§ 19-9-8 - Lending institutions – Negative amortization loans. - Rhode Island Statutes

SECTION 19-9-8

   § 19-9-8  Lending institutions –Negative amortization loans. – Notwithstanding the provisions of any other laws, any person doing businessunder and as permitted by any law of this state or of the United Statesrelating to lending institutions is authorized in connection with the making ofany loan to contract for the accrual of interest, at a rate of interest equalto or less than the note or contractual rate of interest, on unpaid interestaccruing during previous billing or payment periods. Accrued and unpaidinterest that is thus added to the principal balance of the loan for thepurposes of further interest accrual shall for the purposes of chapter 26 oftitle 6 be deemed to constitute additional net proceeds or additional principalof the loan, but shall for all other purposes and all other laws constituteinterest on the original loan.