Section 208-512-030. Definitions and characterization of time deposits.

The term "time deposits" means "time certificates of deposit" and, "time deposits, open account," as defined below.

(1) Time certificates of deposit. The term "time certificate of deposit" means a deposit evidenced by a negotiable or nonnegotiable instrument which provides on its face that the amount of such deposit is payable:

(a) On a certain date, specified in the instrument, not less than thirty days after the date of the deposit; or

(b) At the expiration of a specified period not less than thirty days after the date of the instrument; or

(c) Upon written notice to be given not less than thirty days before the date of repayment.

(2) Time deposits, open account. The term "time deposit, open account," means a deposit, other than a "time certificate of deposit," with respect to which there is in force a written contract with the depositor that neither the whole nor any part of such deposit may be withdrawn, by check or otherwise, prior to the date of maturity, which shall be not less than thirty days after the date of the deposit, or prior to the expiration of the period of notice which must be given by the depositor in writing not less than thirty days in advance of withdrawals.

A time deposit is a deposit and therefore not subject to individual bank and trust company lending limits, as proscribed by RCW 30.04.110. However, before a bank or trust company may deposit its funds with another bank in the form of a time deposit, the depository bank must first be appointed a depository by a vote of a majority of the directors of the depositing bank and approved as a depository by the director of the department of financial institutions.

If a bank acquires a time deposit with a bank that has not been approved as a depository by the director of the department of financial institutions, such transaction shall be considered to be an investment and subject to the bank's lending limitation.

[Statutory Authority: RCW 30.04.030 and 43.320.040. WSR 00-17-141, amended and recodified as § 208-512-030, filed 8/22/00, effective 9/22/00; Order 2, § 50-12-030, filed 12/23/68.]

RCW 30.04.030 and 43.320.040. WSR 00-17-141, amended and recodified as § 208-512-030, filed 8/22/00, effective 9/22/00; Order 2, § 50-12-030, filed 12/23/68.