§ 19-14.1-10. Special exemptions. [Effective until January 1, 2027.]
(a) The licensing provisions of chapter 14 of this title shall not apply to:
(1) Nonprofit charitable, educational, or religious corporations or associations;
(2) Any person who makes less than six (6) loans in this state in any consecutive twelve-month
(12) period; there is no similar exemption from licensing for loan brokers for brokering
loans or acting as a loan broker;
(3) Any person acting as an agent for a licensee for the purpose of conducting closings
at a location other than that stipulated in the license;
(4) Regulated institutions and banks or credit unions organized under the laws of the
United States, or subject to written notice with a designated Rhode Island agent for
service of process in the form prescribed by the director, or the director's designee,
of any other state within the United States if the laws of the other state in which
such bank or credit union is organized 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 or credit union to engage
in the business of originating or brokering loans in the other state; no bank or credit
union duly organized under the laws of any other state within the United States may
receive deposits, pay checks, or lend money from any location within this state unless
such bank or credit union has received approval from the director, or the director's
designee, for the establishment of an interstate branch office pursuant to chapter 7 of title 19;
(5) Any natural person employee who is employed by a licensee when acting on the licensee's
behalf; provided that this exemption shall not apply to a mortgage loan originator
required to be licensed under § 19-14-2 or § 19-14.10-4; or
(6) A licensed attorney when performing loan closing services for a licensee or for an
entity identified in subdivision (4) above.
(b) The provisions of this chapter and chapter 14 of this title shall not apply to:
(1) Loans to corporations, joint ventures, partnerships, limited liability companies or
other business entities;
(2) Loans over twenty-five thousand dollars ($25,000) in amount to individuals for business
or commercial, as opposed to personal, family or household purposes;
(3) Loans principally secured by accounts receivable and/or business inventory;
(4) Loans made by a life insurance company wholly secured by the cash surrender value
of a life insurance policy;
(5) Education-purpose loans made by the Rhode Island health and educational building corporation
as vested in chapter 38.1 of title 45 of the Rhode Island student loan authority as vested in chapter 62 of title 16;
(6) The acquisition of retail or loan installment contracts by an entity whose sole business
in this state is acquiring them from federal banks receivers or liquidators;
(7) Notes evidencing the indebtedness of a retail buyer to a retail seller of goods, services
or insurance for a part or all of the purchase price;
(8) Any municipal, state or federal agency that makes, brokers, or funds loans or acts
as a lender or a loan broker. This exemption includes exclusive agents or exclusive
contractors of the agency specifically designated by the agency to perform those functions
on behalf of the agency and which has notified the director, in writing, of the exclusive
agency or contract; or
(9) Notes evidencing the indebtedness of a retail buyer to a retail motor vehicle dealer
that include as part of the amount financed, disclosed in accordance with 12 C.F.R. § 226.18 as amended, an amount representing negative equity related to the motor vehicle being
traded in as part of the purchase price of the motor vehicle being purchased.
(c) No license to make or fund loans, or to act as a lender or small loan lender shall
be required of any person who engages in deferred deposit transactions (commonly known
as "pay-day advance�) while holding a valid license to cash checks pursuant to chapter
14 of this title.