Information for local governments on how to obtain the best rate and terms from a single financial institution for custody services
Contract Introduction
The Office of the State Treasurer (OST) is authorized to negotiate a statewide securities custody contract on behalf of local governments and institutions of higher education (RCW 43.08.280). The most important benefit of this voluntary program is the opportunity for local governments to obtain the best rate and terms from a single financial institution for custody services.
The Statewide Custody contract saves significant time and money for participating local entities that no longer have to do their own custody search. In the same manner, financial institutions are able to participate in one search process rather than separate RFPs for each participating local entity. The “pooling” feature of the program allows smaller jurisdictions to earn the same advantageous rates and terms as are available to larger local governments. Currently there are 26 participants with assets of $11.8 billion.
OST selects the custody provider and negotiates a model contract. However, OST is not a party to the contracts; individual contracts for custody services are between the Statewide Custody Provider and each local participant.
For program details, contact Jon Cannon, Senior Relationship Manager, Principal Bank, (515) 878-6066, or by email cannon.jonathan@principal.com
For questions regarding the statewide securities custody program or a copy of the fee schedule, contact Shawn Reed at (360) 902-9014 or shawn.reed@tre.wa.gov