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§42-116-41  Loan portfolio valuation. –

Published: 2015

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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.)