§ 35-4-4.3 - State Linked Deposit Policy – Deposit of funds. - Rhode Island Statutes

SECTION 35-4-4.3

   § 35-4-4.3  State Linked Deposit Policy– Deposit of funds. – The state, and its agencies and quasi-public authorities, shall invest or holdfunds on deposit, whether temporarily or permanently, only at federally insuredand regulated banks that are deemed to be financially sound or in money fundsoffered by banks directly or through their affiliates or subsidiaries,according to state investment commission rules, regulations, and guidelines andalso in full compliance with the federal Community Reinvestment Act (CRA), 12U.S.C. § 2901 et seq. Initially, full compliance shall mean that the bankhas been reviewed at least once by the appropriate federal regulatory authorityand has achieved the "outstanding" or "satisfactory" rating for compliance atthe time of its latest review. Should a bank's rating fall below"satisfactory", the state shall have a reasonable amount of time to withdrawits funds. Preference will be given in the placement of state funds to thosebanks which have achieved a CRA rating of "outstanding". A system fordetermining this preference will be established in writing by the generaltreasurer after consultation with the state investment commission.