What types of securities can be pledged as collateral to secure State deposits?
• Securities used as collateral for State deposits must be held at the State’s fiscal agent. • For demand deposit accounts, acceptable securities that may be used are outlined in State Finance Law Section 105 and include U.S. Treasuries, New York State Municipals and Government National Mortgage Association (GNMAs). Banks may also use a surety bond to secure State deposits. The bond must be issued by a AAA rated insurance company. • For certificates of deposits, acceptable securities that may be used are outlined in New York State Finance Law Section 98a.
