Pursuant to S.C. Code § 6-5-15, depositories have duties and responsibilities toward public monies on deposit that may differ from their duties relative to nonpublic funds. South Carolina law requires public funds to be collateralized; that is, the depository must secure its public fund accounts by maintaining with the agent of the depository securities having a market value consistent with the current state's policy. If a depository uses mortgage-backed securities as collateral for public funds, the market value of the securities must be consistent with the state's requirement. An independent third party with whom the entity has a current custodial agreement will always hold collateral. A clearly marked evidence of ownership, i.e., safekeeping receipt, must be supplied to the city and retained.
(Ord. 16-21, passed 6-8-21)