45-8-14.1. Funds held by depository; policies and procedures; effective date.

For the purposes of this chapter, funds shall be considered to be held by a depository, regardless of whether or not such funds are subsequently distributed among one or more federally insured banks or savings and loan associations, provided that:#

1. (1)

   The funds are initially deposited in a depository whose deposits are insured by the Federal Deposit Insurance Corporation;#

2. (2)

   Such depository arranges for depositing the funds in one or more federally insured banks or savings and loan associations insured by the Federal Deposit Insurance Corporation, wherever located;#

3. (3)

   The full amount of the principal and accrued interest of each financial deposit instrument is insured by the Federal Deposit Insurance Corporation; and#

4. (4)

   Any third-party service provider facilitating the placement of deposits in accordance with this Code section is approved by the State Depository Board.#

Pursuant to Code Section 50-17-53 and the other powers of the State Depository Board, the State Depository Board shall establish policies and procedures related to the approval of third-party service providers and the ongoing monitoring of participation in deposit placement programs in accordance with this Code section. The State Depository Board shall establish such policies and procedures no later than December 31, 2019.#