HB454 Alabama 2015 Session

Summary

Primary Sponsor

Randy Davis

Republican

Session

Regular Session 2015

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

HB454 updates the SAFE Act by changing how key terms are defined, including adding the National Credit Union Share Insurance Fund to deposit insurance definitions.

What This Bill Does

It rewrites Section 41-14A-2 to redefine terms used in the SAFE program, such as what counts as public deposits and who is a covered public entity or official. It explicitly includes the National Credit Union Share Insurance Fund as part of Deposit Insurance alongside the FDIC. It clarifies collateral requirements and levels, including the generally applicable pledging level (not less than 70%) and the concept of a SAFE collateral pool. It also sets governance details and the effective date for the act.

Who It Affects

• Covered public entities and covered public officials in Alabama who handle or oversee public deposits (their deposit definitions and responsibilities are updated).
• Qualified public depositories and custodians (banks, credit unions, and trust companies) that hold or pledge collateral for public deposits.
• The SAFE Program’s Board of Directors, State Treasurer, and other officials responsible for administering the program.

Key Provisions

• Amends Section 41-14A-2 to update definitions for terms like Average Monthly Balance of Public Deposits, Board of Directors, Collateral-Pledging Level, Covered Public Entity, Covered Public Official, Custodian, Deposit Insurance, Generally Applicable Pledging Level, Net Average Daily Balance of Public Deposits, and Qualified Public Depository.
• Deposit Insurance definition now explicitly includes both the Federal Deposit Insurance Corporation and the National Credit Union Share Insurance Fund (and their successors).
• Defines the Board of Directors as eight members and clarifies collateral-pledging requirements, including the generally applicable pledging level of at least 70% of net average daily balance.
• Reiterates terms such as Covered Public Entity/Official, Custodian, Public Deposits, Qualified Public Depository, SAFE Collateral Pool, and related program structures.
• Establishes the act’s effective date as the first day of the third month after passage and governor 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