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

SECTION 19-3-2

   § 19-3-2  Loans for which financialinstitution is liable. – No financial institution shall make any loan or advance whereby it is liabledirectly, indirectly, or contingently for the repayment of the loan or advancein whole or in part. This restriction shall not impair the right of a financialinstitution:

   (1) To accept, under its letters of credit or otherauthorization, drafts or bills of exchange arising out of actual commercialtransactions or issued or drawn for agricultural, industrial, or commercialpurposes, at sight or on time; or

   (2) To purchase from and sell mortgage loans with or withoutrecourse to the Rhode Island housing and mortgage finance corporation or othersecondary market investors.