Bank in Vermont Guidelines and Instructions

Bank in Vermont is designed to provide pre-qualified Vermont financial institutions with the opportunity for state investment dollars every month. The program is designed to be attractive to the wide range of banking institutions in Vermont, and is predicated on the belief that investing Vermont funds in Vermont, consistent with earning a competitive rate of return, is a good policy.

The Vermont State Treasurer will set aside a block of funds for the scheduled bid in specified time frames based on the State's cash flow projections and the yield curve at the time of the bid. Some of the funds may be "short," generally 30, 60, 90, 120-day periods. Depending on the interest rate environment, a portion of these funds may be put in one to three-year certificates of deposit. Over time, a "laddered" CD portfolio would be developed. Bids will be solicited through the Internet and e-mail.

Bids will be accepted the first Wednesday of each month for funding on the next business day. The offer will begin at 3:00 PM on preceding Tuesday and end at 11:00 AM on Wednesday. All bids via e-mail or fax must be here no later than 11:00 AM. The Vermont State Treasurer's Office will not be responsible if your e-mail or fax doesn't reach us by 11:00 AM.

The Office of the State Treasurer reserves the right to establish a minimum interest rate quote, and not award all or part of the funds if the minimum rate is not bid.

Instructions

  1. Bidders must pre-qualify for acceptance through the Bank in Vermont bidding program. Interested bidders should go to the Bank in Vermont Web site to obtain a copy of the RFP, which must be completed and submitted to the Vermont State Treasurer's Office. Upon qualification, bidders will receive a Bank in Vermont acceptance notification.
  2. The State Treasurer reserves the right to deny bids to any Bank in Vermont offering, at the time and for any reason whatsoever, in its sole and absolute discretion.
  3. The minimum bid is $100,000.00. Bids may increase in increments of $50,000.00 to a maximum ceiling set for the bank minus any current CDs purchased by the State Treasurer's Office. This ceiling is established for the bank as a whole, including any CDs in other State Treasurer's Office CDs programs per bank, including all branch offices.
  4. Each bidder may submit up to three (3) bids, the total of which may not exceed the banking institution's maximum ceiling minus current CDs purchased by the Office of the State Treasurer. The total applies to the sum of all bids for each maturity period. For instance, if a qualifying bank wished to place bids for up to $500,000, the institution could submit three separate bids at varying rates up to that total.
  5. The State Treasurer's office will provide fed wire instructions to banks once they are pre-qualified. All transactions will be completed by fed wire.
  6. Interest on the certificate of deposit will be calculated on a 360-day basic using the actual number of days, payable upon maturity. Bids below minimum are established by the State Treasurer's Office prior to the bid process will not be accepted.
  7. Settlement date is the day following the bidding and will be displayed on the Bidding Results Page.
  8. Winning bidders must confirm their award upon notification. This will be completed by e-mail.

Certificate of Deposit Requirements

  1. Interest on the certificate of deposit will be calculated on a 360-day per diem basis using the actual number of days, using a formula of principal amount times the rate divided by 360 multiplied by the actual number of days.
  2. Transactions will be completed by wire transfer. The Vermont State Treasurer's Office's wiring instructions will be forwarded to pre-qualified banks.
  3. Bids below the minimum rate established by the Office of the State Treasurer prior to the bid process will not be accepted.
  4. Collateral, if required, would be delivered to a third-party bank designated by the Office of the State Treasurer. Acceptable collateral will be defined in the "Pre-qualification Agreement."

Additional Conditions

  1. The Treasurer reserves the right to reject a bid from any bank for any reason, at his discretion. The Treasurer also reserves the right to award a portion of a bank's bid subject to the minimum and multiple amounts investment ceiling.
  2. The bidder understands that in verifying the bid, the bidder has made a formal offer.
  3. A bidder submitting a winning bid is irrevocably obligated to provide the certificate of deposit at the specified rate, amount, and maturity date, if acceptable to the Treasury, as set forth. The bidder understands that the Office of the State Treasurer has not made an award until receipt of confirmation.
  4. Discrepancies should be reported to the Bid Administrator at 802-828-2301 within 15 minutes of the receipt of confirmation.
  5. The banking institution will notify the Office of the State Treasurer immediately, by e-mail, in the event of a material adverse change in its financial condition.
  6. The banking institution pledges to exercise due diligence in informing the State Treasurer's Office of all foreseeable risks associated with any financial transactions that the institution conducts with the State of Vermont.
  7. The banking institution and key professionals do not anticipate a potential conflict interest with the State Treasurer's Office.
  8. The banking institution is in compliance with the State of Vermont's Unclaimed Property Act 27 V.S.A. Chapter 13.
  9. The banking institution is in good standing with respect to, or in full compliance with, a plan to pay any and all taxes due the State of Vermont.

Contact Us

Office of the State Treasurer
109 State Street
Montpelier, Vermont 05609
Main Phone: (802) 828-2301
Toll Free: (800) 642-3191

PUBLIC INFORMATION REQUESTS TO:

Ashlynn Doyon at treasurers.office@vermont.gov

Click Here - For Public Records Database

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