The State Treasurer works with financial institutions across West Virginia to become approved designated state depositories. These depositories have many locations which provide convenience to state spending units and other government entities to deposit public funds.  To minimize financial risk, the financial institutions are required to provide collateral on uninsured balances of these deposits. 

Collateralization of State Deposits

The West Virginia State Treasurer’s Office is responsible for ensuring state funds deposited in financial institutions are properly collateralized and protected. State law requires a financial institution provide collateral of at least one hundred two percent (102%) of the amount of state funds on deposit with that financial institution, in excess of the amount insured by an agency of the federal government.

Financial institutions may reference eligible collateral types in the link below.

Overview of the West Virginia Security for Public Deposits Act

The West Virginia State Treasurer’s Office is responsible for ensuring public funds deposited in financial institutions are properly collateralized and protected. The West Virginia Security for Public Deposits Act authorizes public deposits made by the state or any political subdivision of the state be held at an approved designated state depository and collateralized per West Virginia Code §12-1B-5 and §12-1B-7. The Act allows financial institutions two methods of collateralizing public funds: the Dedicated Single Bank Method and the Multibank Pooled Method. All public funds will be collateralized, and collateral will be held in benefit to the West Virginia State Treasurer. There are no exemptions or exceptions to this Act. West Virginia State Code supersedes all local laws & ordinances.

House Bill 4801 was passed by the West Virginia Legislature and signed by the Governor on February 23, 2024. The bill removed the original implementation date of March 2024 and allows the State Treasurer to announce the commencement of the West Virginia Security for Public Deposits Program by publishing a notice in the State Register at least 30 days prior to commencement of the program. An announcement will also be made on the State Treasurer’s Office website.