HB315 Alabama 2012 Session

Summary

Primary Sponsor

Mike Ball

Republican

Session

Regular Session 2012

Title

Security for Alabama Funds Enhancement (SAFE) Act, qualified public depository, definition to include a National Credit Union Share Insurance Fund, Sec. 41-14A-2 am'd.

Summary

HB315 updates the SAFE Act by refining definitions used in the public-deposit program and explicitly including the National Credit Union Share Insurance Fund in deposit insurance.

What This Bill Does

It amends Section 41-14A-2 to redefine key terms such as average balances, collateral levels, and what counts as a covered public entity or official. It also clarifies that deposits are insured either by the FDIC or the NCUSIF and sets minimum collateral requirements and oversight structures for depositories. These changes affect how funds are categorized, insured, and secured in qualified public depositories.

Who It Affects

• Covered public entities and covered public officials: their deposits are governed by updated definitions for balances, collateral, and insurance, shaping how and where they place funds.
• Qualified public depositories and financial institutions (banks, savings associations, credit unions): must meet revised definitions, pledging requirements, and eligibility criteria to be designated as qualified depositories.

Key Provisions

• Explicitly includes the National Credit Union Share Insurance Fund in the definition of Deposit Insurance.
• Defines key terms such as Average Monthly Balance, Net Average Daily Balance, Generally Applicable Pledging Level, and Qualified Public Depository.
• Sets minimum collateral-pledging level at 70% of net average daily balance and authorizes the board to set other levels for collateral.
• Establishes and describes SAFE program structures and funds (Collateral Pool, Loss Payment Fund, Administration and Enforcement Funds) and the Board of Directors (eight members).
• Effective date: the act becomes law on the first day of the third month after passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Banks and Banking