§ 10-18-11 - Subsequent creditors. - Rhode Island Statutes

SECTION 10-18-11

   § 10-18-11  Subsequent creditors. –(a) All subsequent creditors who have obtained the receiver's approval prior totheir extension of credit may be included in the plan upon application to thecourt by the creditor, the receiver, or the debtor.

   (b) The court, upon application by a creditor to be includedin the plan, may include such creditors in the plan if it determines that theextension of credit to the debtor was reasonable. The court's criteria in theprocess of determining the reasonableness of a creditor's extension of creditshall include, but not be limited to, the following:

   (1) Amount of credit extended;

   (2) Purpose for which the credit was extended;

   (3) Terms upon which the credit was extended;

   (4) Debtor's ability to meet this extra financial obligationin light of his or her financial position under the plan.

   (c) If a subsequent secured creditor extends credit withoutthe receiver's approval, the secured creditor may reclaim or repossess thecollateral sold on security if the debtor defaults upon the contract of saleunless the retention of such collateral by the debtor is essential to thecontinuance of his or her employment upon reasonable terms and conditions. Insuch case, § 10-18-10(e) shall apply.