(A) A financial institution may apply for a reduced collateral floor when they apply for OPCP or following its application to OPCP.

(1) A financial institution must submit an application for a reduced collateral floor to the treasurer of state.

(a) If the treasurer of state approves the application, it will set the reduced collateral floor in OPCS.

(b) If the treasurer of state does not approve the application, it will notify the financial institution.

(2) If the public unit negotiated collateral requirement is higher than the reduced collateral floor, the public unit negotiated collateral requirement will take precedence.

(B) In addition to the criteria listed herein, an eligible financial institution must abide by rule 113-40-02 of the Administrative Code and this rule in order to meet the safety and soundness standards of a public depository in accordance with division (B)(1)(b) of section 135.182 of the Revised Code.

(C) Notwithstanding any additional collateral requirements as further detailed herein, a financial institution approved for a reduced collateral floor shall initially be required to secure all uninsured public deposits at least equal to fifty percent.

(D) A financial institution approved for a reduced collateral floor shall not be able to use the reduced collateral floor until it has participated in OPCP for at least thirty calendar days.