SB548 Alabama 2010 Session

Summary

Primary Sponsor

Zeb Little

Democrat

Co-Sponsor

Lowell Barron

Session

Regular Session 2010

Title

Banks receiving state funds from State Treasurer, required to lend funds for purchases and refinancing of homes and businesses, Sec. 41-14-33 am'd.

Summary

SB548 would temporarily require banks that receive state funds to lend money for Alabama home purchases/refinancing or for expanding/new Alabama businesses, with rates tied to Treasury rates, for 2010 and 2011.

What This Bill Does

It would amend the state's banking rules to require depositories that receive state funds to lend money for Alabama homes or for expanding/new businesses, on a temporary basis. It would have the Treasurer allocate time deposits to only banks meeting lending thresholds—specifically those that lend at least five times the deposit amount to Alabama homebuyers or refinancers or to new business investments creating at least five jobs per loan, during 2010 and 2011. It also ties the interest paid on these deposits to Treasury rates, with a 25-basis-point reduction for those years and with specific maturities and early withdrawal rules.

Who It Affects

• Alabama banks and other state depositories that receive state funds, which would be required to lend a defined portion of those funds to eligible homebuyers or small businesses and could be prioritized in deposit allocations.
• Alabama residents and businesses, including homebuyers/refinancers and small business borrowers, who may gain access to directed lending opportunities and job-creating investments during 2010-2011.

Key Provisions

• Amends Section 41-14-33 to add a temporary lending requirement for depositories that receive state funds to lend for Alabama homes or for expanding/new businesses.
• For tax years ending 2010 and 2011, time deposits must be apportioned only among state depositories that lend at least five times the deposit amount to Alabama citizens for home purchases/refinancing or for new business investment creating at least five jobs per loan during May 2010 to May 2011.
• Interest on time deposits (91 days, 6 months, 1 year) is based on corresponding U.S. Treasury rates (using auction averages for 91 days and 26 weeks and the weekly 1-year CMT); for 2010-2011, the rate is adjusted by subtracting 25 basis points for these maturities.
• Interest payments for these deposits are governed by Section 41-14-34, and there are early withdrawal provisions for 91-day deposits with written notice at least 14 days prior.
• The act becomes effective immediately after passage, indicating the temporary nature of the provisions.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Banks and Banking