FL H0989

Adds new definitions to public deposits law, including "electing public depository" and "participating public depository" to create two separate classifications of qualified depositories with different requirements.

Allows qualified public depositories to elect to become "electing public depositories" by notifying the Chief Financial Officer and maintaining 100 percent collateral pledge on average daily balance of public deposits, exempting them from cross-guaranty pool obligations.

Establishes procedures for electing public depositories to terminate their election and reenter the cross-guaranty pool, with Chief Financial Officer authority to deny reentry based on capitalization, credit rating, or bank-health factors.

Modifies loss payment procedures to apply only to "participating public depositories" for cross-guaranty assessments, excluding electing public depositories that maintain full collateral coverage.

Effective date: July 1, 2010.