|Case Date:||July 20, 1987|
Colorado Attorney General Opinions 1987. AGO 87-6. July 20, 1987Department of Law Attorney General Opinion FORMAL OPINION of DUANE WOODARD Attorney General Opinion No. 87-6 AG Alpha No. TR AD AGAQD Nancy Coleman Deputy State Treasurer Department of the Treasury State Capitol, Room 140 Denver, Colorado 80203 RE: Separate Federal Deposit Insurance Coverage for the State Compensation Insurance AuthorityDear Ms. Coleman: I am writing in response to your request for a legal opinion concerning the extent of federal insurance coverage for deposits of moneys of the State Compensation Insurance Authority. This opinion updates past opinions which discussed federal insurance coverage for deposits of the former State Compensation Insurance Fund. QUESTION PRESENTED AND CONCLUSION Whether deposits of moneys of the State Compensation Insurance Authority placed in federally insured institutions are entitled to deposit insurance coverage up to $100,000 separately from deposits of state funds for which the treasurer also serves as custodian. Yes. ANALYSIS Federal law provides that the official custodian of moneys of a "public unit," which term includes the State and its political subdivisions, is insured separately by the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance Corporation (FSLIC) up to $100,000 for deposits in a federally insured institution. See 12 U.S.C. sec. 1728(d)(1)(ii) (1980), 12 U.S.C. sec. 1813(m)(1) (1986 Supp.), 12 U.S.C. sec. 1821(a)(2)(A)(ii) (1980). If the same person is official custodian for more than one public unit, she is separately insured to the maximum amount with respect to the aggregate amount of public funds held by her for each public unit at a federally insured institution. 12 C.F.R. secs. 330.8(a)(6), 564.8(a)(2) and Appendix (1987). This office has had occasion to review federal law on deposit insurance coverage several times in recent years. Most recently, in an opinion dated May 8, 1985, I concluded that deposits of funds in the State Compensation Insurance Fund would be aggregated with other moneys of the Colorado Department of Labor and Employment, a principal department of state government. I further concluded that that department's deposits would be entitled to insurance coverage separate from other state deposits. During the 1986 legislative session, the...
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