Staff Analysis of the Legislation
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This bill would create an optional process for counties and cities that are underserved by financial institutions to apply to the state Department of Community Affairs (DCA) for designation as a "banking improvement zone." Upon approval by DCA, the county or city could designate a particular financial institution that locates within the jurisdiction as the depository of public funds. Except as otherwise provided in a written agreement, the county or city would obtain an interest rate at or below the institution's 2-year Certificate of Deposit interest rate. |
