1493-S.E AMS WILL S3496.2

ESHB 1493 - S AMD TO TED COMM AMD AS AMENDED (1493-S.E AAS 4/16/93)

By Senators Williams and Skratek

                                               ADOPTED 4/24/93

     On page 16, beginning on line 13, strike section 30 and insert the following:

     "NEW SECTION. Sec. 30.  A new section is added to chapter 43.86A RCW to read as follows:

     (1) The state treasurer shall establish a linked deposit program for investment of deposits in qualified public depositaries.  As a condition of participating in the program, qualified public depositaries must make qualifying loans as provided in this section.  The state treasurer may purchase a certificate of deposit that is equal to the amount of the qualifying loan made by the qualified public depositary or may purchase a certificate of deposit that is equal to the aggregate amount of two or more qualifying loans made by one or more qualified public depositaries. 

     (2) Qualifying loans made under this section are those that:

     (a) Are loans that have terms that do not exceed ten years;

     (b) Are made to a minority or women's business enterprise that has received state certification under chapter 39.19 RCW;

     (c) Are made to minority or women's business enterprises that are considered a small business as defined in RCW 43.31.025;

     (d) Are made where the interest rate on the loan to the minority or women's business enterprise does not exceed an interest rate that is two hundred basis points below the interest rate the qualified public depositary would charge for a loan for a similar purpose and a similar term; and

     (e) Are made where the points or fees charged at loan closing do not exceed one percent of the loan amount.

     (3) In setting interest rates of time certificate of deposits, the state treasurer shall offer rates so that a two hundred basis point preference will be given to the qualified public depositary."

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