§ 45-14-105 — Commissioner - Survey of pertinent laws of other states - Investments and activities - Authorization of investments permissible for federal savings banks - Competitive equality

(a) The commissioner may survey periodically the laws and regulations governing savings banks chartered under the laws of other states, and that meet the definition of a "savings bank" under § 3(g) of the Federal Deposit Insurance Act ( 12 U.S.C. § 1813(g) ), as in effect as of September 1, 1990, and, based upon the best practices of such foreign savings banks, may authorize savings banks to make investments and engage in activities not otherwise permissible under this chapter; provided, that investments and activities authorized under this section may not exceed in the aggregate an amount equal to five percent (5%) of the assets of the savings bank. (b) The commissioner may authorize savings banks to make any investment or engage in any activity that is permissible for federal savings banks, subject to the same limitations applicable to the federal savings banks, upon the commissioner's determination that, in the absence of the authorization, savings banks chartered under this chapter may be at a significant disadvantage in their ability to compete with other depository institutions. (c) Subject to reasonable regulation to preserve safety and soundness, the commissioner may authorize a state bank to make any investment or engage in any activity permissible to institutions chartered under this chapter that the commissioner determines to be necessary to preserve the competitive equality between depository institutions.

Legislative History

Acts 1991, ch. 177, § 6; 1996, ch. 768, §§ 32, 33.