Local Agency Security Program
The Local Agency Security Program (LASP) administers Government Code, Section 53630 through 53686, and California Code of Regulations, Section 16001.1.1 through 16010.1.3, governing the reporting and collateralization of California local agency deposits by insured depository institutions.
How to reach us:
Department of Financial Protection and Innovation
One Sansome Street, Suite 600
San Francisco, CA 94104-4428
Phone: (415) 542-6305
Fax: (415) 263-8508
E-mail: Joe Lam, firstname.lastname@example.org.
Approved Agents of Depository
The financial institutions listed below have been approved by the Administer of Local Agency Security to act as Agents of Depository in accordance with Government Code Section 53657.
- Bank of the West
- Bank of New York Mellon Trust Company, N.A.
- California Bank and Trust
- City National Investments
- Federal Home Loan Bank of San Francisco (for Letter of Credit only)
- MUFG Union Bank, N.A., Global Custody Services
- Principal Bank
- TIB-The Independent Bankers Bank
- U.S. Bank Institutional Trust & Custody
- Wells Fargo Bank, Select Custody Services
CDARs Deposit Reporting Instructions
GC 53635 (CDARS Program) was enacted into law in 2005. Under GC Sections 53661(e) and 53663(b), every depository is required to file reports of local agency deposits held by such depository. Since most of the CDARS funds are local agency deposits, depositories are required to report such deposits to the Administrator of Local Agency Security Program unless the depository can demonstrate that such funds are not local agency deposits.
The purpose of the CDARS Program is to spread the deposit to various depositories, each have an amount under the FDIC insured amount. Thus, all the funds under the CDARS Program are covered by FDIC Insurance pursuant to this CDARS Program. However, even though part of the local agency deposits is FDIC insured, the depository is required to pledge collateral on all local agency deposits unless the treasurer of local agency waives security for the portion of any deposits as is insured pursuant to federal law. Therefore, the depository that accepts the local agency funds must have a waiver if it does not wish to pledge collateral on the FDIC insured portion. A waiver is not required on deposits received by a depository through the CDARS program.
Local Agency Security Law
Disclaimer: Links to various websites are provided for your convenience. Although we strive to provide you with current and accurate information, errors and omissions may occur. This is unintentional and does not exempt any institution from complying with the laws and regulations of the State of California.
California Government Code: Title 5, Division 2, Part 1, Chapter 4, Article 2, Sections 53630 through 53686 regulate the Local Agency Security Program (LASP). The California Government Code is available on-line through the Legislative Counsel of California. For your convenience, we have provided a link to the California Legislative Information Office’s web site where you can access Sections 53630 through 53686 under California Law.
Local Agency Security Regulation: California law is often supplemented by regulations. Title 2, Division 4.5 (Sections 16001.1.1 through 16010.1.3) of the California Code of Regulations (CCR) supplements the Government Code pertaining to the Local Agency Security Program. For your convenience, we have provided a link to the California Office of Administrative Law.
LASP – Reporting Requirements and Forms
Depository Institutions that maintain local agency deposits are required to submit a report on a weekly and quarterly basis to the Administrator of Local Agency Security Program, in accordance with Government Code 53663(b) and 53661(e), respectively.
Agents of Depository Institutions are required to report to the Administrator within two business days after any addition, withdrawal, or substitution of pooled securities that secure local agency deposits, in accordance with California Government Code Section 53663 (a). Agent of Depository Institutions are also, on a quarterly basis, responsible for providing a certification of market value of eligible securities maintained by depository institutions is comply with Government Code 53652.
The weekly report information must be as of the close of business each Wednesday and submitted to the Administrator within five(5) business days.
|Report as of Date
Forms and Instructions
Key Consumer Links
Approved by Lisa Huang 9/2019
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