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1987 Colorado Attorney General Reports and Opinions 1 (1987)

handle is hein.sag/sagco0031 and id is 1 raw text is: Duane Woodard
Attorney General        0oL
Charles B. Howe                      (    rSTATE SERVICES BUILDING
Chief Deputy Attorney General                              1525 Sherman Street
Alchard H. Forman        DEPARTMENT OF LAW              Denver, Colorado 80203
Solicitor General        OFFICE OF THE ArrORNEY GENEAL  Phone 866-3611 & 866-3621
January 6, 1987
B. J. Thornberry
Deputy State Treasurer
Department of the Treasury
140 State Capitol
Denver, CO 80203
RE:   Whether a pledge of eligible collateral pursuant to the
Colorado Public Deposit Protection Act protects public
deposits if a public depository fails.
AG Alpha No. TR AD AGAPA
AG File No. OAG8601711/APA
Dear Ms. Thornberry:
I am writing in response to your letter requesting a legal opin-
ion concerning the adequacy of present procedures for pledging
collateral to secure public deposits in the event of the failure
of a bank or savings and loan association. You advise that pres-
ently the state treasurer follows the statutory procedures estab-
lished by the Public Deposit Protection Act of 1975, article
10.5, title 11, C.R.S. (1986 Supp.), and the Savings and Loan
Association Public Deposit Protection Act, article 47, title 11,
C.R.S. (1986 Supp.). The statutory requirements pertaining to
each type of financial institution are very similar in most
respects and will be referred to collectively as the Public
Deposit Protection Act or the PDPA. You are concerned whether
the Federal Deposit Insurance Corporation (FDIC) and the Federal
Savings and Loan Insurance Corporation (FSLIC) would honor
pledges of collateral made pursuant to the PDPA in the event a
financial institution fails and there is inadequate federal
insurance coverage for all public deposits.
QUESTION PRESENTED AND CONCLUSION
Is the pledge of eligible collateral by a public depository pur-
suant to the.requirements of the PDPA sufficient to protect unin-
sured public deposits against the claims of other creditors in

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