The day before Bruce Sundlun was to take office as governor he learned that the Rhode Island Share and Depositors Insurance Corporation (RISDIC) was going into receivership. RISDIC provided depositor insurance for more than thirty banks, savings and loan institutions, and credit unions in the state. The failure of RISDIC meant that the funds deposited in those institutions were no longer insured. By state law the institutions could not continue to operate without insurance.
As a result, among Sundlun's first official acts as Governor on January 1, 1991, he ordered the immediate closing of the banking institutions insured by RISDIC. They were to remain closed until such time as they could obtain federal insurance from the Federal Depositors Insurance Corporation (FDIC) or the National Credit Union Association (NCUA). Until they could obtain federal insurance, the funds of depositors in those institutions were frozen and unavailable to the depositors. Many of the RISDIC insured institutions were able to obtain federal insurance very quickly and reopen in a matter of days. Others, including many of the largest institutions, were unable to do so.
The principal response of the Sundlun Administration was the development, introduction, and passage of legislation entitled the depositors economic protection act. The legislation created a government corporation, the Depositors Economic Protection Corporation (DEPCO), to restore funds to depositors as quickly as possible. DEPCO worked with officials and depositors of closed institutions to assist them in obtaining federal insurance if possible or to assist them in finding other banking institutions willing to purchase and reopen the closed institutions. For those institutions for which neither options proved feasible, DEPCO was empowered to assume their assets and sell them in order to get funds to depositors as quickly as possible.
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Rhode Island Depositors Economic Protection Corporation (DEPCO) records, 2002-09, Rhode Island State Archives.
The Rhode Island Depositors Economic Protection Corporation (DEPCO) records consist of records from the three DEPCO divisions: Warehouse, Loans, Administration and Payout and Investigations, Liability and Litigation. The records include corporate records, committee minutes, loan approvals, pension plans at institutions, balance sheets, payout, debentures and loan information, monthly proofs, bond information and vendor lists, loan reports, financials, legal documents, DEPCO payroll, depositions and videotapes.
The Rhode Island Depositors Economic Protection Corporation (DEPCO) records are arranged into the following series:
Transferred from Peter Barton, DEPCO Investigations Manager, 832 Dyer Avenue, Cranston, R.I. 02920 on February 6, 2002 and May 30, 2002.
Governor Bruce Sundlun papers, 1990- 1995. MSG#120. University of Rhode Island - Special Collections
Includes corporate records from the failed institutions that DEPCO helped bail out, including RISDIC, their failed insurer. These records include Articles of Incorporation (from their inception), Board of Director Minutes and Annual Meeting Booklets, Committee Meetings, Financials and Audits, etc. The institutions and their acronyms are:
Banner Loan and Investment Bank (BLIB)
Blackstone Valley Loan and Investment Bank (BLV)
Brown University Employees Credit Union (BUECU)
Central Ceredit Union (CENCU)
Chariho-Exeter Credit Union (CHEX)
Columbian Credit Union (COLCU)
Davisville Credit Union (DCU)
East Providence Credit Union (EPCU)
Greater Providence Deposit and Trust (GPDT)
Heritage Loan and Investment Bank (HLI)
Jefferson Loan and Investment Bank (JLIB)
Marquette Credit Union (MCU)
Providence Teachers Credit Union (PTCU)
Rhode Island Central Credit Union (RICCU)
Rhode Island Share and Deposit Indemnity Corporation (RISDIC)
Boxes #24-28 are Inter-Receivership and Receivership Credit Committee Minutes and Loan Approvals. Inter-Receivership minutes involved the Northeast Four, which were Columbian Credit Union, East Providence Credit Union, Greater Providence Deposit Corporation and Providence Teachers Credit Union. I believe the meetings were to discuss REO properties previously held by the credit unions and problem loans. The Receivership minutes involved Davisville Credit Union, Marquette Credit Union, Central and Rhode Island Central Credit Unions. These boxes cover the years 1991 and 1992. Boxes 28-32 are AMRESCO Asset Review Committee Meetings. These are also for REO properties and problem loans from the institutions that DEPCO was managing. These boxes are for the years 1993 through 1995 and also include committee logs, agendas and minutes from 1992.
Pensions and Profit Sharing information from all the different institutions. This includes some of the Pension Plan booklets for the credit union pensions and also specific accounts and how they were paid out through the credit union for different trust and profit sharing account.
Box #34-37 - Balance Sheet Work Papers from Institutions in 1992 to Receiverships. Box 38 - Federal Deposit Insurance Corporation and National Credit Union Association examinations and reports for individual institutions (in lieu of RISDIC insurance). Box 39-40 - Escheated checks from payouts and listings from Northeast Savings Bank of all the accounts from the Northeast four that were transferred to them in July 1992. Box 41-45- DEPCO Disaster Recovery Plans, Quasar Project and Debenture Information, DEPCO Manuals and Payout Chronology, DEPCO / NCR Manuals and DEPCO / AMRESCO Loan Operations Manuals.
by Receiverships and Monthly Proofs for DEPCO.
Includes Bond Issuance Binders, Refunding, Defeasance and Cancellation, Bond Rebate Certifications and Reviews and Vendor lists.
Includes Receivership Month End Loan Reports, REO Year End General Ledger and Final GL for ASI System, REO Fiscal Year End Detailed Reports and Amresco Fiscal Year End Loan Reports and Financials.
DEPCO and Receivership Financials and Balance Sheets, Other Historical Documents, Receiverships Interim Operating Procedures and First Interim Reports, Receivership Listing of Interim and Final Reports, Legal Documents and Court Appointments for Receivers, Receiver Agreements and Quarterly Payroll and SEP-IRA Information.
Includes depositions, case exhibits, videotapes of depositions, RISDIC Commission Videotapes and U-matic tapes, trial exhibits, Deposition Transcripts and Interviews, evidence and testimony, reports and public hearings.