Collateralization Requirements
All CDs over and above the Base CD must be
collateralized in one of three ways. Your institution can either:
- Purchase Private Insurance or a Surety Bond for the full amount of
the CD and send the certificate of insurance to the Treasurer's Office.
- or -
- Use the CDARS program from the Promontory Interfinancial Network and send a confirmation receipt to the Treasurer's Office.
- or -
- Pledge a security to our account at the Federal Reserve.
To
pledge a security:
Send a fax on your institution's letterhead to 617-973-3619. The fax
should say:
"We want to open an account under the name of the 'Finance
Authority of Maine.' Please link our ABA number to the Account of the
'Finance Authority of Maine' #A700 for the purpose of collateralization.
Our ABA # is: ________________________ Our Contact Information is:
___(name)__________ at _(phone number)_."
This will establish
a joint account with the Federal Reserve in Boston. The security you
pledge will collateralize the CD per our program rules.
If you need to speak with the Federal Reserve Bank, the phone number is
1-800-327-0147 and you choose Option #1.
The address to send certificates of insurance or confirmation of CDARS payment to is:
Michelle Kimball
Office of the State Treasurer
39 State House Station
Augusta, ME 04333-0039
