GUARANTY DEPOSITS - 19410

(Revised: 09/2023)

Agencies/Departments may hold guaranty and/or performance deposits, consisting of securities or cash, to ensure compliance with various legal requirements.

The State Treasurer’s Office holds negotiable securities for safekeeping. Negotiable securities are defined as any security that can be legally transferred to another party by endorsement or delivery. This includes any security that can be converted to cash by presentation or endorsement (e.g., bearer bonds and stocks).

Agencies/Departments may have different valuation procedures for securities held as guaranty deposits due to the differences in statutory and operating requirements, and account for the securities as follows:

Debit/ Credit	Account	Legacy Account	Account Description
Debit	1902000	2720	Securities and Other Property Held in Trust
Credit	2060000	3510	Deposits

Agencies/Departments shall deposit cash in the centralized State Treasury System, in accordance with applicable legal or administrative provisions, and account for these deposits as follows:

Debit/ Credit	Account	Legacy Account	Account Description
Debit	1101400	1120	Agency Trust Fund Cash
Credit	2060000	3510	Deposits

For a definition of cash, see SAM Section 8000.

Agencies/Departments shall maintain cash received in lieu of a bond and subject to the provisions of Code of Civil Procedure section 995.710 in an interest-bearing account. Agencies/Departments shall request an account in the Special Deposit Fund to comply with this requirement. For a description of Special Deposit Fund Accounts, see SAM Section 18420.