§ 19-3-5 - Non-legal investments. - Rhode Island Statutes

SECTION 19-3-5

   § 19-3-5  Non-legal investments. – (a) Any financial institution or credit union may hold stocks, bonds, or othersecurities of a non-legal character acquired in settlements and reorganizationseffected to reduce or avoid losses on defaulted bonds and investments. Thesesecurities shall be sold within five (5) years after being acquired; provided,however, that the director or the director's designee shall have discretionarypower regarding the enforcement of the five (5) year limitation, and thesesecurities may be held after the expiration of the period of five (5) yearsuntil the director or the director's designee shall order the sale of thesesecurities.

   (b) An investment that was legal when acquired, but becauseof changed conditions has become of non-legal character may be held subject tothe same provisions as subsection (a).