§ 19-12-6 - Legislative findings.
SECTION 19-12-6
§ 19-12-6 Legislative findings. – It is hereby found as follows:
(1) Certain financial institutions or credit unions whosedeposits were previously insured by the Rhode Island share and depositindemnity corporation, are presently unable to obtain adequate depositinsurance as required by § 19-4-10 (formerly § 19-11-9).
(2) As a result thereof, a proclamation of the governor datedJanuary 1, 1991 declared a banking emergency under chapter 13 (formerly chapter18) of this title with respect to certain of those financial institutions orcredit unions pursuant to which operations of those financial institutions orcredit unions have been suspended pending their obtaining adequate depositinsurance, and a number of them have obtained federal deposit insurance andhave been permitted to resume operations.
(3) There remain more than twelve (12) financial institutionsor credit unions subject to orders suspending their operations, which orderspreclude approximately one hundred ninety thousand (190,000) members and/ordepositors of these financial institutions or credit unions from having accessto approximately three hundred thousand (300,000) separate accounts that in theaggregate total more than one billion dollars ($1,000,000,000).
(4) The inability of depositors in the remaining financialinstitutions or credit unions to withdraw their deposits has created hardshipsnot only for those depositors and their families, but also for a broad sectorof citizens and businesses in the state of Rhode Island that depend on paymentsfrom depositors for goods and services supplied to them.
(5) It is hereby determined to be necessary in order topreserve and restore liquidity to the economy of the state, to protect depositsof state funds in these financial institutions or credit unions, and to protectthe health, safety and general welfare of the people of the state of RhodeIsland, for the general assembly to exercise its constitutional and otherpowers to enact measures to achieve these essential public purposes byproviding for the relief of persons affected by the suspension of withdrawalsfrom the financial institutions or credit unions affected by the bankingemergency by expediting access by depositors to funds and assets in thesefinancial institutions or credit unions.
(6) The numbers of people, accounts and funds adverselyaffected indicate that, without prompt state legislative action, there will bea serious negative impact on the health, safety and general welfare of thepeople and the economy of the state, already weakened by current economicconditions.
This chapter shall, therefore, be deemed to be an exercise ofthe police powers of this state to achieve the essential public purpose ofproviding for the protection of the health, safety and general welfare of thepeople of the state by amending the general laws of Rhode Island to grantpriorities in distributions to depositors upon the liquidation of financialinstitutions or credit unions and to expedite receivership and otherproceedings intended to make available to depositors and other affected partiesfunds and the value of assets in the affected financial institutions and creditunions.