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Treasurer cautions against releasing pledged securities at Independence Bank
Summary
Daniels County treasurer updated commissioners on a bank request to release pledged securities tied to county deposits; the treasurer recommended leaving the pledges in place because county balances fluctuate seasonally and the bank can re-add collateral as needed.
The Daniels County treasurer told commissioners Feb. 17 that Independence Bank requested release of pledged securities that currently collateralize county deposit balances above the FDIC coverage threshold.
Treasurer explained the bank monitors account balances and said released securities could be reused elsewhere, but the bank also indicated it would re-add securities if county balances rose again. The treasurer said county account balances vary seasonally — ranging multiple millions of dollars at times — and that she was not comfortable authorizing release at present. She recommended leaving pledged collateral in place and commissioners concurred.
Treasurer added that the bank cannot release pledged securities without the county’s signature, and staff agreed to leave the holdings intact for now while monitoring deposits ahead of tax-collection months in April and May.
Commissioners asked questions to ensure continuity of cash management and heard staff confirm the bank would add collateral automatically if balances exceed pledged levels; no release action was taken.
