CT SB00827

Redefines "eligible collateral" for public deposits to include investments with readily available prices such as U.S. treasury securities, government agency obligations, mortgage-backed securities, and municipal/state bonds rated in the three highest rating categories, while removing specific mortgage loan criteria.

Simplifies collateral requirements for qualified public depositories by establishing a base requirement of 25% of uninsured public deposits, with reduced requirements (10%) for well-capitalized institutions and increased requirements (110-120%) for undercapitalized or newly established depositories.

Requires monthly (instead of quarterly) valuation of eligible collateral and establishes a new "formal regulatory order" definition; permits the commissioner to require collateral amounts up to 120% if necessary for public deposit protection.

Modifies collateral segregation rules to require undercapitalized banks and credit unions to place collateral with independent financial institutions rather than their own trust departments.

Updates reporting requirements to include tier one leverage ratios and net worth ratios (for credit unions) alongside risk-based capital ratios, and requires monthly collateral valuations with CUSIP numbers reported quarterly.