§ 9-4-818 — Deposits by political subdivisions; applications by, and approval of, banks; rate of interest; defaults

(a) Applications by banks, savings and loan associations
or credit unions shall be submitted to the proper governing
board and shall be acted upon by the proper governing board as
soon thereafter as practicable. Prior to the deposit, the board
shall negotiate the rate of interest applicable to the deposit.
No monies shall be deposited by any treasurer except in banks,
savings and loan associations or credit unions which have been
approved by the proper governing board.
(b) If any depository defaults, the treasurer for the
local government may sell any or all collateral that is pledged
as security for the deposit of public funds in the depository at
public or private sale. Notice of the sale of the collateral is
required only if the treasurer determines that the collateral is
illiquid. If notice is required, it shall be given by
publication in a newspaper of general circulation in the county
or counties in which real estate, in the case of mortgages, or
local governments, in the case of local government bonds, are
located, once each week for three (3) consecutive weeks.