### Question
What does preferred deposits mean?


### Answer
**Preferred deposits** has the following meaning in *12 U.S.C. § 1813*:

> deposits of any public unit (as defined in paragraph (1)) at any insured depository institution which are secured or collateralized as required under State law

#### Citation:
  - *12 U.S.C. § 1813*
  - Heading: **CHAPTER 16-FEDERAL DEPOSIT INSURANCE CORPORATION**

