§ 3-24k — Investments with community banks and community credit unions.

(a) The State Treasurer may establish a program under which the State Treasurer may, based on cash availability, make available a pool of funds not exceeding three hundred million dollars for investment with eligible community banks and community credit unions. Such funds shall be obtained from the state's operating cash managed by the State Treasurer. (b) (1) The State Treasurer shall establish eligibility criteria for any program established under subsection (a) of this section. Such eligibility criteria shall include, at a minimum, an asset limit for community banks and community credit unions to participate in such program. Such asset limit shall provide that: (A) During the period beginning July 1, 2023, and ending September 29, 2024, no community bank or community credit union with assets exceeding two billion dollars may participate in such program; and (B) beginning September 30, 2024, no community bank or community credit union may participate in such program if such community bank's or community credit union's assets exceed the sum of (i) the preceding asset limit established by the State Treasurer, and (ii) the median percentage loan growth of community banks and community credit unions eligible for the program at the time when the State Treasurer establishes such asset limit. As used in this subsection, “median percentage loan growth” means the middle value representing the percentage increase or decrease, as the case may be, in loan assets over a period of time reflected on the balance sheet of a specified group of lenders. (2) Not later than July 1, 2024, and annually thereafter, the State Treasurer shall provide to the Department of Banking a list of the community banks and community credit unions that are eligible to participate in such program at the time when the State Treasurer provides each such list to the department. Not later than August 31, 2024, and annually thereafter, the Department of Banking shall provide to the State Treasurer the median percentage loan growth of each such community bank and community credit union. (c) The State Treasurer shall establish a schedule for making such investments with such banks and credit unions. (d) The State Treasurer shall establish a competitive bidding procedure under which such banks and credit unions may compete for investment-related services under said program. (e) The State Treasurer may establish capital standards for such banks and credit unions wishing to participate in said program.

Legislative History

(P.A. 03-226, S. 2; P.A. 23-126, S. 28.) History: P.A. 23-126 amended Subsec. (a) by replacing $100,000,000 with $300,000,000 and inserting “eligible”, added new Subsec. (b) re eligibility criteria and asset limit, requirement that State Treasurer annually provide list of certain banks and credit unions to Department of Banking and requirement that Department of Banking annually provide median percentage loan growth of certain banks and credit unions to State Treasurer, redesignated existing Subsecs. (b) and (c) as new Subsecs. (c) and (d) and redesignated existing Subsec. (d) as Subsec. (e), effective July 1, 2023.