ADE Director's Communication Memo Form


Memo Number : FIN-06-072

Date Created : 04/25/2006

Attention:

Superintendents
Co-op Directors

Type of Memo: Informational
Response Required: No
   
Section:   Fiscal and Administrative Services - Dr. Bobbie Davis, Assistant Commissioner
Subject:
Certificates of Deposit Account Registry Service

Regulatory Authority:
N/A

Contact Person:
Patty Martin

Phone Number:
501-682-5124

E-mail:
pmartin@arkedu.k12.ar.us

Act 86 of the Arkansas 85th General Assembly provided additional authority for the investment of public funds. The law permits the portion of public funds deposited in an eligible financial institution above the deposit insurance limit of $100,000 to be exchanged with another bank that participates in the Certificates of Deposit Account Registry Service (CDARS).

CDARS is a deposit placement service that enables a participating financial institution to accept deposits exceeding $100,000 while still obtaining full FDIC coverage for the deposit. An eligible financial institution is one that is included on a list compiled annually by the Bank Commissioner. The list identifies all financial institutions with a main office or branch in AR with deposits ensured by FDIC. The list is available at http://www.arkansas.gov/bank/PublicFunds.html

The CDARS Program provides school districts with FDIC insured investments. School Districts with questions about a specific investment should request a written legal opinion from the group offering the investment to ensure that the investment is within the parameters of A.C.A. 19-8-Subchapter 1.

Attachments:
    None

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