§ 19-3-4. Loans on own shares.
No stock-formed financial institution shall make a loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of its shares, unless the security or purchase is necessary to prevent loss upon a debt previously contracted in good faith; provided, however, that whenever a financial institution makes a valid loan or discount in good faith upon the general credit of specific security or collateral of a shareholder, other than the shares in the financial institution, nothing in this section shall be construed to abridge or modify any of the provisions of the bylaws of the financial institution, as affecting the transaction, giving it a lien upon, or any other right or remedy relating to or affecting, the stock of the shareholder. All stock so purchased or acquired by the financial institution in good faith shall, within one year after its purchase, be disposed of or sold.
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.