Choosing a participating bank is strictly the choice of a local government official. However, when a participating bank is chosen, the local government official no longer has to maintain safekeeping receipts for all pledged collateral. Most importantly, the local government official no longer has to have the ability to monitor the daily market value of the collateral that is pledged to them. All of the work is done at the Treasury Department. All participating banks sign a contingent liability agreement guaranteeing that all public deposits in excess of FDIC insurance coverage are secured by the TN Bank Collateral Pool program.