Summary of HB 7181

• Adds new definition of "supplemental collateral" as investment securities that do not qualify as eligible collateral but may be offered by depositories as additional security for public deposits.

• Requires qualified public depositories to segregate and maintain supplemental collateral alongside eligible collateral in trust accounts, with monthly market value adjustments.

• Permits depositories to optionally provide supplemental collateral as additional security above the minimum eligible collateral requirements, with supplemental collateral subordinate to eligible collateral protections.

• Allows public depositors to have supplemental collateral included in the commissioner's perfected security interest and establishes procedures for its liquidation in case of depository loss.

• Effective October 1, 2019, with amendments to Connecticut General Statutes sections 36a-330, 36a-333, 36a-334, 36a-337, and 36a-338.