§ 42-116-2 - Legislative findings.
SECTION 42-116-2
§ 42-116-2 Legislative findings. –(a) It is found that certain credit unions, loan and investment companies, andbank and trust companies organized and existing under the laws of the statewhose deposits were previously insured by the Rhode Island share and depositindemnity corporation, are presently unable and in the foreseeable future willbe unable to obtain deposit insurance required by § 19-11-9.
(b) It is further found that the director of the departmentof business regulation may apply to place a number of the financialinstitutions described above into receivership pursuant to chapter 15 of title19.
(c) It is further found that the interests of the citizens ofthe state may be protected best by the establishment of a corporation topurchase certain assets of the financial institutions, the consideration forthe purchases to include the payment to the depositors of the institutionscertain amounts in respect of their deposit liabilities upon those terms andconditions that the corporation deems advisable.
(d) It is further found that the establishment of acorporation is necessary to the essential public purposes of protecting thedepositors of the financial institutions, providing stability for financialinstitutions, promoting the welfare of the people of the state, and improvingthe economic welfare of the people of the state.
(e) The purpose of this chapter is to establish the RhodeIsland depositors economic protection corporation, with the power and authorityto acquire all or a portion of the assets of the financial institutions uponthose terms and conditions that the corporation deems advisable theconsideration for which may include payment to the depositors of theinstitutions of certain amounts in respect of their deposit liabilities, whichacquisition is intended to aid the prompt payment of the deposit liabilities ofthe financial institutions to each depositor to the extent and in the manner asthe corporation determines. In carrying out its purpose, the corporation seeksto:
(1) Maximize the return from the sale or other disposition ofthe assets of the corporation;
(2) Minimize the impact of those transactions on local realestate and financial markets; and
(3) Make efficient use of funds obtained from the proceeds ofthe assets or from the state.
(f) Further, the investigation by the select commission toinvestigate the failure of RISDIC insured financial institutions is helpful tothe people of the state in the determination and the disclosure of the factssurrounding the failure of the RISDIC insured financial institutions and thecontinuance of the work of the commission may be delayed or impaired unless thecosts and expenses of the commission are funded and the work of the commissionmay assist the corporation in its public purpose of helping depositors.