Florida Statutes 280.055 – Cease and desist order; corrective order; administrative penalty
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(1) The Chief Financial Officer may issue a cease and desist order and a corrective order upon determining that:
(a) A qualified public depository has requested and obtained a release of pledged collateral without approval of the Chief Financial Officer;
Terms Used In Florida Statutes 280.055
- 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
- Financial institution: means , including, but not limited to, an association, bank, brokerage firm, credit union, industrial savings bank, savings and loan association, trust company, or other type of financial institution organized under the laws of this state or any other state of the United States and doing business in this state or any other state, in the general nature of the business conducted by banks and savings associations. See Florida Statutes 280.02
- Pledged collateral: means securities or cash held separately and distinctly by an eligible custodian for the benefit of the Chief Financial Officer to be used as security for Florida public deposits. See Florida Statutes 280.02
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- 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- Trustee: A person or institution holding and administering property in trust.
(b) A bank, credit union, savings association, or other financial institution is holding public deposits without a certificate of qualification issued by the Chief Financial Officer;(c) A qualified public depository pledges, deposits, or arranges for the issuance of unacceptable collateral;(d) A custodian has released pledged collateral without approval of the Chief Financial Officer;(e) A qualified public depository or a custodian has not furnished to the Chief Financial Officer, when the Chief Financial Officer requested, a power of attorney or bond power or bond assignment form required by the bond agent or bond trustee for each issue of registered certificated securities pledged and registered in the name, or nominee name, of the qualified public depository or custodian;(f) A qualified public depository; a bank, credit union, savings association, or other financial institution; or a custodian has committed any other violation of this chapter or any rule adopted pursuant to this chapter that the Chief Financial Officer determines may be remedied by a cease and desist order or corrective order; or(g) A qualified public depository no longer meets the definition of a qualified public depository under s. 280.02.(2) Any qualified public depository or other bank, credit union, savings association, or financial institution or custodian that violates a cease and desist order or corrective order of the Chief Financial Officer is subject to an administrative penalty not exceeding $1,000 for each violation of the order. Each day the violation of the order continues constitutes a separate violation.