Rhode Island § 19-3-4 § 19-3-4. Loans on own shares.

Rhode Island Statutes

§ 19-3-4 — § 19-3-4. Loans on own shares.

Rhode Island § 19-3-4

Title 19Financial institutions

Ch. 19-3Powers and Operations

This text of Rhode Island § 19-3-4 (§ 19-3-4. Loans on own shares.) 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 § 19-3-4 (2026).

Text

§ 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 

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§ 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.