CT HB05501

Establishes the "State Assisted Fund and Exchange Fund" to provide secondary market capital liquidity for state-chartered banking institutions and quasi-public agencies originating small and mid-size business credit loans, effective July 1, 2010.

Creates a State Assisted Fund and Exchange Committee comprised of representatives from the Banking Department, Office of Policy and Management, State Treasurer, State Comptroller, Connecticut Development Authority, and Department of Economic and Community Development to oversee fund expenditures and develop eligibility guidelines.

Authorizes the State Bond Commission to issue up to $5 million in bonds to provide capital liquidity for eligible state-chartered banking institutions, subject to availability of federal funding.

Requires the Department of Economic and Community Development to exchange all loan originations as whole loans with the United States Treasury for an amount equal to the total originations when dedicated fund moneys are exhausted.

Bonds issued under this act are general obligations of the state with full faith and credit pledged for principal and interest payments, with bonds maturing within twenty years of issuance.