§ 42-116-12.1. Distribution of funds in individual retirement accounts.
(a) Prior to the distribution of depositors’ funds in individual retirement accounts in accordance with § 42-116-12, the corporation shall provide depositors with the option of receiving the funds on deposit or transferring the funds to a federally insured institution or other individual retirement account that meets the Internal Revenue Code, 26 U.S.C. § 1 et seq., in accordance with applicable federal tax law and regulations.
(b) The corporation shall mail a form to all depositors with funds on deposit in individual retirement accounts thirty (30) days prior to the distribution of the funds in accordance with § 42-116-12. The form shall include: a statement that under current federal law, an account holder who receives proceeds from an individual retirement account, prematurely, prior to age fifty-nine (59) years, six (6) months, generally pays a ten percent (10%) penalty; an election by the depositor to receive the funds in accordance with the schedule of payments in § 42-116-12 or have the funds transferred to an institution designated by the depositor, and shall provide that the signature of the depositor shall constitute an authorization to transfer funds. The corporation shall also mail a copy of the form authorization to the designated financial institution.
History of Section.P.L. 1991, ch. 426, § 1.
Structure Rhode Island General Laws
Title 42 - State Affairs and Government
Chapter 42-116 - Rhode Island Depositors Economic Protection Corporation
Section 42-116-1. - Short title.
Section 42-116-2. - Legislative findings.
Section 42-116-3. - Definitions.
Section 42-116-5. - General powers of corporation.
Section 42-116-5.1. - Sale of property.
Section 42-116-6. - Additional general powers.
Section 42-116-7. - Assumption of liabilities and distribution.
Section 42-116-10. - Promulgation of regulations.
Section 42-116-11. - Payment of state funds — Agreement between corporation and department.
Section 42-116-12. - Payment of depositor’s claims.
Section 42-116-12.1. - Distribution of funds in individual retirement accounts.
Section 42-116-13. - Bonds of the corporation.
Section 42-116-14. - Refunding bonds.
Section 42-116-15. - Bonds eligible for investment.
Section 42-116-16. - No additional consent required.
Section 42-116-17. - Bonds not obligations of the state.
Section 42-116-18. - Lien status — Recording.
Section 42-116-19. - Investment securities.
Section 42-116-20. - Trust fund.
Section 42-116-21. - Authorization to accept appropriated monies.
Section 42-116-22. - Assistance by state officers, departments, boards and commissions.
Section 42-116-23. - Certain agreements.
Section 42-116-24. - Tax exemption.
Section 42-116-25. - Duration of corporation — Termination.
Section 42-116-25.1. - Defeasance of corporation bonds.
Section 42-116-25.2. - Indemnification.
Section 42-116-26. - Record keeping — Financial statements.
Section 42-116-27. - Inconsistent laws — Supplemental powers.
Section 42-116-28. - Compliance with federal law.
Section 42-116-29. - Inapplicability of certain laws.
Section 42-116-30. - Liability of the corporation.
Section 42-116-31. - Special revenue fund.
Section 42-116-32. - Corporation’s right to subrogation.
Section 42-116-33. - Performance review committee.
Section 42-116-34. - Severability.
Section 42-116-35. - Excess interest forfeiture.
Section 42-116-36. - Recording certain transfer documents.
Section 42-116-37. - Use of funds.
Section 42-116-38. - Depositor’s advisory board.
Section 42-116-39. - Payment of commission costs.