SB548 Summary

• Amends Section 41-14-33 of the Alabama Code to impose temporary lending requirements on state depositories that receive state funds for time deposits.

• For tax years ending December 31, 2010 and December 31, 2011, only state depositories lending at least five times the amount of their state time deposits to Alabama citizens for home purchases or refinancing qualify to receive state funds.

• Alternatively, qualifying depositories must lend five times their state deposit amount for new business investment in Alabama that creates at least five jobs per loan during the May 1, 2010 to May 1, 2011 period.

• Reduces the interest rate paid on state time deposits by 25 basis points for tax years 2010 and 2011, calculated from U.S. Treasury Bill auction rates.

• Takes effect immediately upon passage and approval by the Governor.