West Virginia State Treasurer’s Office outlines new collateral rules for public deposits at Jefferson County meeting

Shana Clay, Chief Operating Officer of the West Virginia State Treasurer’s Office Banking Services Division, presented an overview of new requirements for collateralizing public funds under the WV Security for Public Deposits Act (§12-1B-1 et seq.) at the Sept. 4 Jefferson County Commission meeting.

Key points included two authorized collateral methods—the Dedicated Single Bank Method and the Multibank Pooled Method—and tiered collateral pledging levels tied to uninsured public-deposit balances: 50% for deposits under $25 million, 75% for $25 million to $125 million, and 100% for deposits above $125 million. The presentation explained that all public depositors will select a designated state depository approved by the State Treasurer’s Office, collateral will be held in benefit to the State Treasurer’s Office (depositors will not see specific collateral), and reporting will be performed monthly via an online collateral system.

The Treasurer’s Office also described a Restricted Financial Institution List authorized under W. Va. Code §12-1C-1 et seq. that identifies institutions engaged in boycotts of energy companies; inclusion on the list is not presented as a statement about financial safety but may affect vendor eligibility in county RFPs. The office provided implementation steps (legislative process, education initiatives, system testing, onboarding), audit confirmation guidance, and contact information for questions.