a) The program depository will be selected through the Treasurer's procurement process and must meet the following criteria:

1. 1) be authorized to conduct business in Illinois as an Illinois bank or a national bank with a presence in Illinois;
2. 2) be a member of the Federal Reserve System and have access to all services as a member bank;
3. 3) be an approved depository for public funds; and
4. 4) have required licenses, bonding, facilities, equipment, and trained personnel necessary to perform the duties as the program depository.

b) The program depository will be responsible for the loan guarantee account in which funds will be used to guarantee certain loans made by participating financial institutions. The program depository will provide efficient and cost-effective banking services for the program, which shall include the following:

1. 1) opening and maintaining a demand deposit account for the Treasurer in which all electronic transfers will be deposited;
2. 2) opening and maintaining an interest-bearing account in the name of the Treasurer for the funds received in the demand deposit account; and
3. 3) accepting and processing instructions from the Treasurer to transfer funds from the investment account to the demand deposit account.