Rhode Island § 6-27-5 § 6-27-5. Consumer notes.

Rhode Island Statutes

§ 6-27-5 — § 6-27-5. Consumer notes.

Rhode Island § 6-27-5

Title 6Commercial Law – General Regulatory Provisions

Ch. 6-27Truth in Lending and Retail Selling

This text of Rhode Island § 6-27-5 (§ 6-27-5. Consumer notes.) 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 § 6-27-5 (2026).

Text

§ 6-27-5. Consumer notes.
(a) If any contract between a retail seller and a retail buyer for the sale of consumer
            goods and services requires or involves the execution of a promissory note by a retail
            buyer in connection with an extension of credit by the retail seller, or by a creditor
            to whom the retail buyer was referred by the retail seller and to whom the retail
            seller regularly, as part of the ordinary conduct of its business and with the actual
            knowledge of the creditor, refers retail buyers for credit, the words "nonnegotiable
            consumer noteâ€� shall be placed prominently on the note and an assignee of a note with
            the words

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§ 6-27-5. Consumer notes.

(a) If any contract between a retail seller and a retail buyer for the sale of consumer goods and services requires or involves the execution of a promissory note by a retail buyer in connection with an extension of credit by the retail seller, or by a creditor to whom the retail buyer was referred by the retail seller and to whom the retail seller regularly, as part of the ordinary conduct of its business and with the actual knowledge of the creditor, refers retail buyers for credit, the words "nonnegotiable consumer noteâ€� shall be placed prominently on the note and an assignee of a note with the words "nonnegotiable consumer noteâ€� appearing prominently on the note shall take the note subject to the claims and defenses permitted under § 6A-3-306, irrespective of whether or not the assignee qualifies as a "holder in due courseâ€� as defined in § 6A-3-302. For the purposes of this section "consumer goodsâ€� means tangible personal property used or bought for use primarily for personal, family, or household purposes.

(b) A creditor who obtains a note from the maker in violation of this section shall be punished by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).

(c) If a note is obtained by a creditor from a maker in violation of this section, no finance, delinquency, collection, repossession, or refinancing charges may be recovered in any action or proceeding based on the contract for sale by the creditor and if the charges are recovered from a maker by a holder in due course, the maker may recover the charges from the creditor who violated the provisions of this section.

(d) The provisions of this section shall not apply to any notes executed in connection with any financing that is insured under federal housing administration regulations.