for all accounts opened under the Agency Depositor Contract. 1.e. In the signature block on the last page: 1.a.1) Depository must fill in its complete legal name. 1.a.2) Depository must fill in its federal tax identification number. 1.a.3) Depository must fill in its Maryland State Department of Assessments and Taxation (SDAT) identification number. 1.a.4) An authorized representative of the Depository must provide a signature, and fill in his/her printed name and title. 1.a.5) A representative of the Depository must provide a signature attesting to the authority of the authorized representative to sign the Agency Depository Contract.
2. Two (2) copies of the financial institution’s standard commercial account fee schedule 2.a. Depository will not be permitted to charge any fees not included on the published fee schedule. 2.b. Actual fees charged to State agencies may be less than standard commercial account fees. 2.c. Standard commercial account fee schedules submitted will be published on the Maryland State Treasurer’s website.
3. Two (2) copies of each Account-Related Document 3.a. For purposes of this requirement, “Account-Related Document” includes any account agreement, authorization form, terms and conditions, or other similar document required by the Depository to open and operate an account and whose terms are intended to apply to accounts opened under the Agency Depository Contract. 3.b. An authorized representative of the Depository must sign any Account-Related Documents that require countersignature by the Treasurer’s Office. 3.c. Account-Related Documents that relate to individual account openings should be signed at the time of any account opening.
4. Two (2) original signed copies of the Collateral Security Agreement 4.a. Depository must leave all dates blank to be filled in by the Treasurer’s Office. 4.b. Depository must fill in its name in the introduction. 4.c. Depository must complete Section 12.A by filling in its contact information for collateralization-related issues. 4.d. In the signature block on the last page: 4.d.1. Depository must fill in its complete legal name. 4.d.2. An authorized representative of the Depository must provide a signature, and fill in his/her printed name and title. 4.d.3. A representative of the Depository must provide a signature attesting to the authority of the authorized representative to sign the Agency Depository Contract.
The Treasurer’s Office will review each application for designation as a State agency funds depository for completeness. Once the Treasurer’s Office has determined that a financial institution meets the minimum qualifications and has provided all of the required documentation, the Treasurer’s Office shall designate the financial institution to be a depository for State agency funds.