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About the PA Treasury
 

Commonwealth Depositories

The Pennsylvania Treasury keeps deposits in nearly 70 financial institutions throughout the Commonwealth, including about a dozen banks that function as “active depositories” where Treasury maintains accounts from which payments are issued to pay the Commonwealth’s bills. 

Collateral Required
Treasury requires collateral for any deposit in excess of FDIC coverage. Treasurer McCord worked with the banking community and leaders in the General Assembly to reduce the collateralization requirements for Commonwealth deposits in state depositories from 120% to 102% – bringing Pennsylvania’s collateralization rules into line with modern business practices and those of neighboring states.

Now, Pennsylvania law requires a pledge of securities at the Federal Reserve at 102% of market at par and accrued interest or a Letter of Credit at 100% at market of par and accrued interest from the Federal Home Loan Bank of Pittsburgh. Click here for more details on Pennsylvania’s collateral requirements.

For more information, please contact Treasury at depository@patreasury.gov.

Community Banking Initiative
Treasurer McCord’s successful advocacy to reduce the collateralization requirement means it is now a little easier for banks of all sizes to become a Commonwealth Depository.

To help smaller banks that so often help small businesses, Treasurer McCord allocated $100 million for investment in 12-month CDs in community banks with less than $1 billion in assets. The initiative is intended to inject Treasury’s assets into the local economy and free up more bank capital to be loaned and invested locally.

All community banks are encouraged to participate or increase their participation (up to $1 million per bank). For more information or to participate in this program, please contact Treasury’s Cash Management team via depository@patreasury.gov.

How to Become a Depository
To become a Commonwealth depository, please submit to Treasury:

Submit to:
Michael Kondrack
Bureau of Cash Management
Pennsylvania Treasury
121 Finance Building
Harrisburg, PA 17120
depository@patreasury.gov

Treasury will evaluate the questionnaire and reports to ensure compliance with the minimum requirements established by the Pennsylvania Fiscal Code and the Board of Finance and Revenue.

An application for the Deposit of State Funds will be provided at that time. Once completed, the application will be sent to the Board of Finance and Revenue for approval.

Time Deposit Open Account Commonwealth Depository
To initiate the depository relationship, after approval, the Commonwealth will place a six-month Time Deposit with the approved institution. The Time Deposit Open Account is a maximum deposit of $1,000,000 and maintains two fixed-term periods – January 1 through June 30, and July 1 through December 31. The rate on the deposit is set by resolution of the Board of Finance and Revenue prior to each six-month period. Click here to see historical rate information for the Time Deposit program. Interest is calculated at actual days/365 days and is due electronically upon maturity or roll-over.

 


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