(A) Collateralization will be required on two types of investment: certificates of deposits and repurchase agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest for all certificates of deposit and long-term repurchase agreements. For short-term repurchase agreements or sweep accounts, a collateralization level of at least 100% of market value of principal and interest will be maintained.
(B) (1) The collateral shall fall within S.C. Code §§ 6-5-10, 12-45-220 and 11-1-50.
(2) Protection of deposits of public funds and trust funds by federal deposit insurance; other security.
(3) The portion of the public monies, as may be on deposit in any bank and protected by federal deposit insurance, shall be exempt from the requirement that security be furnished for it by the bank and security shall be required only for the portion of the deposits as shall exceed the amount covered by the insurance. All public officers who have deposited public funds in banks for which security or collateral is required shall obtain it only for the amount by which the particular deposit exceeds the sum protected by federal deposit insurance. The portions of trust funds as may be on deposit in any bank and for which security is now required shall be secured only for the amount by which the same exceeds the amount protected by federal deposit insurance.
(C) Collateral will always be held by an independent third party with whom the county has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the county and retained. The right of collateral substitution is granted.
(‘77 Code, § 8-93) (Ord. 1592, passed 3-16-92)