Rhode Island § 19-3-2 § 19-3-2. Loans for which financial institution is liable.

Rhode Island Statutes

§ 19-3-2 — § 19-3-2. Loans for which financial institution is liable.

Rhode Island § 19-3-2

Title 19Financial institutions

Ch. 19-3Powers and Operations

This text of Rhode Island § 19-3-2 (§ 19-3-2. Loans for which financial institution is liable.) is published on Counsel Stack Legal Research, covering Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

R.I. Gen. Laws § 19-3-2 (2026).

Text

§ 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 mortgag

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§ 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.