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Treasurer: Delaware County deposits above FDIC limit are collateralized in TD Bank's PA Act 72 pool
Summary
Treasurer Andrew Nelson said TD Bank confirmed that government deposits above the $250,000 FDIC limit are collateralized in a Pennsylvania Act 72 pooled pledged investment portfolio and described how the pool is managed.
Andrew Nelson, treasurer for the Delaware County Authority, told members at the July meeting that he contacted TD Bank's government-client group to confirm the authority's funds above the $250,000 FDIC insurance limit are protected.
Nelson said TD Bank's government department described a PA Act 72 pooled pledged investment portfolio that collateralizes aggregate government deposits held by TD Bank in Pennsylvania. He said the bank told him the pool consists of AAA-rated investments and is sized to at least 103% of the aggregate government deposits; the pool's holdings are recalculated monthly, Nelson said.
"As a government entity ... our deposits over the $250,000 FDIC limit is collateralized by their PA Act 72 pooled pledged investment portfolio," Nelson said. "It consists of AAA rated investments, and it pulls at least 103% of the aggregate government deposits held in Pennsylvania by TD Bank." Nelson described the arrangement as separate from the bank's commercial holdings and said it is governed by the Municipal Authorities Act's restrictions on allowable municipal investments.
Solicitor Frank Daley confirmed he had reviewed the arrangement and said that, so long as deposits are collateralized under PA Act 72, he had no further legal concerns. The presiding officer asked Nelson to share the written confirmation from TD Bank for the minutes; Nelson said he would email the document to the secretary.
Nelson summarized the practical effect in plain language: the pooled collateral is invested in high-grade government-type instruments rather than being used for commercial lending, and if TD Bank were to fail the pooled collateral would be available to cover government deposits above FDIC limits.
The authority's treasurer provided these comments after the body received its financial report for the period ending July 31, 2025. The transcript includes an illustrative example from a member: if the authority had $500,000 on deposit, the portion above FDIC coverage would be held in the pooled collateral described by TD Bank.
The authority's solicitor and treasurer recommended retaining the TD Bank documentation with the meeting records for audit and public transparency.
