§ 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.