SECTION 4.106. Voluntary Withdrawal from the Pooled Collateral Program

(a) An approved depository institution or public entity may withdraw from the pooled collateral program by providing written notice to the comptroller and the other named party to its collateral security agreement(s) (either the depository institution or public entity). The depository institution must provide notice in writing at least 90 days before the effective date of withdrawal. The public entity must provide reasonable written notice of withdrawal from the program as soon as practicable.

(b) As part of the withdrawal process a participating depository institution must:

(1) maintain the required amount of acceptable collateral in the pooled collateral program until the effective date of withdrawal;

(2) continue to provide the required reports detailing required information through the effective date of withdrawal;

(3) continue to comply with the terms of collateral security agreements through the effective date of withdrawal; and

(4) provide written notice to the comptroller that it has taken all appropriate steps to provide for the orderly transition of public entity deposits.

Source Note: The provisions of this §4.106 adopted to be effective October 19, 2010, 35 TexReg 9345