TITLE 42
State Affairs and Government
CHAPTER 42-116
Rhode Island Depositors Economic Protection Corporation
SECTION 42-116-41
§ 42-116-41 Loan portfolio valuation.
(a) On or before the winter meeting of the performance review committee, the
corporation shall submit to the committee an assessment of the current market
value of the remaining loans and real estate owned. This assessment shall
contain a profile of the portfolio in sufficient detail to permit an informal
valuation by an investor. The assessment shall report the known transactions
involving similar portfolios, which have been reported in the publications that
report the results of auctions or sales of similar portfolios and provide an
analysis to the potential market reception of a theoretical decision by the
corporation to invite bids to sell the portfolio.
(b) The portfolio profile will include a stratification of
loans by performance status and collateral type. Data will include the number
of loans in each classification, the aggregate principal balance, the "Legal
Balance", the dollar weighted average rate of interest, dollar weighted average
delinquencies, and the dollar weighted average maturity. The profile is to be
consistent with those of similar portfolios, which are offered by lenders to
investors in the institutional investment market.
(c) Should comparable information provided be inconclusive as
to the current market value of the portfolio, the committee may recommend to
the Rhode Island depositors economic protection corporations' board of
directors that the corporation seek an informal review of the potential value
of the portfolio by an investor within one hundred twenty (120) days of the
committee's winter meeting.
History of Section.
(P.L. 1996, ch. 212, § 1; P.L. 2006, ch. 216, § 53.)
