CT SB00236

Establishes the "Connecticut Safe Harbor Fund" as a separate, nonlapsing account within the General Fund, effective October 1, 2010

Fund receives deposits from state-issued bonds or notes, General Assembly appropriations, community bank investment proceeds, and other public or private sources

Banking Department shall use fund moneys to purchase negatively rated but current or defaulted community bank loans that banks are required to abandon due to regulatory restrictions

Banking Department holds, modifies, restructures, or maintains purchased loans as portfolio loans for up to five years or until sale to an investment-attracting bank, with a target rate of return at or near market interest rates

Community banks that sell loans to the fund retain the right of first refusal to repurchase those loans