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Bank in Vermont Guidelines and Instructions

Bank in Vermont is designed to provide pre-qualified Vermont banks with the opportunity for State investment dollars. 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" i.e. not less than four weeks and up to 52 weeks. 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 by e-mail.

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 obtain an 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 as established for the bank as a whole, including any CDs in other State Treasurer's Office CDs programs.
  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. Interest on the certificate of deposit will be calculated on a 365-day per diem basisĀ using the actual number of days, payable upon maturity. Bids below the minimum rate established by the State Treasurer's Office prior to the bid process will not be accepted.
  6. 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 365-day per diem basis using the actual number of days payable upon maturity.
  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 when required, will be in the form approved by the Office of the State Treasurer. Acceptable collateral will be defined in the "Pre-qualification Agreement."

Additional Conditions

  1. 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.
  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 TRE.BankInVermont@vermont.gov 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 18.
  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.