Rhode Island General Laws Title 35. Public Finance § 35-10.1-3. Securing of deposits

(a) Every qualified public depository shall, at a minimum insure or pledge eligible collateral equal to one hundred percent (100%) of public deposits which are time deposits with maturities greater than sixty (60) days, and which were maintained with that depository institution as of October 1, 1991; provided, that any qualified depository institution which does not meet its minimum capital standard as prescribed by its federal regulator shall insure or pledge eligible collateral equal to one hundred percent (100%) of all public deposits maintained with that depository institution as of October 1, 1991. The amount of eligible collateral required shall be determined when funds are deposited, for time deposits, and at the end of each month for demand deposits. The amount of required insurance shall be determined in accordance with § 35-10.1-8.

(b) All eligible collateral shall be designated as security for public deposits under this chapter and shall be segregated from the depository institution's other assets, by:

(c) If eligible collateral has been designated and segregated as provided in this section, the public depositor shall be deemed to have a perfected security interest therein.

(d) The qualified depository institution shall deliver to the general treasurer, municipal finance officer, or chief financial officer a power of attorney authorizing the general treasurer, municipal finance officer, or chief financial officer to transfer or liquidate these securities in the event of default, financial failure, or insolvency of a depository institution.