§ 19-12-13 - Agreements against interest of the financial institution or credit union. - Rhode Island Statutes

SECTION 19-12-13

   § 19-12-13  Agreements against interest ofthe financial institution or credit union. – No agreement which tends to diminish or defeat the interest of the financialinstitution or credit union and any asset acquired by the receiver acting in aproceeding under this chapter or by any person or entity acquiring all or anyof the interests or assets by a sale or other transfer approved by any order ofthe court entered in a receivership proceeding under this chapter, including(without limitation) loans made by the financial institution or credit union orany security therefor, shall be valid against the receiver or transferee unlessthe agreement – (1) is in writing, (2) was executed by the financialinstitution or credit union and any person claiming an adverse interestthereunder, including the obligor, contemporaneously with the acquisition ofthe assets by the financial institution or credit union, (3) was approved bythe governing body of the financial institution or credit union or its loan orother authorizing committee, which approval shall be reflected in the minutesof the board or committee, and (4) has been, continuously, from the time of itsexecution, an official record of the financial institution or credit union.