SB299 Alabama 2012 Session

Summary

Primary Sponsor

Bill Holtzclaw

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

SB299 updates the SAFE Act’s definitions to include the National Credit Union Share Insurance Fund and clarifies key terms for qualified public depositories and public deposits.

What This Bill Does

It adds NCUSIF as an eligible source of deposit insurance for public deposits and clarifies how balances and collateral are calculated and applied. It defines who counts as a covered public entity or official and who can act as a custodian or qualified public depository, and it sets collateral requirements including a minimum generally applicable pledging level. It also outlines the SAFE Program’s governance (an eight-member board) and the basic framework for how public deposits are secured and managed.

Who It Affects

• Covered public entities and covered public officials who handle and place public funds in qualified public depositories.
• Financial institutions (banks, savings associations, credit unions) that wish to be designated as qualified public depositories and must meet deposit insurance requirements (FDIC or NCUSIF) and collateral rules.

Key Provisions

• Amends Section 41-14A-2 to update and clarify definitions used in the SAFE Act.
• Deposits insurance definition now includes the National Credit Union Share Insurance Fund (NCUSIF) alongside the FDIC.
• Defines key terms such as average monthly balance, net average daily balance, collateral-pledging levels, and generally applicable pledging level (not less than 70%).
• Clarifies who is a covered public entity and a covered public official, and who may serve as a custodian.
• Specifies what constitutes a qualified public depository and the role of the SAFE Program’s eight-member Board of Directors.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Banks and Banking