§ 19-9-7 - Attorney's opinions. - Rhode Island Statutes

SECTION 19-9-7

   § 19-9-7  Attorney's opinions. – (a) Except as provided in subsections (b) through (d), no lending institutionmaking a loan in this state or any attorney, agent or representative for thatlending institution shall directly or indirectly, as a condition of a loan oradvance, require any attorney representing a borrower in the loan transactionto give an opinion in relation to the validity, binding effect, orenforceability of any of the loan documents or the availability of remediesthereunder.

   (b) Subsection (a) shall not apply to any transaction inwhich the state, or any municipality in the state, or any department, agency,authority, or instrumentality of the state is the borrower.

   (c) Subsection (a) shall not apply to transactions involvingthe public sale or underwriting of bonds, debentures, or other securities.

   (d) Subsection (a) shall not prohibit, as part of a loantransaction, any requirement or condition with respect to opinions dealing withthe authority and status of a borrower and matters relating to collateral.

   (e) No opinion obtained in violation of this section may berelied on for any purpose, and this opinion shall not give rise to or form thebasis for any action against any attorney or firm rendering the opinion. Anylending institution, or attorney, agent or representative of a lendinginstitution knowingly violating this section shall be subject to an action asmay be lawfully imposed by the regulatory authority or court that has licensingor disciplinary authority over the lending institution, attorney or otherindividual in question.