reglab/statecodes huggingface dataset:
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-7 - Interstate Banking, Interstate Branching and Bank Holding Company Mergers and Acquisitions › Section 19-7-1. - Definitions.

§ 19-7-1. Definitions.
(a)
For the purposes of this chapter, the term or terms:
(1)
“Bank”, “bank-holding company”, “company”, “subsidiary”, and “control” have the meanings set forth in the federal Bank Holding Company Act of 1956, 12 U.S.C. § 1841 et seq., except that “bank” shall also include financial institutions, as defined in this title, and other forms of federally-insured-deposit-taking institutions. Bank-holding companies shall include thrift-holding companies as set forth in the Home Owners’ Loan Act, 12 U.S.C. § 1461 et seq., whether organized with or without capital stock.
(2)
“Out-of-state bank” means a bank whose principal office is located in any other state.
(3)
“Out-of-state bank-holding company” means a holding company for which the operations of its bank subsidiaries are principally conducted in any other state.
(4)
“Rhode Island bank-holding company” means a bank-holding company that controls a financial institution, provided that an out-of-state bank or bank-holding company that acquired control of one or more financial institutions shall not be deemed to be a Rhode Island bank-holding company, unless operations of its bank subsidiaries are principally conducted in this state.
(b)
For the purposes of this chapter, the state in which operations of a bank-holding company’s bank subsidiaries are principally conducted is the state in which total deposits of all of its bank subsidiaries are the largest.
History of Section.
P.L. 1995, ch. 82, § 45; P.L. 2017, ch. 451, § 22.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-7 - Interstate Banking, Interstate Branching and Bank Holding Company Mergers and Acquisitions › Section 19-7-2. - Acquisitions authorized.

§ 19-7-2. Acquisitions authorized.
(a)
An out-of-state bank or bank-holding company may acquire direct or indirect ownership or control of more than five percent (5%) of the voting stock of one or more financial institutions or Rhode Island bank-holding companies if the following conditions are met:
(1)
The laws of the state in which the out-of-state bank is located, or in which operations of the bank subsidiaries of an out-of-state bank-holding company are principally conducted, expressly authorize, under conditions no more restrictive than those imposed by the laws of Rhode Island, as determined by the director, or the director’s designee, the acquisition by a Rhode Island bank-holding company or a financial institution of direct or indirect ownership or control of more than five percent (5%) of the voting stock of banks located in that state or bank-holding companies, the operations of the bank subsidiaries of which are principally conducted in that state;
(2)
The acquisition, including all of the terms and conditions of the acquisition, has been approved in advance by the director, or the director’s designee, as being in the public interest, pursuant to a written order evidencing such approval. In determining whether the approval of a proposed acquisition by an out-of-state bank or bank-holding company is in the public interest, the director, or the director’s designee, shall consider, in addition to any other factors he or she may in his or her discretion determine, whether the acquisition shall promote the safety and soundness of the financial institution whose voting stock is to be acquired and the convenience and advantage of communities served by that financial institution, and whether the acquisition is likely to have a significant impact upon the state’s economy, employment levels, and tax base. Any financial institution or Rhode Island bank-holding company that is the subject of an acquisition under this section shall be a party to the proceedings of the director, or the director’s designee, and shall be entitled to seek judicial review of any final decision of the director, or the director’s designee. The procedures for notice and the conducting of hearings by the director, or the director’s designee, and the rights of appeal from decisions of the director, or the director’s designee, shall be governed by this title.
(b)
The provisions of subsection (a) shall apply to mergers, acquisitions, consolidations, or purchases of assets and assumptions of liabilities irrespective of whether the transactions under those sections involve an out-of-state bank or out-of-state bank-holding company.
(c)
The provisions of this section shall only apply after September 29, 1995, to the extent consistent with and not preempted by federal law.
History of Section.
P.L. 1995, ch. 82, § 45; P.L. 1997, ch. 98, § 6.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-7 - Interstate Banking, Interstate Branching and Bank Holding Company Mergers and Acquisitions › Section 19-7-7. - Powers authorized.

§ 19-7-7. Powers authorized.
If organized under laws other than the laws of this state, a successor bank or purchasing bank shall have and may exercise within this state the powers and privileges granted to financial institutions. A successor financial institution or purchasing financial institution shall have and may exercise in this state the powers and privileges granted to it under the laws of this state, and, in any state under the laws of which one or more of its predecessor banks was organized or in which it operates a branch, the powers and privileges granted to it under the laws of that state or states.
History of Section.
P.L. 1995, ch. 82, § 45.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-7 - Interstate Banking, Interstate Branching and Bank Holding Company Mergers and Acquisitions › Section 19-7-8. - Special definitions applicable to mergers, etc.

§ 19-7-8. Special definitions applicable to mergers, etc.
For purposes of this chapter:
(1)
The surviving or new bank resulting from a merger or consolidation, as the case may be, shall be called the “successor financial institution” or “successor bank”, as applicable;
(2)
Each bank discontinuing its corporate existence pursuant to a merger or consolidation shall be called a “predecessor financial institution” or “predecessor bank”, as applicable;
(3)
The bank purchasing assets and assuming liabilities and acquiring offices and branches under an agreement of purchase and assumption shall be called the “purchasing financial institution” or “purchasing bank”, as applicable;
(4)
The bank selling assets and permitting its liabilities to be assumed and transferring branches and offices under an agreement shall be called the “selling financial institution” or “selling bank”, as applicable;
(5)
References to “articles of incorporation” in chapter 1.2 of title 7 shall be deemed to refer to the agreement to form, charter, or the articles or agreement of association of each bank or financial institution involved, as from time to time amended, however it may be described by the law under which the institution is organized and whether or not it shall have been created by any special act of incorporation.
History of Section.
P.L. 1995, ch. 82, § 45; P.L. 2005, ch. 36, § 17; P.L. 2005, ch. 72, § 17.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-7 - Interstate Banking, Interstate Branching and Bank Holding Company Mergers and Acquisitions › Section 19-7-9. - Interstate branches.

§ 19-7-9. Interstate branches.
Upon obtaining the consent of the director, or the director’s designee, a financial institution may establish a branch, or branches, outside of this state and an out-of-state bank may establish a branch, or branches, within this state; provided that, in the case of an out-of-state bank, the law of the state in which it is principally located authorizes under conditions not substantially more restrictive than those imposed by the laws of this state, as determined by the director, or the director’s designee, a financial institution to establish a branch in that state. The director, or the director’s designee, shall approve an application for a branch if the applicant has satisfied the standards and followed the procedures set forth for the establishment of branches for financial institutions in addition to the requirements of this section.
History of Section.
P.L. 1995, ch. 82, § 45.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-7 - Interstate Banking, Interstate Branching and Bank Holding Company Mergers and Acquisitions › Section 19-7-10. - Federally chartered institutions.

§ 19-7-10. Federally chartered institutions.
To the extent it is empowered to do so, this state authorizes banks organized under the laws of the United States that have a main office in Rhode Island to merge or consolidate with and to acquire assets and assume liabilities of out-of-state banks and to have assets and liabilities assumed by out-of-state banks.
History of Section.
P.L. 1995, ch. 82, § 45.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-7 - Interstate Banking, Interstate Branching and Bank Holding Company Mergers and Acquisitions › Section 19-7-11. - Examination of mergers and acquisitions.

§ 19-7-11. Examination of mergers and acquisitions.
The director, or the director’s designee, may make or cause to be made an examination of each bank in order to fulfill the requirements of this chapter. The total cost of these examinations shall be borne by the bank so examined and shall be governed by the same terms and conditions as the examinations of regulated institutions. In lieu of this examination, the director, or the director’s designee, may accept the report of an examination made by the equivalent supervisory official of another state, pursuant to the laws of that state.
History of Section.
P.L. 1995, ch. 82, § 45.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-7 - Interstate Banking, Interstate Branching and Bank Holding Company Mergers and Acquisitions › Section 19-7-12. - Severability.

§ 19-7-12. Severability.
If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid or unconstitutional, the invalidity or unconstitutionality shall not affect other provisions or applications of this chapter that can be given effect without the invalid or unconstitutional provision or application, and to this end the provisions of this chapter are declared to be severable.
History of Section.
P.L. 1995, ch. 82, § 45.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-8 - Depository Change in Control Act › Section 19-8-1. - Definitions.

§ 19-8-1. Definitions.
For the purposes of this chapter the terms:
(1)
“Control” shall have the meaning set forth in the Bank Holding Company Act of 1956, 12 U.S.C. § 1841 et seq.
(2)
“Regulated institution” shall also include a Rhode Island bank-holding company.
History of Section.
P.L. 1995, ch. 82, § 46.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-8 - Depository Change in Control Act › Section 19-8-2. - Application to director or the director’s designee.

§ 19-8-2. Application to director or the director’s designee.
Any person who, acting directly or indirectly or through or in concert with one or more other persons, acquires control of any financial institution through purchase, assignment, transfer, pledge or other disposition of voting stock of a financial institution shall make application to the director, or the director’s designee, in the prescribed manner.
History of Section.
P.L. 1995, ch. 82, § 46.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-8 - Depository Change in Control Act › Section 19-8-3. - Review of application.

§ 19-8-3. Review of application.
Upon receiving an application, the director, or the director’s designee, shall:
(1)
Conduct an investigation of the competence, experience, integrity, and financial ability of each person by whom the acquisition is to be made; and
(2)
Make an independent determination of the accuracy and completeness of any information prescribed.
History of Section.
P.L. 1995, ch. 82, § 46.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-8 - Depository Change in Control Act › Section 19-8-4. - Contents of application.

§ 19-8-4. Contents of application.
Except as otherwise provided, an application filed pursuant to this section shall contain the following information:
(1)
The identity, personal history, business background, and experience of each person by whom or on whose behalf the acquisition is to be made, including the person’s material business activities and affiliations during the past five (5) years, a description of any material pending legal or administrative proceedings in which he or she is a party, and any pending or prior criminal indictment or conviction of the person by a state or federal court;
(2)
A statement of the assets and liabilities of each person by whom, or on whose behalf, the acquisition is to be made, as of the end of the fiscal year for each of the five (5) years immediately preceding the date of the application, together with related statements of income and source and application of funds for each of the fiscal years then concluded, all prepared in accordance with generally accepted accounting principles consistently applied, and an interim statement of the assets and liabilities for each such person, together with related statements of income and source and application of funds, as of a date not more than ninety (90) days prior to the date of the filing of the application;
(3)
The terms and conditions of the proposed acquisition and the manner in which the acquisition is to be made;
(4)
The identity, source, and amount of the funds or other consideration used, or to be used, in making the acquisition, and if any part of these funds or other consideration has been, or is to be, borrowed or otherwise obtained for the purpose of making the acquisition, a description detailing the transaction, the names of the parties, and any arrangements, agreements, or understandings with these persons;
(5)
Any plans or proposals that any acquiring party making the acquisition may have to liquidate the regulated institution, to sell its assets or merge it with any company, or to make any other major change in its business or corporate structure or management;
(6)
The identification of any person employed, retained, or to be compensated by the acquiring party, or by any person on his or her behalf, to make solicitations or recommendations to stockholders for the purpose of assisting in the acquisition, and a description of the terms of the employment, retainer, or arrangement for compensation;
(7)
Copies of all invitations or tenders or advertisements making a tender offer to stockholders for purchase of their stock to be used in connection with the proposed acquisition;
(8)
Any additional information in the form that the director, or the director’s designee, may require;
(9)
Evidence that a majority of the shares of stock entitled to vote of the financial institution whose shares of voting stock are to be acquired have approved the change of control at a meeting called for that purpose or in writing.
History of Section.
P.L. 1995, ch. 82, § 46; P.L. 2001, ch. 128, § 4.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-8 - Depository Change in Control Act › Section 19-8-5. - Issuance or denial of application.

§ 19-8-5. Issuance or denial of application.
The director, or the director’s designee, may disapprove any proposed acquisition if:
(1)
The proposed acquisition of control would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking;
(2)
The effect of the proposed acquisition of control may be substantially to lessen competition, or to tend to create a monopoly, or would in any other manner be in restraint of trade, and the anticompetitive effects of the proposed acquisition of control are not outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served;
(3)
The financial condition of any acquiring person might jeopardize the financial stability of the regulated institution or prejudice the interests of the depositors of the regulated institution;
(4)
The competence, experience, or integrity of any acquiring person, or of any of the proposed management personnel, indicates that it would not be in the interest of the depositors of the regulated institution, or in the interest of the public to permit the person to control the regulated institution;
(5)
Any acquiring person neglects, fails, or refuses to furnish the information required; or
(6)
The acquisition would not promote the public convenience and advantage.
History of Section.
P.L. 1995, ch. 82, § 46.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-8 - Depository Change in Control Act › Section 19-8-6. - Notice of change in control.

§ 19-8-6. Notice of change in control.
Whenever a change in control occurs, each regulated institution shall report promptly to the appropriate banking regulator any change or replacement of its chief executive officer or any directors occurring in the next twelve-month (12) period. The report shall contain a statement of the past and current business and professional affiliations of the new chief executive officer or directors.
History of Section.
P.L. 1995, ch. 82, § 46; P.L. 1997, ch. 98, § 7.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-8 - Depository Change in Control Act › Section 19-8-7. - Waiver of application and hearing process in the public interest.

§ 19-8-7. Waiver of application and hearing process in the public interest.
The application process and public hearing requirement may be waived by the director, or the director’s designee, in writing, when, in the public interest, the change in control results from any regulatory action in order to prevent a probable failure or default of the regulated institution.
History of Section.
P.L. 1995, ch. 82, § 46.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-8 - Depository Change in Control Act › Section 19-8-8. - Rules and regulations.

§ 19-8-8. Rules and regulations.
The director, or the director’s designee, may adopt reasonable rules and regulations for the implementation and administration of this chapter.
History of Section.
P.L. 1995, ch. 82, § 46.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-8 - Depository Change in Control Act › Section 19-8-9. - Severability.

§ 19-8-9. Severability.
If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid or unconstitutional, the invalidity or unconstitutionality shall not affect other provisions or applications of this chapter that can be given effect without the invalid or unconstitutional provision or application, and to this end the provisions of this chapter are declared to be severable.
History of Section.
P.L. 1995, ch. 82, § 46.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-1. - Definitions.

§ 19-9-1. Definitions.
For purposes of this chapter:
“Lending institution” includes any regulated institution and any person who or that makes loans of money or negotiates the lending of money for another in any state or jurisdiction.
History of Section.
P.L. 1995, ch. 82, § 47; P.L. 1997, ch. 98, § 8.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-2. - Escrow accounts — Interest.

§ 19-9-2. Escrow accounts — Interest.
(a)
Every mortgagee holding funds of a mortgagor in escrow for the payment of taxes and insurance premiums with respect to mortgaged property located in this state shall pay or credit interest on those funds at a rate equal to the rate paid to the mortgagee on its regular savings account, if offered, and otherwise at a rate not less than the prevailing market rate of interest for regular savings accounts offered by local financial institutions as determined by the director, said determination to be made within thirty (30) days of the effective date of this provision and thereafter annually on the first business day of the year. Said credit of interest shall accrue on the daily balance and be made annually on December 31. If the mortgage debt is paid prior to December 31 in any year, the interest to the date of payment shall be paid to the mortgagor. The provision of this section shall apply only with respect to mortgages on owner-occupied residential property consisting of not more than four (4) living units. The provisions of this section shall not be waived. No mortgagee holding the mortgagor’s funds in escrow for the payment of taxes shall also charge an annual “tax service fee” or other annual fee for ascertaining whether or not the real estate taxes have in fact been paid. Any mortgagee violating the provisions of this section shall be fined not more than one hundred dollars ($100) for each offense.
(b)
Mortgages insured or guaranteed by the Farmer’s Home Loan Administration, Federal Housing Administration, or the Veterans’ Administration, or a private mortgage insurer licensed to do business in the state of Rhode Island or made pursuant to the provisions of chapter 55 of title 42 shall be exempt from the requirements of this section.
(c)
The director, or the director’s designee, shall adopt any regulations that are necessary to carry out the provisions of this section.
History of Section.
P.L. 1995, ch. 82, § 47; P.L. 2008, ch. 238, § 2; P.L. 2008, ch. 309, § 2.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-2.1. - Mortgage billing — Payment allocation.

§ 19-9-2.1. Mortgage billing — Payment allocation.
All monthly billing by mortgagees to mortgagors must show the allocation of the mortgagor’s prior monthly payment to principal, interest, and escrow, if applicable.
History of Section.
P.L. 2006, ch. 636, § 1.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-3. - Mortgages — Appraisal fees.

§ 19-9-3. Mortgages — Appraisal fees.
(a)
Every lending institution that accepts an application for a mortgage loan that requires the payment of an appraisal fee, shall, prior to the payment of the appraisal fee, inform the applicant that if the mortgage is not approved, the appraisal fee may not be refunded to the customer.
(b)
Every lending institution that accepts an application for a mortgage loan and which, at the applicant’s expense, engages a real estate appraiser to conduct an appraisal of the subject real estate shall, upon written request, provide the applicant with a copy of the appraisal.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-3.1. - Mortgage loan appraisers — Relationship with lending institution.

§ 19-9-3.1. Mortgage loan appraisers — Relationship with lending institution.
(a)
Every lending institution, that accepts an application for any residential mortgage loan or any commercial mortgage loan that requires an appraisal in order to process the loan, is not permitted to use an appraisal company that is either owned by or has directors, stockholders, or employees of that lending institution.
(b)
Each lending institution doing business in the state pursuant to a charter or license issued under this title shall, upon request of the director of business regulation, or the director’s designee, disclose to the director those appraisal companies with which the lending institution has an ownership interest or which have directors, stockholders, or employees of the lending institution.
(c)
Any lending institution that maintains Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insurance protection for its deposits is exempt from the provisions of this section.
History of Section.
P.L. 2001, ch. 128, § 5.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-5. - Mortgagor to be offered title insurance.

§ 19-9-5. Mortgagor to be offered title insurance.
Every lending institution that accepts an application for a mortgage loan on property located in this state and that engages a title attorney to search the title of the subject real estate shall require the attorney to offer to the prospective mortgagor, at the usual premium rate, an owner’s policy title for the real estate. In the event the prospective mortgagor does not wish to purchase this title insurance, then the prospective mortgagor shall have the right to reject the offer of title insurance, provided the rejection is in writing and signed.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-6. - Lending institutions — Title attorney.

§ 19-9-6. Lending institutions — Title attorney.
(a)
Every lending institution that accepts an application for any residential mortgage loan or any commercial mortgage loan and requires that a title attorney search the title of the subject real estate, or requires a policy of title insurance, shall permit the prospective mortgagor to select a qualified title attorney or title insurance company of his, her, or its own choice to search the title of the subject real estate and to furnish title insurance. The lending institution shall not unreasonably disapprove a title insurance policy provided or paid for directly or indirectly by a borrower. The disapproval shall be deemed unreasonable if it is not based solely on reasonable standards uniformly applied, relating only to the extent of coverage required or the financial soundness of an insurer. The standards shall not discriminate against any particular insurer, nor shall the standards call for the disapproval of an insurance policy because the policy contained coverage in addition to that required. Acceptance of a title insurance company’s policy by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation shall be conclusive proof that the title insurance company meets the reasonable standards required by this section whether or not the borrower is applying for a residential or a commercial mortgage loan.
(b)
In the event the prospective mortgagor does not select a qualified title attorney or title insurance company, the prospective mortgagor shall sign a waiver permitting the lending institution to select an attorney. If any lending institution violates this section, an aggrieved party may file a complaint in the superior court of the county in which the aggrieved party shall dwell or has his, her, or its principal place of business, or Providence county, if the superior court of that county shall not be in session, or if the aggrieved party is a nonresident or has no principal place of business in this state, of any other county as may be agreed upon by the parties to the petition, and serve upon the lending institution a petition for an order of the court for the enforcement of this section, and the petition may request and the court shall have jurisdiction to grant, after notice and hearing, an order:
(1)
Granting injunctive relief to restrain the lending institution from engaging in the alleged or suspected violation;
(2)
Awarding reasonable attorney’s fees, costs, and expenses of the action; and
(3)
Granting any other relief, as may be required, until the person or lending institution complies with the requirements of this section.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-7. - Attorney’s opinions.

§ 19-9-7. Attorney’s opinions.
(a)
Except as provided in subsections (b) through (d), no lending institution making a loan in this state, or any attorney, agent, or representative for that lending institution, shall directly or indirectly, as a condition of a loan or advance, require any attorney representing a borrower in the loan transaction to give an opinion in relation to the validity, binding effect, or enforceability of any of the loan documents or the availability of remedies thereunder.
(b)
Subsection (a) shall not apply to any transaction in which the state, or any municipality in the state, or any department, agency, authority, or instrumentality of the state is the borrower.
(c)
Subsection (a) shall not apply to transactions involving the public sale or underwriting of bonds, debentures, or other securities.
(d)
Subsection (a) shall not prohibit, as part of a loan transaction, any requirement or condition with respect to opinions dealing with the authority and status of a borrower and matters relating to collateral.
(e)
No opinion obtained in violation of this section may be relied on for any purpose, and this opinion shall not give rise to, or form the basis for, any action against any attorney or firm rendering the opinion. Any lending institution, or attorney, agent, or representative of a lending institution, knowingly violating this section shall be subject to an action as may be lawfully imposed by the regulatory authority or court that has licensing or disciplinary authority over the lending institution, attorney, or other individual in question.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-8. - Lending institutions — Negative amortization loans.

§ 19-9-8. Lending institutions — Negative amortization loans.
Notwithstanding the provisions of any other laws, any person doing business under and as permitted by any law of this state or of the United States relating to lending institutions is authorized, in connection with the making of any loan, to contract for the accrual of interest, at a rate of interest, equal to or less than the note or contractual rate of interest, on unpaid interest accruing during previous billing or payment periods. Accrued and unpaid interest that is thus added to the principal balance of the loan for the purposes of further interest accrual shall, for the purposes of chapter 26 of title 6, be deemed to constitute additional net proceeds or additional principal of the loan, but shall for all other purposes and all other laws constitute interest on the original loan.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-9. - Mortgages issued — Payoffs.

§ 19-9-9. Mortgages issued — Payoffs.
(a)
Every lending institution or other entity that owns or services a loan, secured by a mortgage on property located in this state, shall:
(1)
Provide to the obligor, within three (3) business days after receipt of a written or telefaxed request, the exact payoff due the lender on the loan;
Notwithstanding the foregoing, if the payoff is requested for a loan that is forty-five (45) days or more delinquent in payment thereof or for any equity line of credit, the payoff shall be provided within five (5) business days of said request. Nothing contained herein shall prevent the institution from providing the exact payoff sooner than the deadline set forth herein;
Notwithstanding the foregoing, nonamortizing loans made by Rhode Island housing and mortgage finance corporation for the purpose of providing closing cost or down-payment assistance shall not be subject to the provisions of this section;
(2)
Permit the payoff to be made to it or, in the case of a mortgage owned or serviced by its subsidiary or affiliate or servicing agent, permit the payoff to be made at the subsidiary’s or affiliate’s principal place of business located in this state;
(3)
Accept as final interest due the lender on this payoff the interest calculated as of the business day full payment is made to the lending institution or servicing agent; and
(4)
Issue or provide to the mortgagor, or his or her agent or real estate closing officer, a discharge of the mortgage securing the loan within thirty (30) days after full payment of the payoff and final interest by separate instrument of release of the mortgage or as provided in § 34-26-3.
(b)
“Payoff statement” means any statement produced by a lending institution or servicer of a mortgage setting forth the amount of the unpaid balance on said mortgage loan, including principal, interest, and other charges assessed pursuant to the loan documentation of such mortgage and a statement of the interest on a per-diem basis with respect to the unpaid principal balance of the mortgage loan.
(c)
Notwithstanding the provisions of any law or regulation to the contrary, if a settlement agent complies with all of the terms of a payoff statement from the lending institution or servicer then the settlement agent shall not be responsible for any shortfall in the amount due to the mortgagee to pay off the mortgage loan in full. The settlement agent shall not be liable for any interest on funds tendered to said lending institution or servicer beyond the date that said funds were received by said lending institution or servicer even if said funds were insufficient to pay off the full balance of the mortgage loan.
History of Section.
P.L. 1995, ch. 82, § 47; P.L. 2004, ch. 172, § 1; P.L. 2004, ch. 403, § 1.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-10. - Disbursement requirements — Purchase money loans — Dwellings.

§ 19-9-10. Disbursement requirements — Purchase money loans — Dwellings.
Any lending institution providing a purchase money first mortgage loan on a property within this state containing less than four (4) living units shall make disbursement of the loan proceeds on or before the date upon which the conveyance and/or mortgage documents are to be recorded. The disbursement shall be in the form of cash, wired funds, government check, cashier’s check, or other immediately available funds. The disbursement shall be made to the agent responsible for settlement. If the disbursement is not as provided in this section, no interest shall be charged for the first thirty (30) days following the closing date.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-11. - Control of deposits by minors.

§ 19-9-11. Control of deposits by minors.
Every person not under guardianship who may make a deposit personally in any regulated institution may control, transfer, or withdraw the money so deposited, including accruing dividends or interest; notwithstanding, that the person at the time of exercising control or making the transfer or withdrawal, may be a minor.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-12. - Trust deposits — Death of trustee.

§ 19-9-12. Trust deposits — Death of trustee.
If a deposit is made with any regulated institution by one person in trust for another, the name and residence of the person for whom it is made shall be disclosed, and it shall be credited to the depositor as trustee for that person. If no other motive of the existence and terms of a trust has been given in writing to the regulated institution, the deposit, with the interest thereon, may, in case of the death of the trustee, be paid to the person for whom the deposit was made or to that person’s legal representative.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-13. - Checks of trustees.

§ 19-9-13. Checks of trustees.
When a deposit is made in a regulated institution in the name of two (2) or more persons as trustees, and a check is drawn upon the trust account by any trustee or trustees authorized by the other trustee or trustees to draw checks upon the trust account, neither the payee, nor the other holder, nor the bank is bound to inquire whether it is a breach of trust to authorize the trustee or trustees to draw checks upon the trust account, and the payee, or other holder, or the regulated institution is not liable unless the action of the payee or other holder or the regulated institution amounts to bad faith.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-14. - Deposits payable to survivor.

§ 19-9-14. Deposits payable to survivor.
When a deposit has been or shall be made in any regulated institution in the name of two (2) persons and payable to either or to the survivor, the deposit, or any part of the deposit, or any interest or dividend on the deposit, may be paid to either of those persons, whether the other is living or not, or to the guardian, executor, or administrator of the survivor, and the receipt of the person so paid shall be valid and sufficient release and discharge on account of the payment so made.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-15. - Pledge of passbook accounts.

§ 19-9-15. Pledge of passbook accounts.
Any deposit evidenced by a passbook in a regulated institution may be pledged by delivery of the passbook to the pledgee, with an order for its transfer; but this pledge shall not be effective to secure the deposit against any person other than the pledgor or his or her executor or administrator, unless an actual transfer of the deposit has been made upon the books of the regulated institution or the order for the transfer has been disclosed to, and a copy filed with, the regulated institution holding the deposit.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-16. - Replacement of lost or destroyed passbook.

§ 19-9-16. Replacement of lost or destroyed passbook.
When any person to whom a passbook, share certificate, membership certificate, stock certificate, deposit certificate, or other form of investment contract has been issued by any regulated institution, or by any insured-deposit-taking institution organized under the laws of the United States, states in writing, under oath, to the regulated institution or insured-deposit-taking institution organized under the laws of the United States that issued the book, certificate, or other form of investment contract, that the book, certificate, or other form of investment contract has not been hypothecated, but has been lost or destroyed, and shall make written application for the issue of a duplicate book, certificate, or other form of investment contract, then the regulated institution or insured-deposit-taking institution organized under the laws of the United States may issue a duplicate book, certificate, or other form of investment contract, and upon delivery, the regulated institution or insured-deposit-taking institution organized under the laws of the United States shall be discharged from all liability on account of the issue of the original book, certificate, or other form of investment contract. References in this section to an issuing regulated institution or insured-deposit-taking institution organized under the laws of the United States shall be taken to include any successor regulated institution or insured-deposit-taking institution organized under the laws of the United States.
History of Section.
P.L. 1995, ch. 82, § 47; P.L. 1997, ch. 98, § 8.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-17. - Charge-free savings accounts for minors.

§ 19-9-17. Charge-free savings accounts for minors.
Every regulated institution shall provide for charge-free savings accounts to persons aged seventeen (17) years or less; provided, however, that the provisions of this section shall not apply to those accounts having a balance of five hundred dollars ($500) or more.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-18. - Depositor identification.

§ 19-9-18. Depositor identification.
All regulated institutions shall, unless they have reason to doubt the validity of the identification, accept as sufficient identification for the cashing of checks and other banking transactions involving municipal, state, or federal funds in amounts less than seven hundred and fifty dollars ($750), duly authorized Rhode Island identification cards issued pursuant to the provision of § 3-8-6(b), the picture identification card issued by the division of elderly affairs, or an operator’s or chauffeur’s license issued pursuant to chapter 10 of title 31.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-19. - Checks on consumer deposit accounts to show date account was opened.

§ 19-9-19. Checks on consumer deposit accounts to show date account was opened.
(a)
All checks, drafts, or similar negotiable or non-negotiable instruments or orders of withdrawal that are drawn against funds held by a regulated institution, as defined in this title, shall clearly display on the face the month and year in which the account was opened. This section does not apply to temporary checks, drafts, similar negotiable or non-negotiable instruments, or orders of withdrawal.
(b)
For the purposes of this section, the term “consumer deposit account” means a demand or other similar deposit account established and maintained by a natural person with a regulated institution and operated primarily for personal, family, or household purposes.
(c)
No liability or penalty shall be imposed on any depositor, regulated institution, or printer for an unintentional failure to comply with this section.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-20. - Withdrawal from time deposit accounts.

§ 19-9-20. Withdrawal from time deposit accounts.
Except as required by federal law, no regulated institution or other insured-deposit-taking institutions organized under the laws of the United States shall assess any penalty for early withdrawal from any time deposit account if the owner of the account has died or been declared mentally incompetent by a court of competent jurisdiction.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-21. - Passbook savings accounts — Service charge prohibited.

§ 19-9-21. Passbook savings accounts — Service charge prohibited.
It shall be unlawful for any regulated institution or other insured-deposit-taking institution duly organized under the laws of the United States, to charge any service charge whatsoever for the holding of passbook savings deposits or accounts.
History of Section.
P.L. 1995, ch. 82, § 47.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-21.1. - Fee disclosure by banks, credit unions and other financial institutions.

§ 19-9-21.1. Fee disclosure by banks, credit unions and other financial institutions.
Any bank, credit union, or other financial institution doing business in this state shall display a notice that enumerates that there may be charges imposed by the institution of which the customer may not be aware.
History of Section.
P.L. 1999, ch. 338, § 1.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-22. - Violations by officers and employees.

§ 19-9-22. Violations by officers and employees.
Every president, director, officer, trustee, cashier, treasurer, teller, clerk, employee, or agent of any licensee licensed pursuant to chapter 14 of title 19, regulated institution, or other depository, who, without authority of the directors or trustees, issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, draft, bill of exchange, mortgage, judgment, or decree, or who makes any false entry in any book, report, or statement of the licensee, regulated institution, or other depository with intent in either case to injure or defraud the licensee, regulated institution, or other depository, or any company, corporation, or person, or to deceive any officer of the licensee, regulated institution, or other depository, the director of business regulation, or any agent appointed by the director to examine the affairs of that licensee, regulated institution, or other depository; and any person who with like intent aids or abets any officer, clerk, or agent in violation of this section, upon conviction, shall be fined not exceeding fifty thousand dollars ($50,000), or be imprisoned not exceeding twenty (20) years, or both.
History of Section.
P.L. 1995, ch. 82, § 47; P.L. 2000, ch. 236, § 1.
2023 Rhode Island General Laws › Title 19 - Financial Institutions › Chapter 19-9 - Community Obligations and Banking Offenses › Section 19-9-23. - Theft, embezzlement or misapplication by regulated institution, lending, credit and insurance officer or employee.

§ 19-9-23. Theft, embezzlement or misapplication by regulated institution, lending, credit and insurance officer or employee.
Every president, director, officer, trustee, cashier, treasurer, teller, clerk, or agent of any regulated institution, insurance company, or other depository who embezzles, abstracts, purloins, or willfully misapplies any of the moneys, funds, or credits entrusted to the custody or care of the regulated institution, insurance company, or other depository, and any person who, with like intent, aids or abets any officer, clerk, or agent in violation of this section, upon conviction, shall be fined not exceeding two hundred fifty thousand dollars ($250,000), or be imprisoned not exceeding twenty (20) years, or both.
History of Section.
P.L. 1995, ch. 82, § 47.