§ 19-4-2 - Periodic examinations – Access to records.
SECTION 19-4-2
§ 19-4-2 Periodic examinations –Access to records. – (a) The director or the director's designee shall, whenever he or she considersit advisable, but at least once in each year, examine each regulatedinstitution. However, the director may extend the examination period foreligible financial institutions to at least once every eighteen (18) months.For the purposes of this section, an eligible financial institution means afinancial institution with total assets of less than two hundred fifty milliondollars ($250,000,000) which has not experienced a change in control in thelast twelve (12) month period and which is:
(1) Well capitalized;
(2) Well managed;
(3) Highly rated by state and federal banking regulatoryagencies; and
(4) Not subject to a formal enforcement proceeding or order.
In addition, the director may also consider other factorsthat may be considered by federal banking regulatory agencies when thoseagencies determine whether financial institutions qualify for an extendedexamination cycle. At each examination the director or the director's designeeshall have free access to all books, records, papers, assets and any otherinformation deemed necessary by the director or the director's designee toascertain the regulated institution's condition, its ability to fulfill itsobligations, and whether it has complied with the provisions of law.
(b) The total cost of an examination made pursuant to thissection shall be paid by the examined party, and shall include the followingexpenses:
(1) One hundred fifty percent (150%) of the salary andbenefits of the examining personnel engaged in the examination and shall bepaid to the director to and for the use of the state. The assessment shall bein addition to any taxes and fees otherwise payable to the state. The totalexamination fees under this section payable in any one year shall not exceedone hundred thousand dollars ($100,000) for any one regulated institution;
(2) All reasonable technology costs related to theexamination process. Technology costs shall include the actual cost of softwareand hardware utilized in the examination process and the cost of trainingexamination personnel in the proper use of the software or hardware; and
(3) All necessary and reasonable education and training costsincurred by the state to maintain the proficiency and competence of theexamination personnel. All such costs shall be incurred in accordance withappropriate state of Rhode Island regulations, guidelines and procedures.
(c) Expenses incurred pursuant to subsections (b)(2) and(b)(3) of this section shall be allocated equally to each regulated institutionno more frequently than annually and shall not exceed an annual averageassessment of seven hundred fifty dollars ($750) per regulated institution forany given three (3) calendar year period. All revenues collected pursuant tothis section shall be deposited as general revenues. That assessment shall bein addition to any taxes and fees otherwise payable to the state.
(d) The director or the director's designee is authorized toaccept in his or her discretion the report of any examination conducted by anyfederal banking regulatory or federal deposit insuring agencies or other statebanking regulatory agency in lieu of an examination by the director or his orher designee.