General Assembly Substitute Bill No. 236
February Session, 2010 *_____SB00236BA____031710____*
General Assembly
Substitute Bill No. 236
February Session, 2010
*_____SB00236BA____031710____*
AN ACT ESTABLISHING A CONNECTICUT SAFE HARBOR FUND.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2010) (a) There is established an account to be known as the "Connecticut Safe Harbor Fund" which shall be a separate, nonlapsing account within the General Fund. There shall be deposited into the fund: (1) The proceeds of notes, bonds or other obligations issued by the state for the purpose of deposit in the fund; (2) funds appropriated by the General Assembly for the purpose of deposit in the fund; (3) the proceeds of investments by community banks made pursuant to this section; and (4) any additional moneys made available from any sources, public or private, for the purposes described in subsection (b) of this section and for the purpose of deposit in the fund.
(b) The Banking Department shall expend moneys in the account established pursuant to subsection (a) of this section to (1) purchase existing community bank loans that are (A) negatively rated, but current, or in default, and (B) those that the community bank prefers not to abandon but, pursuant to regulatory restrictions, is required to abandon; (2) hold, modify, restructure or maintain such community bank loans as a portfolio loan for up to five years or until the portfolio loan is sold to a bank that is likely to attract investment, whichever occurs first; and (3) ultimately yield a rate of return on such community bank loans at or near the market interest rate. A community bank that sells an existing loan pursuant to this section shall have the right of first refusal to repurchase the loan.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2010 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2010
New section
Statement of Legislative Commissioners:
In subsection (b)(2) "maintain as a portfolio loan such loans" was changed to "maintain such community bank loans as a portfolio loan" and "until the loan" was changed to "until the portfolio loan" for added clarity. In subsection (b)(3) "such loans" was changed to "such community bank loans" for added clarity.
BA Joint Favorable Subst.-LCO
BA
Joint Favorable Subst.-LCO