§ 19-12-6. Legislative findings.
It is hereby found as follows:
(1) Certain financial institutions or credit unions, whose deposits were previously insured
by the Rhode Island Share and Deposit Indemnity Corporation, are presently unable
to obtain adequate deposit insurance as required by § 19-4-10 (formerly § 19-11-9).
(2) As a result thereof, a proclamation of the governor dated January 1, 1991, declared
a banking emergency under chapter 13 (formerly chapter 18) of this title with respect
to certain of those financial institutions or credit unions pursuant to which operations
of those financial institutions or credit unions have been suspended pending their
obtaining adequate deposit insurance, and a number of them have obtained federal deposit
insurance and have been permitted to resume operations.
(3) There remain more than twelve (12) financial institutions or credit unions subject
to orders suspending their operations, which orders preclude approximately one hundred
ninety thousand (190,000) members and/or depositors of these financial institutions
or credit unions from having access to approximately three hundred thousand (300,000)
separate accounts that in the aggregate total more than one billion dollars ($1,000,000,000).
(4) The inability of depositors in the remaining financial institutions or credit unions
to withdraw their deposits has created hardships not only for those depositors and
their families, but also for a broad sector of citizens and businesses in the state
of Rhode Island that depend on payments from depositors for goods and services supplied
to them.
(5) It is hereby determined to be necessary in order to preserve and restore liquidity
to the economy of the state, to protect deposits of state funds in these financial
institutions or credit unions, and to protect the health, safety and general welfare
of the people of the state of Rhode Island, for the general assembly to exercise its
constitutional and other powers to enact measures to achieve these essential public
purposes by providing for the relief of persons affected by the suspension of withdrawals
from the financial institutions or credit unions affected by the banking emergency
by expediting access by depositors to funds and assets in these financial institutions
or credit unions.
(6) The numbers of people, accounts, and funds adversely affected indicate that, without
prompt state legislative action, there will be a serious negative impact on the health,
safety, and general welfare of the people and the economy of the state, already weakened
by current economic conditions.
This chapter shall, therefore, be deemed to be an exercise of the police powers of
this state to achieve the essential public purpose of providing for the protection
of the health, safety, and general welfare of the people of the state by amending
the general laws of Rhode Island to grant priorities in distributions to depositors
upon the liquidation of financial institutions or credit unions and to expedite receivership
and other proceedings intended to make available to depositors and other affected
parties funds and the value of assets in the affected financial institutions and credit
unions.