(a) Only depositories which have met the qualifications imposed by this Code section may use a pooled method. If a depository elects a pooled method, it shall notify the state treasurer in writing of its desire to utilize a pooled method and the proposed effective date thereof and provide to the state treasurer executed copies of the custodial agreement, resolution, and other agreements and data as may be required by the state treasurer. Upon meeting the qualifications of this Code section, the state treasurer shall issue a certificate of qualification, and such bank or trust company shall become a depository permitted to use a pooled method.

(b) The aggregate of the market value of the securities pledged to secure a pool of public funds under the single bank pooled method shall be not less than 110 percent of the daily pool balance. The aggregate of the market value of the securities pledged to secure a pool of public funds under the multibank pooled method shall be not less than the percent established by the State Depository Board for the multibank pooled method provided for in paragraph (2) of subsection (c) of Code Section 45-8-13, which shall be neither less than 25 percent nor greater than 125 percent. Notwithstanding these parameters for the multibank pool, the aggregate market value of securities pledged shall be not less than 100 percent for amounts greater than 20 percent of the total daily pool balance held by any one covered depository. The State Depository Board, upon the recommendation of the state treasurer, in consultation with the commissioner, shall have the authority to increase the percent collateralization of any covered depository to a maximum of 125 percent at any time as economic conditions warrant.

(c)

(1) A depository may not retain any deposit of public funds which is required to be secured unless, within ten days thereafter or such shorter period as has been agreed upon by the depository and the state treasurer, it has deposited for the benefit of the pool eligible collateral equal to its required collateral pursuant to this Code section.

(2) For reporting purposes, each depository using a pooled method shall determine the market value of its collateral. Each depository shall provide such monthly reports to the state treasurer as the state treasurer shall require.

(3) A depository may not substitute or withdraw collateral previously pledged as part of a pool without the prior approval of the state treasurer. The state treasurer shall grant such approval if:

(A) In the case of substitution of collateral, the market value of the substituted collateral is equal to or greater than the market value of the collateral withdrawn; and

(B) In the case of withdrawal of collateral:

(i) The depository certifies in writing that such withdrawal will not reduce its collateral below its required collateral; and

(ii) This certification is substantiated by a statement of the depository's current daily pool balance that indicates that after withdrawal such deposits will continue to be secured to the full extent required by law.

(d) The state treasurer shall be authorized to delegate to any bank, savings association, trust company, or other qualified firm, corporation, or association which is authorized to transact business in the State of Georgia such of its rights and responsibilities with respect to a pooled method as the state treasurer deems appropriate including, without limitation, the right to approve or disapprove any substitutions or withdrawals permitted under this Code section. Fees and expenses of the bank, savings association, trust company, or other qualified firm, corporation, or association to which the state treasurer delegates his or her rights and responsibilities under this subsection shall be paid by the depositories using a pooled method.

(e) The state treasurer, upon a default by a depository using a pooled method, shall request immediate delivery of such part of the pooled, pledged collateral as may be needed to hold the state treasurer or any public body depositor harmless from losses incurred by the default. The state treasurer shall have full discretion as to the amounts and securities to be delivered. The state treasurer shall sell as much of the collateral as is needed to provide cash to cover the amount of the default and expenses resulting therefrom. From the proceeds of the sale of such collateral, the state treasurer shall pay any amounts owing to public body depositors who participated in the pooled fund of the defaulting depository. Public body depositors whose deposits are secured by a single bank pool of a defaulting depository shall look solely to the assets of such pool and to the assets of the defaulting depository and shall have no claim, ex contractu or otherwise, against the state, other depositories, or the assets of pools created by other depositories. Public body depositors whose deposits are secured in a multibank pool of a defaulting covered depository shall look to the assets of the defaulting covered depository. If such assets are insufficient to cover amounts owing to public body depositors, the state treasurer shall assess all covered depositories, except the defaulting covered depository, on a pro rata basis based upon a covered depository's percentage remaining share of the deposit of the public body; and a public body depositor shall have no claim, ex contractu or otherwise, against the state, depositories outside the multibank pool, or the assets of pools in a defaulting depository created outside the multibank pool. The failure of a covered depository to satisfy an assessment from the state treasurer in a timely manner shall be an event of default.

(f) In addition to all of the rights provided to the state treasurer in this chapter, the state treasurer shall have the following powers:

(1) To adopt such rules and prescribe such forms as may be necessary to accomplish the purposes of this chapter;

(2) To decline, accept, or reduce the reported value of collateral, as circumstances may require, in order to ensure the pledging of sufficient marketable collateral to meet the purposes of this chapter;

(3) To suspend or disqualify any custodian or depository that has violated any provision of this chapter or any rule adopted pursuant to this chapter;

(4) To require depositories to furnish detailed monthly reports of deposits from public bodies held by the depository, including depositor names and addresses, deposit amounts, and any additional information requested by the state treasurer;

(5) To confirm deposits of funds by a public body to the extent possible under current law; and

(6) To monitor and confirm, as often as deemed necessary by the state treasurer, the pledged collateral held by third-party custodians.

(g) Neither the provisions of this chapter nor the exercise of any right or duty by the state treasurer or the commissioner authorized or permitted by Code Section 45-8-13 or this Code section shall be construed as a waiver of sovereign immunity.

(h) Pursuant to Code Section 50-17-53 and the other powers of the State Depository Board, the State Depository Board may establish policies and procedures related to the operation of a multibank pool, including, but not limited to, defining eligible collateral, establishing collateral limits, adopting the schedule of fees charged to covered depositories, establishing a formula to calculate different collateralization tiers, and reporting requirements.