Collateral Management Section
The State Treasurer’s Office, Collateral Management Section (CMS) is comprised of two units: Pledged Collateral and Safekeeping and Vault Services.
The following are the detailed functions of each unit:
Pledged Collateral Unit
The Pledged Collateral Unit administers the clearance and settlement of securities pledged as collateral by California financial institutions to the State for the Time, Demand, and State Agency programs. The Unit is responsible for completing a monthly market valuation; calculating the collateral requirement; ensuring sufficient collateral levels are maintained for each participating financial institution; assuring all collected funds on deposit are collateralized in accordance with Sections 16520 through 16533 of the Government Code; maintaining accurate financial records; and ensuring security accountability.
Safekeeping and Vault Services Unit
The Safekeeping and Vault Services Unit administers the safekeeping of items in the State Treasurer's Office (STO) Vault. The Unit safe-keeps items that belong to and are received from various state agencies/departments such as sealed boxes, sealed envelopes and common stock shares. This Unit is also responsible for maintaining accurate financial records; ensuring security accountability for all items and securities pledged-to or owned-by the State of California held in the STO Vault; providing custody and protection of securities and items inside the vault as well as the physical security of the vault; and performing STO courier duties to deliver and collect financial documents required for day-to-day operation of the State’s Centralized Treasury System.