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Stockman Bank briefs Treasure County on replacing Federal Home Loan Bank bonding
Summary
A Stockman Bank representative told commissioners the Federal Home Loan Bank is exiting municipal bond coverage; Treasure County will transition to pooled (T-bill/agency-backed) bonding and update signature cards so the treasurer and two commissioners can sign.
A Stockman Bank representative explained to the board that the Federal Home Loan Bank is exiting the municipal bonding business, and recommended replacement with pooled bonding instruments backed by federal agency securities. The bank representative described how the pooled approach uses shorter-term Treasury or agency securities that are periodically rotated and can be reported quarterly, monthly or semiannually depending on county preference.
The bank advised updating signature cards and authorizations to reflect current commissioners and the treasurer and recommended listing two commissioners plus the treasurer on Exhibit B so the bank can issue the new pooled bond. Commissioners discussed frequency of reporting and whether the treasurer should continue to receive quarterly updates; the board moved to sign the necessary exhibit and security packages and authorized execution of the replacement bonding documents.
