Florida Statutes 280.10 – Effect of merger, acquisition, or consolidation; change of name or address
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(1) When a qualified public depository is merged into, acquired by, or consolidated with a bank, credit union, savings bank, or savings association that is not a qualified public depository:
(a) The resulting institution shall automatically become a qualified public depository subject to the requirements of the public deposits program.
Terms Used In Florida Statutes 280.10
- Custodian: means the Chief Financial Officer or a bank, credit union, savings association, or trust company that:(a) Is organized and existing under the laws of this state, any other state, or the United States;(b) Has executed all forms required under this chapter or any rule adopted hereunder;(c) Agrees to be subject to the jurisdiction of the courts of this state, or of the courts of the United States which are located within this state, for the purpose of any litigation arising out of this chapter; and(d) Has been approved by the Chief Financial Officer to act as a custodian. See Florida Statutes 280.02
- Default or insolvency: includes , without limitation, the failure or refusal of a qualified public depository to pay a check or warrant drawn upon sufficient and collected funds by a public depositor or to return a deposit on demand or at maturity together with interest as agreed; the issuance of an order by a supervisory authority restraining such depository from making payments of deposit liabilities; or the appointment of a receiver for such depository. See Florida Statutes 280.02
- Governmental unit: means the state or any county, school district, community college district, state university, special district, metropolitan government, or municipality, including any agency, board, bureau, commission, and institution of any of such entities, or any court. See Florida Statutes 280.02
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Public deposits program: means the Florida Security for Public Deposits Act contained in this chapter and any rule adopted under this chapter. See Florida Statutes 280.02
- Qualified public depository: means a bank, credit union, savings bank, or savings association that:
(a) Is organized and exists under the laws of the United States, the laws of this state, or the laws of any other state or territory of the United States. See Florida Statutes 280.02(b) The contingent liability of the former institution shall be a liability of the resulting institution.(c) The public deposits and associated collateral of the former institution shall be public deposits and collateral of the resulting institution.(d) The resulting institution shall, within 90 calendar days after the effective date of the merger, acquisition, or consolidation, deliver to the Chief Financial Officer:1. Documentation in its name as required for participation in the public deposits program; or2. Written notice of intent to withdraw from the program as provided in s. 280.11 and a proposed effective date of withdrawal which shall be within 180 days after the effective date of the acquisition, merger, or consolidation of the former institution.(e) If the resulting institution does not meet qualifications to become a qualified public depository or does not submit required documentation within 90 calendar days after the effective date of the merger, acquisition, or consolidation, the Chief Financial Officer shall initiate mandatory withdrawal actions as provided in s. 280.11 and shall set an effective date of withdrawal that is within 180 days after the effective date of the acquisition, merger, or consolidation of the former institution.(2) When a qualified public depository disposes of any of its Florida public deposits or collateral securing such deposits in a manner not covered by subsection (1), the qualified public depository originally holding the public deposits shall be responsible for:(a) Ensuring the institution receiving such public deposits becomes a qualified public depository and meets collateral requirements with the Chief Financial Officer as part of the transaction.(b) Notifying the Chief Financial Officer within 30 calendar days after the final approval by the appropriate regulator.A qualified public depository that fails to meet such responsibilities shall continue to collateralize and report such public deposits until the receiving institution becomes a qualified public depository and collateralizes the deposits or the deposits are returned to the governmental unit.
(3) If the default or insolvency of a qualified public depository results in acquisition of all or part of its Florida public deposits by a bank, credit union, savings bank, or savings association that is not a qualified public depository, the bank, credit union, savings bank, or savings association acquiring the Florida public deposits is subject to subsection (1).(4) The qualified public depository shall notify the Chief Financial Officer of any acquisition or merger within 30 calendar days after the final approval of the acquisition or merger by its appropriate regulator.(5) Collateral subject to a collateral agreement may not be released by the Chief Financial Officer or the custodian until the assumed liability is evidenced by the deposit of collateral pursuant to the collateral agreement of the successor entity. The reporting requirement and pledge of collateral will remain in force until the Chief Financial Officer determines that the liability no longer exists. The surviving or new qualified public depository shall be responsible and liable for all of the liabilities and obligations of each qualified public depository merged with or acquired by it.(6) Each qualified public depository shall report any change of name and address to the Chief Financial Officer on a form provided by the Chief Financial Officer regardless of whether the name change is a result of an acquisition, merger, or consolidation. Notification of such change must be made within 30 calendar days after the effective date of the change.(7) The Chief Financial Officer shall adopt rules establishing procedures for mergers, acquisitions, consolidations, and changes in name and address, providing forms, and clarifying terms.