Rhode Island § 42-64-37 - Rhode Island Commerce Corporation

§ 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.