The government is moving to amend deposit requirements so that ASG funds can be kept in the Territorial Bank of American Samoa (TBAS), even without the bank being covered by the Federal Deposit Insurance Corporation (FDIC).
Current law requires that without any exception all government funds and deposits, including those earned or received by semi-autonomous agencies of ASG, be deposited and maintained at TBAS.
However, the federal government requires that certain award funds received by ASG and semi-autonomous agencies must be deposited in accounts insured by the FDIC.
The preamble of the bill states that the FDIC has indicated, that under its statutory and regulatory rules, it cannot insure the accounts of TBAS.
Therefore, ASG is unable to comply with the federal and local rules without amending the current statute.
To this end, the proposed bill amends the wording of the law to state that “…unless otherwise specifically prohibited by federal statute or regulation, or as directed by order of the courts of this or any other state or territory of the United States, all government funds and deposits, including those earned by semi-autonomous agencies of ASG, including the American Samoa Power Authority, American Samoa Telecommunications Authority, American Samoa Community College, Medical Center Authority, Shipyard Authority, American Samoa Visitors Bureau, American Samoa Government Employees Retirement Fund and the Feleti Barstow Public Library, shall be deposited with and maintained at the Bank. All revenues earned by the Bank on such deposits shall be credited to and become a part of the income of the Bank.”
