§ 19-3.1-7. Assets equal to capital stock as pledged — Preference over other creditors.
A portion of the assets of every financial institution subject to this chapter, equal in value to the par value of its capital stock, shall stand pledged, and shall be taken and considered as the security required by law, for the faithful performance of the institution’s duties as trustee, executor, administrator, custodian, conservator, guardian, assignee or receiver, except as otherwise provided, and for the deposits made by executors, administrators, custodians, conservators, assignees, or receivers, trustees, or guardians. In case of loss, any person beneficially entitled to these estates, and any executor, administrator, custodian, conservator, assignee, or receiver, trustee, or guardian making the deposits shall be first indemnified in full from the amounts so pledged in preference to all other creditors.
History of Section.P.L. 1995, ch. 82, § 41.
Structure Rhode Island General Laws
Title 19 - Financial Institutions
Section 19-3.1-2. - Power to hold and invest assets.
Section 19-3.1-2.1. - Permitted investments.
Section 19-3.1-3. - Financial institution acting as fiduciary.
Section 19-3.1-4. - Fiduciary bond given by financial institution.
Section 19-3.1-5. - Financial institutions administering burial grounds.
Section 19-3.1-6. - Foreign banks and trust companies — Agent to receive process.
Section 19-3.1-7. - Assets equal to capital stock as pledged — Preference over other creditors.
Section 19-3.1-8. - Deposits by financial institutions with general treasurer.
Section 19-3.1-9. - Certificates of deposit — Interest and income — Substitution of securities.