§ 35-10.1-2. Definitions.
The following definitions shall apply for the purposes of this chapter:
(1) "Commission� shall mean the state investment commission established pursuant to chapter
10 of this title.
(2) "Depository institution� shall mean any state chartered bank or trust company, state
chartered loan and investment company or building loan company, national banking association,
state chartered savings bank, or federally chartered savings bank insured by the federal
deposit insurance corporation or a federally or state chartered credit union insured
by the national credit union administration.
(3) "Eligible collateral� shall mean assets owned by a depository institution free and
clear of any right, title, or interest of any other party (other than a public depositor
that acquires a security interest in the collateral) pursuant to this chapter and
consisting of:
(i) Obligations of the United States government or any of its agencies or instrumentalities;
(ii) Obligations of the state or any of its political subdivisions, or of any of the agencies,
boards, or commissions of the state or political subdivision;
(iii) Obligations of any state other than Rhode Island or any of that other state's political
subdivisions, or any of the agencies, boards, or commissions of that state or political
subdivision, provided that these obligations are rated not less than "A� by standard
& poor's corporation or moody's investors service;
(iv) One to four (4) family residential mortgage loans; provided, that the value of the
collateral is not less than one hundred fifty percent (150%) of the public deposit
secured thereby; and provided, further, that the original loan to value ratio on the
individual mortgage loans pledged as collateral shall not have exceeded eighty percent
(80%) unless private mortgage insurance was obtained with respect to any excess; however,
collateral of this type shall not exceed twenty-five percent (25%) of total collateral
pledged by a depository institution; or
(v) Other marketable securities and debt instruments determined by the commission to be
satisfactory for purposes of providing liquid assets in the event of the default or
insolvency of a qualified depository institution; provided, that the commission gives
prompt public notice of any determination it makes under this paragraph; and provided,
further, that all depository institutions are permitted to use any category of eligible
collateral approved under this section; however, collateral of this type shall not
exceed ten percent (10%) of total collateral pledged by a depository institution.
(4) "Public deposit� shall mean funds deposited in a demand account or time deposit account
at any depository institution by the state or any of its agencies, boards, or commissions,
or by any governmental subdivision of the state or any of the subdivision's agencies,
boards, commissions, or districts.
(5) "Public depositor� shall mean the entity in the name of which a public deposit is
maintained.
(6) "Qualified depository institution� shall mean a depository institution that has satisfied
all of the requirements of this chapter with respect to insuring or securing public
deposits held by that institution.
(7) "State� shall mean the state of Rhode Island.