BidMass is an innovative and efficient means for investing in certificates
of deposit. The program is designed to provide eligible Massachusetts
financial institutions with the opportunity to interactively compete for
Commonwealth of Massachusetts investment dollars every month.
Bids will be accepted on-line at www.BidMass.com. Beginning on December 12, 2006 BidMass auctions will be held on the second Tuesday of every month with funding two (2) business days following the auction. The auctions will begin at 10:30 a.m. and end at 11:00 a.m. The State Treasurer will make funds available for three (3) month or six (6) month certificates of deposit each month.
Registration and Entry to Auction
Treasury Bank Deposit Limits
- Bidders must register with BidMass. To register, bidders should go to the
BidMass web site. Upon registering, bidders will receive a BidMass password
and will be responsible for protecting the confidentiality of the
- Registered bidders must request and receive admission to an auction to
submit bids. The State Treasurer reserves the right to deny access to any
BidMass auction to any bidder, at any time and for any reason whatsoever, in
its sole discretion.
State statute limits the amount the Treasury may have on deposit at any one bank to
55% of that bank's consolidated net surplus. Through internal policy, the Treasury
has instituted a stricter deposit limit, and in order to reward banks that are active
in the community, has set the limit on a sliding scale based on Community Reinvestment
Act ratings. The following general limits have been set:
||25% of Tier One Capital
||15% of Tier One Capital + 150% of SBA loans
||$200,000 + 150% of SBA loans
These limits apply to all state deposits held by a bank, whether obtained through
BidMass or otherwise. In addition, each bank is limited to an amount between
$100,000 and $5 million per auction, depending largely on the capacity for
additional deposits determined by the above formula.
New Community Incentives in Deposit Limits
In order to further reward banks that are actively serving the community, and to
encourage banks with lower CRA ratings to do more, the following additional
incentives have been added that will allow all participating banks to increase their
deposit limits by up to 10% by meeting certain of the following conditions:
Service to Communities of color and Immigrant Populations (increase up to 5%)
Banks showing a commitment to service of minority communities may add up to 5% to their limits.
- A formal commitment to making 20% of all small business loans in
majority-minority census tracts or demonstration that at least 10% of actual
small business loans are being made in majority-minority census tracts.
- Minority ownership of over 35%, or minority and women representation of 35%
or more of directors or senior management, or status of bank as a Massachusetts
qualified SOMWBA business.
- Total minority employment over 50%.
- Diversity in awarding contracts, so that over 20% of outside vendor contracts are to
qualified businesses owned by people of color and based in Massachusetts.
- Availability of bilingual tellers at branches with significant minority or non-English
speaking populations, as well as availability of non-English brochures and account
information for major bank products.
- Commitment to offer low cost international money transfers.
- Policies for accepting alternative forms of identification (the Treasury can provide
sample policies consistent with the Patriot Act used by out of state banks).
- Support of bilingual financial education, ESL programs or bank branches in high schools
with large populations of color and immigrant students.
Additional CRA incentives (increase up to 5%)
The Treasury recognizes that CRA ratings judge only past performance. Using past performance
creates only remote incentives for improvement. Current community banking initiatives are much
more representative of the bank's impact in the community. Therefore, the Treasury will recognize
the following activities, if they have occurred in a fiscal year ending since the bank's last CRA
examination. These include:
- Having a formal Community Investment Agreement currently in effect.
- Having an operational state Community Advisory Council.
- A formal commitment to making 80% of all small business loans in amounts under $100,000,
or actual loans for under $100,000 representing 75% of all loans to small businesses.
- A formal commitment to making 20% of all small business loans in low to moderate income
(LMI) census tracts or demonstration that at least 10% of actual small business loans
are being made in LMI census tracts.
- Conversion of at least 30% of the Massachusetts Housing Partnership commitments to equity.
- Participation in the state's Soft Second mortgage program.
- Establishment of a below-market or otherwise subsidized small business loan program for
Massachusetts small businesses or for Massachusetts nonprofit housing developers.
- Establishment of individual development accounts (IDAs) at a Massachusetts branch of the
bank, or bank match contributions by the bank to IDAs of Massachusetts residents.
- Diversity in awarding contracts, so over 20% of outside vendor contracts are to qualified
- Increases of 15% or more over the prior fiscal year in charitable giving.
- Investment in Massachusetts through "new market tax credits", the state's low-income housing
tax credit or the state's historic tax credit.
- Offering checking and savings accounts that comply with the Massachusetts Community Banking
Council's standards for basic banking accounts.
- A "second-look program" for small business loans.
- Participation in the SBA Community Express Program.
- A formal commitment to making 80% of all small business loans to small businesses
with under $1m in GAR or demonstration that at least 10% of the actual small business
loans are being made to such businesses.
Certificate of Deposit Requirements
- The minimum bid is $100,000. Bids may increase in increments of
$100,000 to a maximum of $5,000,000 per institution - including all
branch offices, per auction.
- The minimum rate will be determined by the Treasurer's office and will be displayed on the auction home page prior to the auction. Bids below the minimum rate will not be accepted.
- Multiple bids from the same bidder are permissible. Each bidder may
make up to five bids, the total of which may not exceed $5,000,000 per
auction. There is no limit as to the number of times a bid may be
- Settlement date is the two (2) business days following the auction
and will be displayed on the auction page.
- Maturity date will be displayed on the auction page.
- Winning bidders will be assessed an annualized fee of .050% (.025% of the
principal amount of 6 month certificates of deposit awarded and .0125% of the
principal amount of 3 month certificates of deposit awarded). Such fee will be
payable to Grant Street Group by ACH debit two business days following the
auction. Completion of the ACH Debit Authorization on the Confirmation Page
represents winning bidders authorization for Grant Street Group to debit their
account. Failure to make timely payments of the Grant Street Group fee will
result in exclusion from subsequent auctions.
- If qualified bids submitted in the same auction by the same or different
bidders result in a tie, the first bid submitted prevails. Any change to
a bid constitutes a new bid.
- Winning bidders must confirm their award per the instructions on the
Confirmation Page immediately after the auction ends.
- Interest on the certificate of deposit will be calculated on an Actual/360 day basis.
- Certificates of deposit will be book-entry in the name of
Treasurer, Commonwealth of Massachusetts.
- Transactions will be completed by wire transfer. The State Treasurer's
wiring instructions will be provided in a maturity notice sent via email to the
financial institution prior to the maturity date of the certificates of deposit.
- Financial institutions agree to incur all transaction costs, including wire fees.
Certificates of deposit in excess of insurance coverage by the Federal Deposit Insurance Corporation (FDIC) must be collateralized with a perfected pledge of eligible collateral, as defined below, prior to funding of the certificates of deposit. Eligible collateral must be pledged in an amount equal to 102% of the amount of the certificate of deposit that exceeds the FDIC insurance.
- U.S. Treasury Bills
- U.S. Treasury Notes
- U.S. Treasury Bonds
- Federal National Mortgage Association (Fannie Mae) Notes and Bonds, senior obligations only
- Federal National Mortgage Association (Fannie Mae) mortgage backed securities
- Federal Home Loan Mortgage Corporation (Freddie Mac) Notes and Bonds, senior obligations only
- Federal Home Loan Mortgage Corporation (Freddie Mac) mortgage backed securities
- Federal Home Loan Bank (FHLB) Notes and Bonds, senior obligations only
- Federal Home Loan Bank (FHLB) Letter of Credit
- General Obligations of the Commonwealth of Massachusetts or its political subdivisions with an AA rating or higher.
- Government National Mortgage Association (Ginnie Mae) securities
A Collateral Agreement that is approved by the State Treasurer's Office must be (1) signed in multiple original counterpart copies by each financial institution and the State Treasurer's Office, (2) approved by the financial institution's board of directors, (3) filed and maintained in the official records of the financial institution, and (4) filed with the State Treasurer's Office. Sufficient collateral to cover total state deposits in excess of the FDIC insured amount must be pledged and held in safekeeping by a custodian that is approved by and under the control of the State Treasurer's Office no later than 11:00 AM EST on settlement date in order for a BidMass Time Deposit to be funded on that day.
If collateral requirements are not met by 11:00 AM EST on the settlement date, the Treasurer will not fund the BidMass Time Deposits until the above requirements are met (provided collateral is received by 11:00 AM EST) not to exceed two (2) business days following the settlement date. If the collateral has not been submitted within two (2) business days following the settlement date, the bid will be denied and will result in the exclusion from the BidMass auctions for a period of six months. Collateral received after 11:00 AM EST will be considered for the next business day's activity.
Fax collateral details to the State Treasurer's Office at 617.523.1068, Attention: Angelo DeBortoli. Forward the original records of the collateral to the following address:
Massachusetts State Treasury
Cash Management Department
ATTN: Angelo DeBortoli
One Ashburton Place, 12th Floor
Boston, MA 02108-1608
Please contact Angelo at 617.367.9333, extension 234, if questions arise regarding collateral requirements or if assistance is needed.
Membership by the financial institution in the Depositors Insurance Fund (DIF) or the Share Insurance Fund (SIF) will be accepted by the State Treasurer's Office as alternative security for the certificates of deposit, provided that the financial institution submits proof of membership in the DIF or the SIF, and coverage of the financial institution's certificate of deposit, to the State Treasurer's Office prior to 11:00 AM EST on the settlement date.
- Effective February 12, 2008, funds being returned to the Massachusetts State
Treasurer and Receiver General ("the Treasury") from a previous BidMass 3-month
Certificate of Deposit (CD) Auction must be wired to the designated bank before
12:00 noon on the date of maturity. In the event the Treasury does not receive
the funds by noon on the date of maturity an entire day's interest will be
assessed. The rate of interest will be calculated according to the rate that the
CD was originally awarded 3 months prior. Please note that if a bank continues
to make late returns denial of future access may be necessary.
- The State Treasurer reserves the right to reject any BidMass bid for any
reason at his discretion. The State Treasurer also reserves the right to
award a portion of a bank's bid subject to the minimum and multiple
amounts described above.
- Each bidder must acknowledge that he or she has read amendments to the
Guidelines in each auction and indicate their agreement with the amendment
electronically in order to enter the auction.
- Submitted bids must also be verified. The bidder understands that in
verifying the bid, the bidder has made a formal offer.
- Bids that generate error messages are not accepted until the error is
corrected and the bid is resubmitted. Error messages will indicate the reason
for the error such as in the instance in which the bidder has entered a
bid that is lower than the minimum bid requirement.
- The bidder understands that the submitted bid may initially be a leading
bid, but may be replaced by other more competitive bids throughout the
auction. Bidders will know immediately if their bid continues to be a
winning bid by updating their bids. A bid's status when "in the money"
may change at any given time due to new bids by other bidders. It is the
responsibility of the bidder to update his or her bid status. There is no
limit to the number of times a bid may be updated.
- A bidder submitting a winning bid is irrevocably obligated to provide
the certificate of deposit at the specified rate, amount and maturity, if
acceptable to the State Treasurer, as herein set forth. The bidder
understands that an award has not been made until posted on the Results
Page on the BidMass site. Discrepancies should be reported to Angelo DeBortoli
at the Investment Division of the Office of State Treasurer at 617-367-9333 x234
within 15 minutes of the posting of the Results Page.
- In the event of a web site failure, the auction will be attempted at the
top of every hour the day of the scheduled auction between the hours of
11:00 a.m. and 4:00 p.m. In the event that the auction is not completed
on the scheduled day, the next attempt will be 10:30 a.m. the next
business day. The State Treasurer will inform registered bidders of a
change in the bidding format via phone, fax, or e-mail.
Acceptance of Guidelines
- The Grant Street Group software, supplied by Grant Street Group, used in
connection with this web site serves only as a medium through which the
BidMass auctions are conducted. Grant Street Group is not liable or
responsible for the terms, rates, collateral or any other condition by
which financial institutions are awarded monthly deposits.
Grant Street Group is not responsible for any defect or inaccuracy in the
Guidelines as they appear on the BidMass web site.
- Neither the State Treasurer nor Grant Street Group is responsible for
technical difficulties that result in the loss of bidders' Internet
connection with BidMass, slowness in transmission of bids or other technical
problems. Neither the State Treasurer nor Grant Street Group is
responsible for individual computer failures. In the event of a computer
failure, bidders may contact James MacDonald at the State Treasurer's
Office at 617-367-9333 x570 for possible alternate bidding options.
- This web site is provided "as is" without warranty whatsoever.
Grant Street Group hereby disclaims any and all
warranties, including without limitation any implied warranties of
merchantability and/or fitness for a particular purpose.
- In no event will Grant Street Group be liable for
indirect, special, incidental, economic, cover, consequential, tort or
other damages (including without limitation damages or costs relating to
the loss of profits, business, goodwill, data or computer programs, even
if advised of the possibility of such damages), without regard to the
legal theory of such damages, arising out of the use of or inability to
use this web site.
- Bidder accepts and agrees to abide by all terms and conditions specified
in the Guidelines.
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Please direct questions and comments to Auction Administrator