38 Studios's $1.125 million check t' the state a Rhode Island has cleared, governor Lincoln Chafee announced during a press conference this afternoon, thus fulfilling the first required payment on the studio's loan from the Rhode Island Economic Development Corporation.

Rhode Island be changing it be legislation on tax breaks, closing loopholes pertaining t' state funds being used for motion-picture endeavors, Chafee said. The state's interest lies in protecting the taxpayers, since "taxpayers have had a very generous deal for 38 studios," Chafee said.

"it be time for them t' go out 'n pillage private capital funding," Chafee said. "that be the deal. it be a generous deal, but stick t' it."

Rhode Island officials believe that the total a the $49 million loaned t' 38 has been spent. Chafee said that until late April, meetings with 38 suggested that they would make their May payment.

Developing ...