§ 35-10.1-2 - Definitions.
SECTION 35-10.1-2
§ 35-10.1-2 Definitions. – The following definitions shall apply for the purposes of this chapter:
(1) "Commission" shall mean the state investment commissionestablished pursuant to chapter 10 of this title.
(2) "Depository institution" shall mean any state charteredbank or trust company, state chartered loan and investment company or buildingloan company, national banking association, state chartered savings bank, orfederally chartered savings bank insured by the federal deposit insurancecorporation or a federally or state chartered credit union insured by thenational credit union administration.
(3) "Eligible collateral" shall mean assets owned by adepository institution free and clear of any right, title, or interest of anyother party (other than a public depositor that acquires a security interest inthe collateral) pursuant to this chapter and consisting of:
(i) Obligations of the United States government or any of itsagencies or instrumentalities;
(ii) Obligations of the state or any of its politicalsubdivisions, or of any of the agencies, boards, or commissions of the state orpolitical subdivision;
(iii) Obligations of any state other than Rhode Island or anyof that other state's political subdivisions, or any of the agencies, boards,or commissions of that state or political subdivision, provided that theseobligations are rated not less than "A" by standard & poor's corporation ormoody'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 fiftypercent (150%) of the public deposit secured thereby; and provided, further,that the original loan to value ratio on the individual mortgage loans pledgedas collateral shall not have exceeded eighty percent (80%) unless privatemortgage insurance was obtained with respect to any excess; however, collateralof this type shall not exceed twenty-five percent (25%) of total collateralpledged by a depository institution; or
(v) Other marketable securities and debt instrumentsdetermined by the commission to be satisfactory for purposes of providingliquid assets in the event of the default or insolvency of a qualifieddepository institution; provided, that the commission gives prompt publicnotice of any determination it makes under this paragraph; and provided,further, that all depository institutions are permitted to use any category ofeligible collateral approved under this section; however, collateral of thistype shall not exceed ten percent (10%) of total collateral pledged by adepository institution.
(4) "Public deposit" shall mean funds deposited in a demandaccount or time deposit account at any depository institution by the state orany of its agencies, boards, or commissions, or by any governmental subdivisionof the state or any of the subdivision's agencies, boards, commissions, ordistricts.
(5) "Public depositor" shall mean the entity in the name ofwhich a public deposit is maintained.
(6) "Qualified depository institution" shall mean adepository institution that has satisfied all of the requirements of thischapter with respect to insuring or securing public deposits held by thatinstitution.
(7) "State" shall mean the state of Rhode Island.