Contract Introduction

RCW 43.08.280 authorizes the Office of the State Treasurer (OST) to negotiate a statewide securities custody contract on behalf of local governments and institutions of higher education.  The most important benefit of this program is the opportunity for local governments, at their option, to obtain the best rate and terms from a single financial institution for custody services.

This contract will save significant time and money for local entities, who will no longer have to do their own custody search.  Financial institutions, by the same token, will need to participate in only one search process, rather than separate RFPs for each local entity.  The “pooling” feature of the program will allow smaller jurisdictions to earn the same advantageous rates and terms now available to larger local governments.

OST’s role has been to select the provider and negotiate a model contract.  However, OST will not be a party to the contracts – individual contracts for custody services will be between the Statewide Custody Provider and the local participants.

Treasurer Murphy has appointed the Union Bank of California as the new Statewide Custody Provider.  This will take effect on April 1, 2006 through March 31, 2010.

If you have questions regarding the statewide securities custody program or would like a copy of the fee schedule contact Doug Extine at (360) 902-9012 or doug@tre.wa.gov.

Click Here to View The Statewide Custody Memo

Click Here to View a copy of The Letter of Agreement for Statewide Custody Services

Click Here to View a copy of The Statewide Contract for Security Custody Services

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