West Virginia CD Program Rules and Instructions

The West Virginia Board of Treasury Investments (BTI) offers West Virginia financial institutions that are approved State Depositories the opportunity to invest state funds via certificates of deposit (CD).  The BTI has authorized $200 million to be made available for placement through its West Virginia CD Program (CDP).  The procedures for CD placements are subject to the following Rules.

Approved State Depository

To participate in the CDP, a financial institution must:

  • Be an approved State Depository
  • Have a branch be located in West Virginia

For more information on the process for becoming an approved State Depository, see the guidelines and application at www.wvsto.com

Registration

Potential bidders must register for the CDP by 3:00 p.m. Eastern Time at least two (2) business days prior to the auction date. To register, bidders should go to the BTI’s website, download the West Virginia CD Program Application form and return the completed form to the BTI.  The form may be sent via mail, fax or e-mail.  The contact information is:


WV Board of Treasury Investments
Attn: Director of Operations
1900 Kanawha Boulevard East
Building 1, Room E-122
Charleston, WV 25305
Phone:  (304) 340-1561
Fax: (304) 341-7095
E-mail: wvcdprogram@wvbti.org

Prospective bidders will receive confirmation of receipt of registration and approval to participate in placements. Bidders will also receive a user name and password to bid on CD’s.  Registration is only required initially and not for each placement. If there are any updates or changes to contact information, the financial institution must submit a revised Application form to the BTI at least two (2) days prior to a bid date.

Schedules

Schedules for bidding and placements will be posted on the BTI’s website at www.wvbti.org/CDAuction.  For all placements, the settlement date for the funding will occur on the first business day following the bid date. Approved financial institutions will receive an e-mail seven (7) calendar days prior to the bid date indicating the date and time of the bid as well as the CD term that will be considered for the placement.  Two (2) business days prior to the bid date, the financial institutions will be sent an e-mail with the CD term and minimum rate. 

Bidding

Interested bidders must log on to the BTI’s website at www.wvbti.org/CDAuction/Bidform and input their user name and password.  Bids must be submitted via the online Bid Form by the bid deadline specified, which will be between 10:00 a.m. and 10:30 a.m. Eastern Time on the bid date. Bids are evaluated on the following criteria:  bid rate and time of submission.  If the total face amount of bids received is greater than the amount offered, bids will be ranked first by rate and next by time of submission.  In the event that two qualifying bids are tied, and there is only enough available in the auction to satisfy all or a part of one of those bids, the bid that was submitted earliest will prevail, up to the dollar amount available. Winning bids will be confirmed with the financial institutions by BTI staff via phone or e-mail within one hour after close of bidding.  After confirmation is made, an e-mail verification of the winning bid and wiring instructions will be sent to the primary and secondary contacts of the winning bidders.  The placement results will be posted on the website after all bids have been verified.

Bid Requirements

  • The minimum bid is $100,000.00. Bids must be in increments of $100,000.00 to a maximum of $10,000,000.00 per parent institution per placement.
  • The minimum rate will be equivalent to the six month return on the West Virginia Money Market Pool or other rate as approved by the BTI Chairman.  The rate will be included in notifications of upcoming placements and displayed on the BTI’s website prior to the bid  date . Bids below the minimum rate will not be accepted.
  • Each WV CD Program Bid Form permits a financial institution the opportunity to submit up to five bids.  However, only one bidder per financial institution may participate and the total of the five bids may not exceed $10,000,000.00 per parent institution per placement.
  • Bids will be evaluated and ranked by the highest rate and the time of receipt.  Should there be a tie, the earliest bid will prevail.
  • Bids will be evaluated “real time” to determine if they are winning bids.  Once bids have been submitted by the financial institution, the bids will be outlined in a color indicating their status.  Green represents winning the full bid amount.  Yellow represents winning a partial bid amount.  Red represents a losing bid.  See detailed instructions on the bid form (bottom of page).
  • The color outlining the bids may change as the auction progresses, depending on whether the bids are winning, partially winning or losing.
  • Bidders can revise bids throughout the auction.
  • Winning bids will be confirmed via telephone or e-mail within one hour of close of bidding.
  • Settlement date is the first business day after the bid auction date and will be displayed on the BTI’s website.
  • The maturity date for a given placement will be included in the placement notification and displayed on the BTI’s website.

Collateral Requirements

In accordance with West Virginia Code §12-1-5, state deposits in excess of Federal Deposit Insurance Corporation (FDIC) insurance coverage are required to be collateralized.  The amount of state funds on deposit in any depository in excess of the amount insured by an agency of the federal government shall be secured by a deposit guaranty bond issued by a valid bankers surety company or by other securities acceptable to the treasurer in an amount of at least one hundred two percent of the amount on deposit. The value of the collateral is determined by the West Virginia State Treasurer’s Office (“STO”) based on market prices provided by the STO’s safekeeping agent.  The STO is the final determining authority of the market value of pledged collateral.

The following items are acceptable forms of collateral to pledge for deposits held for the BTI:

  • Bonds of the United States,
  • Bonds of the Federal Land Banks,
  • Bonds of Federal Home Loan Banks,
  • Bonds of the State of West Virginia,
  • Bonds of any county, district or municipality of the State of West Virginia rated not less than AA or its equivalent by a nationally recognized investment rating firm, 
  • Federal Home Loan letters of credit, or
  • Other Bonds or Securities approved by the State Treasurer.

Collateral guidelines and submission procedures can be found at: www.wvsto.com

CD Requirements

  • Interest on a CD will be calculated on a 365 per diem basis using the actual number of days ((principal amount times the rate) divided by 365 and multiplied by the actual number of days).
  • Interest is payable at maturity.
  • CDs will be book-entry in the name of the BTI.
  • Transactions will be completed by wire transfer, which will include principal and interest collections. The wiring instructions will be included on a maturity notice issued by the BTI.

Additional Conditions

  • The BTI reserves the right to reject any bid, in whole or in part, for any reason in its sole discretion. The BTI also reserves the right to award a portion of a bid subject to the minimum and multiple amounts described above.
  • As a condition of participating in the CDP, each bidder will be required to acknowledge their understanding and acceptance of the CDP guidelines when they sign up for the placement.  Interested bidders will be provided any amendments to the CDP and must acknowledge their understanding and acceptance of the amendments to continue to participate in the CDP.
  • Interested bidders understand that in submitting a bid, the bidder has made a formal offer.
  • A bidder submitting a winning bid is irrevocably obligated to provide and honor the CD at the specified rate, amount and maturity, if acceptable to the BTI, as herein set forth. The bidder understands that an award has not been made until the bidder has been notified by the BTI via e-mail that an award has been made.
  • The CDP may be discontinued at any time by the BTI or the West Virginia Legislature.
  • The BTI shall not be liable or responsible for any costs incurred by bidders.
  • Bidders shall not use subcontractors without the express written consent of the BTI.
  • The laws of the State of West Virginia shall govern all rights and duties under the CDP and any action brought by either party in connection with the CDP shall be filed in the Circuit Court of Kanawha County, West Virginia.

Disclaimer

The BTI is not responsible for technical difficulties or other problems or issues that result in the failure of a bid being timely received by the BTI.

Acceptance of Rules

Bidder must accept and agree to abide by all terms and conditions specified in the BTI CD Program Rules and subsequent amendments thereto.

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Copyright 2017 by West Virginia Board of Treasury Investments