§ 19-3-2. Loans for which financial institution is liable.
No financial institution shall make any loan or advance whereby it is liable directly, indirectly, or contingently for the repayment of the loan or advance in whole or in part. This restriction shall not impair the right of a financial institution:
(1) To accept, under its letters of credit or other authorization, drafts or bills of exchange arising out of actual commercial transactions or issued or drawn for agricultural, industrial, or commercial purposes, at sight or on time; or
(2) To purchase from and sell mortgage loans with or without recourse to the Rhode Island housing and mortgage finance corporation or other secondary market investors.
History of Section.P.L. 1995, ch. 82, § 40.
Structure Rhode Island General Laws
Title 19 - Financial Institutions
Chapter 19-3 - Powers and Operations
Section 19-3-1. - Law generally applicable to financial institutions.
Section 19-3-2. - Loans for which financial institution is liable.
Section 19-3-3. - Maximum aggregate liability of one person or company.
Section 19-3-4. - Loans on own shares.
Section 19-3-5. - Non-legal investments.
Section 19-3-6. - Special investments.
Section 19-3-7. - Holding or ownership of real estate.
Section 19-3-8. - Prudent person rule.
Section 19-3-9. - Financial institutions and credit unions joining Federal Reserve System.
Section 19-3-10. - Membership in federal home loan banks.
Section 19-3-11. - Reserve requirements of the Federal Reserve System.
Section 19-3-12. - Authorized reserve agents.
Section 19-3-13. - Use of electronic devices and machines.
Section 19-3-13.1. - ATM cards.
Section 19-3-13.2. - Fee disclosures at automated teller machines.