Staff Analysis of the Legislation
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This legislation authorizes the creation of banking improvement zones, with the stated goal of encouraging new banks in areas underserved by banks. Local governments can apply to the Department of Community Affairs for a banking improvement zone designation. If the designation is granted, the local government will designate a bank within the zone to be the depository for local government funds, and subject to agreement with the bank, designate a fixed interest rate that is at or below the posted two-year certificate of deposit rate at the bank. |
