A N A C T
RELATING TO FINANCIAL INSTITUTIONS -- LENDERS AND LOAN BROKERS
It is enacted by the General Assembly as follows:
SECTION 1. Section 19-14.1-10 of the General Laws in Chapter 19-14.1 entitled "Lenders and Loan Brokers" is hereby amended to read as follows:
19-14.1-10. Special exemptions -- (a) The licensing provisions of chapter 14 shall not apply to:
(1) Nonprofit charitable, educational or religious corporations or associations;
(2) Any person who makes less than six (6) loans in this state in
an any consecutive twelve (12) month period; there is no similar exemption from licensing for loan brokers for brokering loans or acting as a loan broker; or
(3) Person(s) acting as an agent for a licensee for the purpose of conducting closings at a location other than that stipulated in the license.
(b) The provisions of chapter 14 and chapter 14.1 shall not apply to:
(1) Loans to corporations, joint ventures, partnerships, limited liability companies or other business entities;
(2) Loans over twenty-five thousand dollars ($25,000) in amount to individuals for business or commercial, as opposed to personal, family or household purposes;
(3) Loans principally secured by accounts receivable and/or business inventory;
(4) Loans made by a life insurance company wholly secured by the cash surrender value of a life insurance policy;
(5) Education-purpose loans made by the Rhode Island health and educational building corporation as vested in chapter 38.1 of title 45 of the Rhode Island student loan authority as vested in chapter 62 of title 16;
(6) The acquisition of retail or loan installment contracts by an entity whose sole business in this state is acquiring them from federal banks receivers or liquidators;
(7) Notes evidencing the indebtedness of a retail buyer to a retail seller of goods, services or insurance for a part or all of the purchase price; or
(8) Any state or federal agency which makes, brokers, or funds loans or acts as a lender or a loan broker. This exemption includes exclusive agents or exclusive contractors of the agency specifically designated by the agency to perform those functions on behalf of the agency and which has notified the director, in writing, of the exclusive agency or contract.
SECTION 2. This act shall take effect upon passage.