Colorado Division of Banking · CO
Notice of TC17 Rulemaking plus Basis & Purpose Document
Summary
The Colorado State Banking Board proposes amending Rule TC17 to establish clear authority for custodian approval, safekeeping agreements, and pledging procedures for non-depository trust companies. The rule aims to protect the Division from liquidation expenses and ensure the integrity of pledged securities.
March 19, 2026
BEFORE THE COLORADO STATE BANKING BOARD
IN THE MATTER OF ) ) NOTICE OF PROPOSED RULEMAKING RULE AMENDMENT and REPEAL )
I. Notice of hearing
PLEASE BE ADVISED THAT, as required by Section 24-4-103, C.R.S., of the State Administrative Procedures Act, the Colorado State Banking Board (Banking Board) hereby gives notice of proposed rulemaking. A virtual and in-person hearing is scheduled for May 21, 2026, commencing at 10:00 a.m. at 1560 Broadway, Room 100D, Denver, Colorado, 80202. The virtual hearing is available via the Zoom link: https://us06web.zoom.us/j/88564201821
II. Purpose of the proposed rulemaking
The purpose of this rulemaking is to amend 3 CCR 701-6 TC17 to promote the integrity of pledged securities by Non-depository trust companies.
A Statement of Basis, Purpose, and Specific Statutory Authority for each rule follows this notice and is incorporated by reference.
III. Statutory authority for proposed rulemaking
The proposed promulgation, amendments, and repeals of the rules are being held under the authority given the Banking Board by the Colorado Banking Code in accordance with Section 11-102-104(1), C.R.S., which states “the banking board is the policy-making and rule-making authority for the division of banking and has the power to: (a) make, modify, reverse, and vacate rules for the proper enforcement and administration of this code…”
IV. Opportunity to testify and submit written comments
Any interested person(s) has the right to submit written comments or data, view, or argument. Written information should be filed with the Division no later than May 11, 2026. To submit written comments, please contact Charles Siler, Banking Board Administrator, at dora_applications@state.co.us. In addition, any interested person(s) has the right to make a virtual presentation at the Hearing, unless the Banking Board deems any oral presentation unnecessary.
March 19, 2026
STATE BANKING BOARD 3 CCR 701-6 PERTAINING TO TITLE 11, ARTICLE 102, SECTION 104 COLORADO REVISED STATUTES
STATEMENT OF BASIS, PURPOSE AND SPECIFIC STATUTORY AUTHORITY
Statutory Basis
The statutory basis for Banking Board Rule 3 CCR 701-6 TC17 is found in Section 11-102-104 of the Colorado Revised Statutes.
Purpose of this Rulemaking
The purpose of this Rule is to protect the Division of Banking (Division) against any expense it may incur in liquidating a Non-depository trust company when the assets of such trust company available to the Division of Banking for this purpose are insufficient.
The purpose of this rulemaking is to amend 3 CCR 701-6 TC17 to promote the integrity of pledged securities by Non-depository trust companies.
The Division finds the amendment of this rule necessary to provide the Division with clear authority to:
- Establish a Custodian approval and revocation process
- Establish a safekeeping agreement, and
- Establish pledging and releasing procedures
- Require Non-depository trust companies and Custodians to comply with Rule and procedural requirements of the Division
Rulemaking Authority
11-101-102. Declaration of policy. 11-102-104. Powers and duties of the banking board.
Source: https://banking.colorado.gov/sites/banking/files/Combined_Notice_and_Statement_TC17.pdf
Common questions
- What does "Notice of TC17 Rulemaking plus Basis & Purpose Document" cover?
- The Colorado State Banking Board proposes amending Rule TC17 to establish clear authority for custodian approval, safekeeping agreements, and pledging…
- Which agency issued this update?
- This update was issued by Colorado Division of Banking.