Rhode Island General Laws 42-116-2. Legislative findings
(a) It is found that certain credit unions, loan and investment companies, and bank and trust companies organized and existing under the laws of the state whose deposits were previously insured by the Rhode Island share and deposit indemnity corporation, are presently unable and in the foreseeable future will be unable to obtain deposit insurance required by § 19-11-9.
Terms Used In Rhode Island General Laws 42-116-2
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commission: means the select commission to investigate the failure of RISDIC insured financial institutions established pursuant to P. See Rhode Island General Laws 42-116-3
- Continuance: Putting off of a hearing ot trial until a later time.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the Rhode Island depositors economic protection corporation. See Rhode Island General Laws 42-116-3
- Department: means the department of business regulation. See Rhode Island General Laws 42-116-3
- Deposit liabilities: means liabilities of an eligible institution in respect of time, savings, demand or other deposits of the institution, including without limitation certificates of deposit, individual retirement accounts, escrow and fiduciary accounts, and unpaid cashiers checks issued to depositors or issued to or for depositors in the course of a withdrawal from an account at the institution. See Rhode Island General Laws 42-116-3
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- real estate: may be construed to include lands, tenements, and hereditaments and rights thereto and interests therein. See Rhode Island General Laws 43-3-10
(b) It is further found that the director of the department of business regulation may apply to place a number of the financial institutions described above into receivership pursuant to chapter 15 of Title 19.
(c) It is further found that the interests of the citizens of the state may be protected best by the establishment of a corporation to purchase certain assets of the financial institutions, the consideration for the purchases to include the payment to the depositors of the institutions certain amounts in respect of their deposit liabilities upon those terms and conditions that the corporation deems advisable.
(d) It is further found that the establishment of a corporation is necessary to the essential public purposes of protecting the depositors of the financial institutions, providing stability for financial institutions, promoting the welfare of the people of the state, and improving the economic welfare of the people of the state.
(e) The purpose of this chapter is to establish the Rhode Island depositors economic protection corporation, with the power and authority to acquire all or a portion of the assets of the financial institutions upon those terms and conditions that the corporation deems advisable the consideration for which may include payment to the depositors of the institutions of certain amounts in respect of their deposit liabilities, which acquisition is intended to aid the prompt payment of the deposit liabilities of the financial institutions to each depositor to the extent and in the manner as the corporation determines. In carrying out its purpose, the corporation seeks to:
(1) Maximize the return from the sale or other disposition of the assets of the corporation;
(2) Minimize the impact of those transactions on local real estate and financial markets; and
(3) Make efficient use of funds obtained from the proceeds of the assets or from the state.
(f) Further, the investigation by the select commission to investigate the failure of RISDIC insured financial institutions is helpful to the people of the state in the determination and the disclosure of the facts surrounding the failure of the RISDIC insured financial institutions and the continuance of the work of the commission may be delayed or impaired unless the costs and expenses of the commission are funded and the work of the commission may assist the corporation in its public purpose of helping depositors.
History of Section.
P.L. 1991, ch. 3, § 4; P.L. 1992, ch. 112, § 1.