§ 42-64-37. Loan and loan guarantee programs.
(a) The board shall establish by January, 2014, a risk management program for all loans,
loan guarantees, and all other financial commitments into which the corporation enters.
The program shall be established in conjunction with the state's banking regulators
and shall consist of at least the following components:
(1) A set of principles and guidelines for providing any financial commitments to be made
by the corporation; and
(2) A public process for providing financial commitments to include the formation of a
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§ 42-64-37. Loan and loan guarantee programs.
(a) The board shall establish by January, 2014, a risk management program for all loans,
loan guarantees, and all other financial commitments into which the corporation enters.
The program shall be established in conjunction with the state's banking regulators
and shall consist of at least the following components:
(1) A set of principles and guidelines for providing any financial commitments to be made
by the corporation; and
(2) A public process for providing financial commitments to include the formation of a
subcommittee of the board to review, analyze, and approve all commitments. This process
shall include the formation of a subcommittee that consists of members of the board
and other non-board members that shall have no affiliation with the corporation or
with the organization seeking the financial commitment. The board shall appoint the
non-board members. No employee of the corporation shall be a member of the subcommittee.
The subcommittee shall be required to approve or reject the financial commitment in
accordance with the set of principles established by the board.
(b) The board shall approve in public session all financial commitments after the subcommittee
has rendered its opinion regarding the commitment. The board shall opine that the
commitment meets the principles and guidelines established by the board.
(c) The board shall annually audit and provide a risk analysis of all outstanding financial
commitments. The board shall engage an external firm qualified to conduct such analysis
and shall submit the report to the general assembly, chairs of the house finance committee
and the senate finance committee.
(d) The board shall establish a monitoring process for each financial commitment which
shall be a part of the risk analysis report.
(e) The board shall review the risk analysis report and make modifications to the financial
commitment as it deems necessary.