GUARANTY DEPOSITS - 19410

(Revised: 09/2023)


Agencies/Departments may hold guaranty
and/or performance deposits, consisting of securities or cash, to ensure compliance with various legal requirements.

The State Treasurer’s Office holds negotiable securities for safekeeping. Negotiable securities are defined as any security that can be legally transferred to another party by endorsement or delivery. This includes any security that can be converted to cash by presentation or endorsement (e.g., bearer bonds and stocks).


Agencies/Departments may have different valuation procedures for securities
held as guaranty deposits due to the differences in statutory and operating requirements, and account for the securities as follows:

Debit/ Credit

Account

Legacy Account

Account Description

Debit

1902000

2720

Securities and Other Property Held in Trust

Credit

2060000

3510

Deposits


Agencies/Departments shall deposit cash in the centralized State Treasury System, in accordance with applicable legal or administrative provisions, and account for these deposits as follows:

Debit/ Credit

Account

Legacy Account

Account Description

Debit

1101400

1120

Agency Trust Fund Cash

Credit

2060000

3510

Deposits


For a definition of cash, see SAM Section 8000.

Agencies/Departments shall maintain cash received in lieu of a bond and subject to the provisions of Code of Civil Procedure section 995.710 in an interest-bearing account. Agencies/Departments shall request an account in the Special Deposit Fund to comply with this requirement. For a description of Special Deposit Fund Accounts, see SAM Section 18420.

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