§ 13-12-118 — Surety bond; pledged investments; investment income; bond or pledge increases; hearings

Wyoming § 13-12-118

• Jurisdiction: Wyoming
• Title 13: Banks, Banking and Finance
• Ch. 12: SPECIAL PURPOSE DEPOSITORY INSTITUTIONS

Text

(a) Except as otherwise provided by subsection (b) of this
section, a special purpose depository institution shall, before
transacting any business, pledge or furnish a surety bond to the
commissioner to cover costs likely to be incurred by the
commissioner in a liquidation or conservatorship of the special
purpose depository institution. The amount of the surety bond or
pledge of assets under subsection (b) of this section shall be
determined by the commissioner in an amount sufficient to defray
the costs of a liquidation or conservatorship.
(b) In lieu of a bond, a special purpose depository
institution may irrevocably pledge specified assets equivalent
to a bond under subsection (a) of this section. All costs
associated with pledging and holding the assets are the
responsibility of the special purpose depository institution.
Pledged assets shall be unencumbered and shall not serve as
collateral for any other purpose.
(c) Assets pledged to the commissioner shall be of the
same nature and quality as those required for state financial
institutions under W.S. 9-4-805.
(d) Surety bonds shall run to the state of Wyoming, and
shall be approved under the terms and conditions required under
W.S. 9-4-804(b) and (c).
(e) The commissioner may adopt rules to establish
additional investment guidelines or investment options for
purposes of the pledge or surety bond required by this section.
(f) In the event of a liquidation or conservatorship of a
special purpose depository institution pursuant to W.S. 13-12-
122, the commissioner may, without regard to priorities,
preferences or adverse claims, reduce the surety bond or assets
pledged under this section to cash as soon as practicable and
utilize the cash to defray the costs associated with the
liquidation or conservatorship.
(g) Income from assets pledged under subsection (b) of
this section shall be paid to the special purpose depository
institution, unless a liquidation or conservatorship takes
place.
(h) Upon evidence that the current surety bond or pledged
assets are insufficient, the commissioner may require a special
purpose depository institution to increase its surety bond or
pledged assets by providing not less than thirty (30) days
written notice to the institution. The special purpose
depository institution may request a hearing before the board
not more than thirty (30) days after receiving written notice
from the commissioner under this subsection. Any hearing before
the board shall be held pursuant to the Wyoming Administrative
Procedure Act.