Chapter 339
2022 -- S 2794
Enacted 06/29/2022

A N   A C T
RELATING TO FINANCIAL INSTITUTIONS -- CREATION AND EXPANSION

Introduced By: Senator V. Susan Sosnowski

Date Introduced: March 24, 2022

It is enacted by the General Assembly as follows:
     SECTION 1. Section 19-2-12 of the General Laws in Chapter 19-2 entitled "Creation and
Expansion" is hereby amended to read as follows:
     19-2-12. Relocation of branches.
     Any financial institution or credit union may relocate a branch upon sixty (60) days prior
written notice to the director, or the director's designee, provided that the relocated branch is:
     (1) To be located within the same city or town as the existing branch; or
     (2) To be located within a one ten (10) mile radius of the existing branch; and
     (3) The existing branch will be closed upon construction and/or occupancy of the relocated
branch.
     SECTION 2. Section 19-12-1 of the General Laws in Chapter 19-12 entitled
"Receivership" is hereby amended to read as follows:
     19-12-1. Application for receivership.
     (a) The director, or the director's designee, is empowered immediately to take possession
of any financial institution, or credit union, or other licensee under this title and its assets if, upon
examination, any financial institution or credit union, which has or has not invoked the
conservatorship provisions or the voluntary liquidation provisions of this title, appears to be
insolvent by reason of:
     (1) The financial institution's, or credit union's, or other licensee's financial condition is
such that the sum of the financial institution's, or credit union's, or other licensee's debts are greater
than all of the financial institution's, or credit union's, or other licensee's property at a fair valuation,
exclusive of property transferred, concealed, or removed with intent to hinder, delay, or defraud
the financial institution's, or credit union's, or other licensee's creditors or because it is generally
not paying or is unable to pay its debts as they become due; or
     (2) The financial institution's, or credit union's, or other licensee's condition is such as to
render the continuance of its business hazardous to the public or to those having funds in its
custody; or
     (3) The financial institution, or credit union, or other licensee has failed to maintain
adequate deposit insurance as required by this title; or
     (4) The financial institution, or credit union, or other licensee has failed to remedy unsafe
or unsound practices in violation of a cease and desist order.
     (b) The director may apply to the superior court for the appointment of the director, or one
of the director's deputies as receiver. , or both, or in In the case when a financial institution's or
credit union's deposits are insured by the Federal Deposit Insurance Corporation, the National
Credit Union Administration, or any other agency or instrumentality of the United States that
insures the deposits of the financial institution or credit union, as a receiver or receivers of the
financial institution, or credit union, or other licensee, and for the receiver may request an injunction
to restrain the financial institution, or credit union, or other licensee under this title, in whole or in
part, from further proceeding with its business, and the court shall have jurisdiction in equity of the
application.
     SECTION 3. Sections 19-14-1, 19-14-3, 19-14-6, 19-14-10, 19-14-16, 19-14-22, 19-14-24
and 19-14-25 of the General Laws in Chapter 19-14 entitled "Licensed Activities" are hereby
amended to read as follows:
     19-14-1. Definitions.
     Unless otherwise specified, the following terms shall have the following meanings
throughout chapters 14, 14.1, 14.2, 14.3, 14.4, 14.6, 14.8, 14.10, and 14.11 of this title:
     (1) "Bona fide employee" shall mean an employee of a licensee who works under the
oversight and supervision of the licensee.
     (2) "Check" means any check, draft, money order, personal money order, or other
instrument for the transmission or payment of money. For the purposes of check cashing, travelers
checks or foreign denomination instruments shall not be considered checks. "Check cashing" means
providing currency for checks.
     (3) "Check casher" means a person or entity who or that, for compensation, engages, in
whole or in part, in the business of cashing checks.
     (4) "Currency transmission" means engaging in the business of any of the following:
     (i) Sale or issuance of payment instruments or stored value primarily for personal, family,
or household purposes; or
     (ii) Receiving money or monetary value for transmission or holding funds incidental to
transmission within the United States or to locations abroad by any and all means, including
payment instrument, stored value, wire, facsimile, or electronic transfer, primarily for personal,
family, or household purposes. This includes maintaining control of virtual currency or transactions
in virtual currency on behalf of others.
     (5) "Deferred-deposit transaction" means any transaction, such as those commonly known
as "payday loans," "payday advances," or "deferred-presentment loans," in which a cash advance
is made to a customer in exchange for the customer's personal check or in exchange for the
customer's authorization to debit the customer's deposit account and where the parties agree either
that the check will not be cashed or deposited, or that the customer's deposit account will not be
debited until a designated future date.
     (6) [Deleted by P.L. 2019, ch. 226, § 1 and P.L. 2019, ch. 246, § 1.]
     (7) "Deliver" means to deliver a check to the first person who, in payment for the check,
makes, or purports to make, a remittance of, or against, the face amount of the check, whether or
not the deliverer also charges a fee in addition to the face amount and whether or not the deliverer
signs the check.
     (8) "Insurance premium finance agreement" means an agreement by which an insured, or
prospective insured, promises to pay to an insurance premium finance company the amount
advanced, or to be advanced, under the agreement to an insurer or to an insurance producer, in
payment of a premium, or premiums, on an insurance contract, or contracts, together with interest
and a service charge, as authorized and limited by this title.
     (9) "Insurance premium finance company" means a person or entity engaged in the
business of making insurance premium finance agreements or acquiring insurance premium finance
agreements from other insurance premium finance companies.
     (10)(i) "Lender" means any person who makes or funds a loan within this state with the
person's own funds, regardless of whether the person is the nominal mortgagee or creditor on the
instrument evidencing the loan;
     (ii) A loan is made or funded within this state if any of the following conditions exist:
     (A) The loan is secured by real property located in this state;
     (B) An application for a loan is taken by an employee, agent, or representative of the lender
within this state;
     (C) The loan closes within this state;
     (D) A retail installment contract as defined herein is created;
     (D)(E) The loan solicitation is done by an individual with a physical presence in this state;
or
     (E)(F) The lender maintains an office in this state.;
     (iii) The term "lender" shall also include any person engaged in a transaction whereby the
person makes or funds a loan within this state using the proceeds of an advance under a line of
credit over which proceeds the person has dominion and control and for the repayment of which
the person is unconditionally liable. This transaction is not a table-funding transaction. A person is
deemed to have dominion and control over the proceeds of an advance under a line of credit used
to fund a loan regardless of whether:
     (A) The person may, contemporaneously with, or shortly following, the funding of the
loan, assign or deliver to the line of credit lender one or more loans funded by the proceeds of an
advance to the person under the line of credit;
     (B) The proceeds of an advance are delivered directly to the settlement agent by the line-
of-credit lender, unless the settlement agent is the agent of the line-of-credit lender;
     (C) One or more loans funded by the proceeds of an advance under the line of credit is
purchased by the line-of-credit lender; or
     (D) Under the circumstances, as set forth in regulations adopted by the director, or the
director's designee, pursuant to this chapter.
     (11) "Licensee" means any person licensed under this chapter.
     (12) "Loan" means any advance of money or credit including, but not limited to:
     (i) Loans secured by mortgages;
     (ii) Insurance premium finance agreements;
     (iii) The purchase or acquisition of retail installment contracts or advances to the holders
of those contracts;
     (iv) Educational loans;
     (v) Any other advance of money; or
     (vi) Any transaction, such as those commonly known as "payday loans," "payday
advances," or "deferred-presentment loans," in which a cash advance is made to a customer in
exchange for the customer's personal check, or in exchange for the customer's authorization to debit
the customer's deposit account, and where the parties agree either, that the check will not be cashed
or deposited, or that customer's deposit account will not be debited, until a designated future date.
     (13) "Loan broker" means any person or entity who or that, for compensation or gain, or
in the expectation of compensation or gain, either directly or indirectly, solicits, processes,
negotiates, places, or sells a loan within this state for others in the primary market, or offers to do
so. A loan broker shall also mean any person who is the nominal mortgagee or creditor in a table-
funding transaction. A loan is brokered within this state if any of the following conditions exist:
     (i) The loan is secured by real property located in this state;
     (ii) An application for a loan is taken or received by an employee, agent, or representative
of the loan broker within this state;
     (iii) The loan closes within this state;
     (iv) The loan solicitation is done by an individual with a physical presence in this state; or
     (v) The loan broker maintains an office in this state.
     (14) "Loan-closing services" means providing title services, including title searches, title
examinations, abstract preparation, insurability determinations, and the issuance of title
commitments and title insurance policies, conducting loan closings, and preparation of loan-closing
documents when performed by, or under the supervision of, a licensed attorney, licensed title
agency, or licensed title insurance company.
     (15) "Loan solicitation" shall mean an effectuation, procurement, delivery and offer, and
or advertisement of a loan. Loan solicitation also includes providing or accepting loan applications
and assisting persons in completing loan applications and/or advising, conferring, or informing
anyone regarding the benefits, terms and/or conditions of a loan product or service. Loan
solicitation does not include loan processing or loan underwriting as defined in this section. Loan
solicitation does not include telemarketing that is defined, for purposes of this section, to mean
contacting a person by telephone with the intention of collecting such person's name, address, and
telephone number for the sole purpose of allowing a mortgage loan originator to fulfill a loan
inquiry.
     (16) "Loan underwriting" shall mean a loan process that involves the analysis of risk with
respect to the decision whether to make a loan to a loan applicant based on credit, employment,
assets, and other factors, including evaluating a loan applicant against a lender's various lending
criteria for creditworthiness, making a determination for the lender as to whether the applicant
meets the lender's pre-established credit standards, and/or making a recommendation regarding
loan approval.
     (17) "Monetary value" means a medium of exchange, whether or not redeemable in fiat
currency.
     (18) "Mortgage loan" means a loan secured in whole, or in part, by real property located in
this state.
     (19) "Mortgage loan originator" has the same meaning set forth in § 19-14.10-3(6).
     (20) "Nationwide Multistate Licensing System" means a system involving more than one
state, the District of Columbia, or the Commonwealth of Puerto Rico and that is established to
facilitate the sharing of regulatory information and the licensing, application, reporting, and
payment processes, by electronic or other means, for mortgage lenders and loan brokers and other
licensees required to be licensed under this chapter.
     (21) "Natural person employee" shall mean any natural person performing services as a
bona fide employee for a person or entity licensed under § 19-14-1 et seq., in return for a salary,
wage, or other consideration, where such salary, wage, or consideration is reported by the licensee
on a federal form W-2 payroll record. The term does not include any natural person or business
entity performing services for a person licensed under the provisions of Rhode Island general laws
in return for a salary, wage, or other consideration, where such salary, wage, or consideration is
reported by the licensee on a federal form 1099.
     (22) "Negative equity" means the difference between the value of an asset and the
outstanding portion of the loan taken out to pay for the asset, when the latter exceeds the former
amount.
     (23) "Negotiates" shall mean, with respect to a loan, to confer directly with, or offer advice
directly to, a loan applicant or prospective loan applicant for a loan product or service concerning
any of the substantive benefits, terms, or conditions of the loan product or service.
     (24) "Nonprofit organization" means a corporation qualifying as a 26 U.S.C. § 501(c)(3)
nonprofit organization, in the operation of which no member, director, officer, partner, employee,
agent, or other affiliated person profits financially other than receiving reasonable salaries if
applicable.
     (25) "Operating subsidiary" shall mean a majority-owned subsidiary of a financial
institution or banking institution that engages only in activities permitted by the parent financial
institution or banking institution.
     (26) "Oversight and supervision of the licensee" shall mean that the licensee provides
training to the employee, sets the employee's hours of work, and provides the employee with the
equipment and physical premises required to perform the employee's duties, and supervises the
services provided by the employee to the licensee.
     (27) "Personal money order" means any instrument for the transmission or payment of
money in relation to which the purchaser or remitter appoints, or purports to appoint, the seller as
his or her agent for the receipt, transmission, or handling of money, whether the instrument is signed
by the seller, or by the purchaser, or remitter, or some other person.
     (28) "Primary market" means the market in which loans are made to borrowers by lenders,
whether or not through a loan broker or other conduit.
     (29) "Principal owner" means any person or entity who or that owns, controls, votes, or has
a beneficial interest in, directly or indirectly, ten percent (10%) or more of the outstanding capital
stock and/or equity interest of a licensee.
     (30) "Processes" shall mean, with respect to a loan, any of a series of acts or functions,
including the preparation of a loan application and supporting documents, performed by a person
that leads to, or results in, the acceptance, approval, denial, and/or withdrawal of a loan application,
including, without limitation, the rendering of services, including loan underwriting, obtaining
verifications, credit reports or appraisals, communicating with the applicant and/or the lender or
loan broker, and/or other loan processing and origination services, for consideration by a lender or
loan broker. Loan processing does not include the following:
     (i) Providing loan closing services;
     (ii) Rendering of credit reports by an authorized credit reporting agency; and
     (iii) Rendering of appraisal services.
     (31) "Provisional employee" means a natural person who, pursuant to a written agreement
between the natural person and a wholly owned subsidiary of a financial holding company, as
defined in the Bank Holding Company Act of 1956 (12 U.S.C. § 1841 et seq.), as amended, a bank-
holding company, savings-bank-holding company, or thrift-holding company, is an exclusive agent
for the subsidiary with respect to mortgage loan originations and the subsidiary: (a) Holds a valid
loan broker's license; and (b) Enters into a written agreement with the director, or the director's
designee, to include:
     (i) An "undertaking of accountability," in a form prescribed by the director, or the director's
designee, for all of the subsidiary's exclusive agents to include full-and-direct financial and
regulatory responsibility for the mortgage loan originator activities of each exclusive agent as if
said exclusive agent were an employee of the subsidiary;
     (ii) A business plan, to be approved by the director, or the director's designee, for the
education of the exclusive agents, the handling of consumer complaints related to the exclusive
agents, and the supervision of the mortgage loan origination activities of the exclusive agents; and
     (iii) A restriction of the exclusive agents' mortgage loan originators' activities to loans to
be made only by the subsidiary's affiliated bank.
     (32) "Remote location" means a location meeting the requirements of § 19-14-25(b) at
which an employee of a licensee may provide services for the licensee notwithstanding that such
the location differs from the place of business named in the license or a branch certificate issued to
the licensee.
     (33) "Retail installment contract" means any security agreement negotiated or executed in
this state, or under the laws of this state, including, but not limited to, any agreement in the nature
of a mortgage, conditional sale contract, or any other agreement whether or not evidenced by any
written instrument to pay the retail purchase price of goods, or any part thereof, in installments over
any period of time and pursuant to which any security interest is retained or taken by the retail seller
for the payment of the purchase price, or any part thereof, of the retail installment contract.
     (32)(34) "Sell" means to sell, to issue, or to deliver a check.
     (33)(35) "Servicing" means receiving a scheduled, periodic payment from a borrower,
pursuant to the terms of a loan, including amounts for escrow accounts, and making the payments
to the owner of the loan or other third party of principal and interest and other payments with respect
to the amounts received from the borrower as may be required pursuant to the terms of the servicing
loan documents or servicing contract. In the case of a home equity conversion mortgage or a reverse
mortgage, servicing includes making payment to the borrower.
     (34)(36) "Simple interest" means interest computed on the principal balance outstanding
immediately prior to a payment for one plus the actual number of days between payments made on
a loan over the life of a loan.
     (35)(37) "Small loan" means a loan of less than five thousand dollars ($5,000), not secured
by real estate, made pursuant to the provisions of chapter 14.2 of this title.
     (36)(38) "Small-loan lender" means a lender engaged in the business of making small loans
within this state.
     (37)(39) "Stored value" means monetary value representing a claim against the issuer that
is stored on an electronic or digital medium and is evidenced by an electronic or digital record, and
that is intended and accepted for use as a means of redemption for money or monetary value or
payment for goods or services. The term does not include stored value that is redeemable by the
issuer exclusively in goods or services; stored value that is redeemable exclusively in goods or
services limited to transactions involving a defined merchant or location or set of locations, such
as a specific retailer or retail chain, college campus, or program points, miles, or other units issued
in connection with a customer affinity or rewards program, even if there is a secondary market for
the stored value.
     (38)(40) "Table-funding transaction" means a transaction in which there is a
contemporaneous advance of funds by a lender and an assignment by the mortgagee or creditor of
the loan to the lender.
     (39)(41) "Third-party loan servicer" means a person or entity who or that, directly or
indirectly, engages in the business of servicing a loan secured by residential real estate located in
Rhode Island, for a personal, family, or household purpose, owed or due, or asserted to be owed or
due, another, or a person or entity that owns the servicing rights to a loan secured by residential
real estate located in Rhode Island whether or not that owner services the loan themselves or
contracts with another person or entity for the servicing.
     (40)(42) "Virtual currency":
     (i) Means a digital representation of value that:
     (A) Is used as a medium of exchange, unit of account, or store of value; and
     (B) Is not legal tender, whether or not denominated in legal tender; and
     (ii) Does not include:
     (A) A transaction in which a merchant grants, as part of an affinity or rewards program,
value that cannot be taken from or exchanged with the merchant for legal tender, bank credit, or
virtual currency;
     (B) A digital representation of value issued by or on behalf of a publisher and used solely
within an online game, game platform, or family of games sold by the same publisher or offered
on the same game platform;
     (C) Native digital token used in a proprietary blockchain service platform; or
     (D) A gift certificate; store gift card; general-use prepaid card; or loyalty, award, or
promotional gift card, as these terms are defined in federal Regulation E, 12 C.F.R. 1005.20(a),
without giving effect to any exception as specified in 31 C.F.R. 1010.100(kkk) or any card, code
or device, or other device that can add funds to those products.
     (41)(43) "Writing" means hard-copy writing or electronic writing that meets the
requirements of § 42-127.1-2(7).
     19-14-3. Application for license.
     (a) The application for a license shall be in the form prescribed by the director and shall
contain the name and address or addresses where the business of the applicant is located and if the
applicant is a partnership, association, corporation, or other form of business organization, the
names and addresses of each member, director, and principal officer thereof or any individual
acting in the capacity of the manager of an office location. Such The application shall also include
a description of the activities of the applicant, in such detail and for such periods as the director
may require, as well as such further information as the director may require. The director may
require a background investigation of each applicant for a license by means of fingerprint checks
pursuant to §§ 19-14-7 and 42-14-14, utilizing the Federal Bureau of Investigation, or other agency
as determined by the director for state and national criminal history record checks. If the applicant
is a partnership, association, corporation, or other form of business organization, the director may
require a background investigation by means of fingerprint checks on each member, director,
trustee, or principal officer of such the applicant and any individual acting in the capacity of the
manager of an office location. The director will determine by rule those items of information
appearing on a criminal records check that will constitute disqualifying information and therefore
render the applicant ineligible for licensing under this chapter in accordance with the provisions of
§ 19-14-7. Receipt of criminal history record information by a private entity is prohibited. Each
application for a license shall be accompanied by an investigation fee. The applicant at the time of
making application shall pay to the director, or the director's designee, department a fee equal to
the annual license fee as provided in this chapter and the sum of one half (½) of the annual license
fee as a fee for investigating the application. If the application for license is approved, the applicant
shall pay a fee equal to the annual license fee as provided in this chapter. The license shall be
continuous and the license fee shall cover the period through December 31 of each year. The annual
license fee for any application approved after November 1 of any given year shall satisfy the annual
license fee requirement through the end of the next succeeding calendar year ending December 31.
The director, or the director's designee, is authorized to participate in a multi-state multistate
licensing system for licensees. The director may establish requirements for participation by an
applicant for a license or a person licensed under this chapter. Any such requirements that may be
established by the director shall be published on the website of the department of business
regulation. Upon implementation, participation by an applicant for a license or by a person licensed
under the provisions of this chapter shall be mandatory. The applicant may be required to an
additional fee for a license or other participation in such multi-state multistate licensing system.
     (b) [Reserved].
     (c) [Reserved].
     (d) Any license issued under the provisions of former § 5-66-2 shall remain in full force
and effect until its expiration and shall be subject to the provisions of this chapter.
     (e) An applicant for issuance of a mortgage loan originator license shall file with the
director, or the director's designee, evidence acceptable to the director, or the director's designee,
that said applicant has complied with the provisions of §§ 19-14.10-5, 19-14.10-7 and 19-14.10-8.
     19-14-6. Bond of applicant.
     (a) An applicant for any license shall file with the director, or the director's designee, a
bond to be approved by him or her in which the applicant shall be the obligor.
     (b) The amount of the bond shall be as follows:
     (1) Small-loan lenders, the sum of ten thousand dollars ($10,000);
     (2) Loan brokers, the sum of twenty thousand dollars ($20,000);
     (3) Lenders, the sum of fifty thousand dollars ($50,000);
     (4) Currency transmission licensees, the sum of fifty thousand dollars ($50,000). If a
currency transmission licensee shows that a surety bond is not generally available in this state at a
commercially reasonable cost, the department may accept an alternative form of security;
     (5) Check-cashing licensees who accept checks for collection with deferred payment or
deferred deposit, the sum of fifty thousand dollars ($50,000) subject to a maximum of one hundred
and fifty thousand dollars ($150,000) when aggregated with agent locations;
     (6) [Deleted by P.L. 2019, ch. 226, § 1 and P.L. 2019, ch. 246, § 1.]
     (7) [Deleted by P.L. 2019, ch. 226, § 1 and P.L. 2019, ch. 246, § 1.]
     (8) Each debt-management services registrant, the amount provided in § 19-14.8-13;
     (9) Each third-party loan servicer, the sum of fifty thousand dollars ($50,000); or
     (10) If a currency transmission licensee shows that a surety bond is not generally available
in this state at a commercially reasonable cost, the department may accept an alternative form of
security. Each debt collector, the sum of fifty thousand dollars ($50,000).
     (c) The bond shall run to the state for the use of the state and of any person who may have
cause of action against the obligor of the bond under the provisions of this title. The bond shall be
perpetual and shall be conditioned upon the obligor faithfully conforming to, and abiding by, the
provisions of this title and of all rules and regulations lawfully made, and the obligor will pay to
the state and to any person any and all money that may become due or owing to the state or to the
person from the obligor under, and by virtue of, the provisions of this title.
     (d) [Deleted by P.L. 2019, ch. 226, § 1 and P.L. 2019, ch. 246, § 1.]
     (e) The bond shall remain in force and effect until the surety is released from liability by
the director, or the director's designee, or until the bond is cancelled by the surety. The surety may
cancel the bond and be released from further liability under the bond upon receipt by the director,
or the director's designee, of notice in a manner satisfactory to the director, including, but not
limited to, for documentation purpose of the cancellation of the bond at least thirty (30) days in
advance of the cancellation of the bond. The cancellation shall not affect any liability incurred or
accrued under the bond before the termination of the thirty-day (30) period.
     (f) Upon receipt of any notice of cancellation, the director may provide notice to the
licensee requiring reinstatement or replacement of the bond. Unless the bond is reinstated by the
surety, or a satisfactory replacement bond is filed with the director prior to the cancellation of the
original bond, the license shall be suspended. The licensee will be provided notice of the suspension
and may request a hearing within thirty (30) days. If the licensee does not request a hearing, the
director, or director's designee, shall issue an order revoking the license for failure to comply with
this section.
     19-14-10. Attorney for service of process Agent for service of process.
     (a) Every licensee shall appoint, and thereafter maintain, in this state a resident attorney
agent with authority to accept process for the licensee in this state, including the process of
garnishment.
     (1) The appointment shall be filed with the director, or the director's designee, in whatever
format he or she directs electronically through the Nationwide Multistate Licensing System. The
power of attorney designation of an agent shall provide all contact information, including the
business address, street, and number, if any, of the resident attorney agent. Thereafter, if the resident
attorney agent changes his or her business address or other contact information, he or she the
licensee shall, within ten (10) days after any change, file in the office of the director, or the director's
designee, electronically through the Nationwide Multistate Licensing System notice of the change
setting forth the attorney's agent's current business address or other contact information.
     (2) If the resident attorney agent dies, resigns, or leaves the state, the licensee shall make a
new appointment and file the power of attorney in the office of the director, or the director's
designee new appointment electronically through the Nationwide Multistate Licensing System. The
power of attorney original designation shall not be revoked until this power of attorney new
appointment shall have been given to some other competent person resident in this state and filed
with the director, or the director's designee department.
     (3) Service of process upon the resident attorney agent shall be deemed sufficient service
upon the licensee.
     (4) Any licensee who fails to appoint a resident attorney agent and file the power of attorney
in the office of the director, or the director's designee, as above provided for appointment
electronically through the Nationwide Multistate Licensing System, or fails to replace a resident
attorney agent for a period of thirty (30) days from vacancy, shall be liable for a penalty not
exceeding five hundred dollars ($500) and shall be subject to suspension or revocation of the
license.
     (5) Upon the filing of any power of attorney appointment required by this section, a fee of
twenty-five dollars ($25.00) shall be paid to the director for the use of the state.
     (6) Any licensee that is a corporation and complies with the provisions of chapter 1.2 of
title 7 is exempt from the power of attorney filing requirements of this section. Any licensee that is
a limited partnership or limited liability company and complies with the provisions of chapters 13
and 16 of title 7 is exempt from the power of attorney requirements of this section.
     (b) Any process, including the process of garnishment, may be served upon the director, or
the director's designee, as agent of the licensee in the event that no resident attorney agent can be
found upon whom service can be made, or in the event that the licensee has failed to designate a
resident attorney agent as required, and process may be served by leaving a copy of the process
with a fee of twenty-five dollars ($25.00) which shall be included in the taxable costs of the suit,
action, or proceeding, in the hands of the director, or the director's designee. This manner of service
upon the licensee shall be sufficient, provided that notice of service and a copy of the process shall
be immediately sent by certified mail by the plaintiff, or the plaintiff's attorney of record, to the
licensee at the latest address filed with the director, or the director's designee. If the licensee has
not filed his or her address pursuant to this chapter, notice of service shall be given in any manner
that the court in which the action is pending may order as affording the licensee reasonable
opportunity to defend the action or to learn of the garnishment. Nothing contained in this section
shall limit or affect the right to serve process upon a licensee in any other manner now or hereafter
permitted by law.
     19-14-16. Surrender of license.
     Any licensee may surrender any license or branch certificate(s) by delivering to the
director, or the director's designee, written electronic notice through the Nationwide Multistate
Licensing System surrendering the license or branch certificate(s). The surrender shall not affect
the licensee's civil or criminal liability for acts committed prior to the surrender. Written Electronic
notice through the Nationwide Multistate Licensing System of any surrender must be filed with the
director, or the director's designee, within thirty (30) days of the termination of the business
authorized by this chapter at the surrendered location. The surrender of any license does not affect
the licensee's requirement to file an annual report with the fifty-five dollars dollar ($55.00) filing
fee. This report shall be filed within thirty (30) days of the surrender of the license. The licensee
shall give written electronic notification through the Nationwide Multistate Licensing System to
the director, or the director's designee, within twenty-four (24) hours from termination of business.
     19-14-22. Reporting requirements.
     (a) Each licensee shall annually, on or before March 31, file a report with the director, or
the director's designee, on a quarterly basis, giving any relevant information that the director, or the
director's designee, may reasonably require concerning the business and operations during the
preceding calendar year reporting period of each licensed place of business conducted by the
licensee within the state. The report shall be made under oath and shall be in a form prescribed by
the director, or the director's designee submitted through the Nationwide Mortgage Licensing
System and attested to by the entity. To the extent that the Nationwide Mortgage Licensing System
does not require submission of quarterly reports of condition, each licensee shall, annually, on or
before March 31, file a report with the director, or the director's designee, giving any relevant
information that the director, or the director's designee, may reasonably require concerning the
business and operations during the preceding calendar year of each licensed place of business
conducted by the licensee within the state. At the time of filing each report renewal of the license,
the sum of fifty-five dollars ($55.00) per license and fifty-five dollars ($55.00) per branch
certificate shall be paid by the licensee to the director for the use of the state. Any licensee who or
that shall delay transmission of any report required by the provisions of this title beyond the limit,
unless additional time is granted, in writing, for good cause, by the director, or the director's
designee, shall pay a penalty of twenty-five dollars ($25) for each day of the delay. In lieu of a
report by any licensed mortgage loan originator, the director, or the director's designee, may accept
a report by the licensed lender or licensed loan broker who or that employed the licensed mortgage
loan originator for the activities of the licensed mortgage loan originator while employed by such
lender or loan broker during the applicable calendar year.
     (b) Any licensee shall, within twenty-four (24) hours after actual knowledge, notify the
director, or the director's designee, in writing, of the occurrence of any of the following events: the
institution of bankruptcy, receivership, reorganization, or insolvency proceedings regarding a
licensee; the institution of any adverse government action against a licensee; or any felony
indictment or conviction of any licensee or any officers, directors, owners, employees, members,
or partners thereof, as the case may be.
     (c) Each mortgage loan originator licensee shall, on or before March 31, 2010, and every
March 31st thereafter, file with the director, or the director's designee, evidence acceptable to the
director, or the director's designee, that said loan originator licensee has filed with the Nationwide
Mortgage Licensing System and Registry a report of condition, which shall be in such form and
shall contain such information as the Nationwide Mortgage Licensing System and Registry may
require.
     (d) Both the mortgage loan originator and his or her licensed employer shall promptly
notify the director, or the director's designee, in writing, within fifteen (15) business days of the
termination of employment or services of a mortgage loan originator.
     19-14-24. Other business in same place Tying with other business.
     No licensee shall conduct any business under this title within any office or place of business
in which any other business is solicited or engaged, except as the director, or the director's designee,
may authorize, in writing. Approval shall not be unreasonably withheld if the director, or the
director's designee, finds that the character of the other business is such that the granting of the
authority would not evade the provisions of this chapter condition any sale on the requirement that
the consumer purchase any other product or service from a specified provider including those
providers with whom the licensee is sharing office space.
     19-14-25. Transactions and place of business limited by license Transactions and
place of business limited by license -- Remote locations.
     (a) No licensee shall transact the business provided for by this chapter under any other
name or at any other place of business than that named in the license or branch certificate, unless
that place is for the exclusive convenience of the customer or meets the requirements for a remote
location. The fact that closings occur at a place other than a licensed place of business shall not be
deemed to be a violation of this section.
     (b) Notwithstanding anything to the contrary under this chapter or chapter 14.10 of this
title 19, employees of a licensee may perform services for the licensee or act as a mortgage loan
originator from a remote location subject to each of the following requirements:
     (1) The employee is subject to the supervision of the licensee;
     (2) The remote location is the employee's residence or other location identified in the
records of the licensee and is within a reasonable distance of a place of business named in the
licensee's license or branch certificate, as established by regulations adopted by the director or the
director's designee;
     (3) The licensee has written policies and procedures for supervision of, and employs
appropriate risk-based monitoring and oversight process of work performed by, employees working
from remote locations;
     (4) Access to the licensee's computer platforms and to customer information is in
accordance with the licensee's comprehensive written information security plan. The licensee must
maintain appropriate safeguards for licensee and consumer data, information, and records,
including the use of secure virtual private networks ("VPNs") where appropriate;
     (5) No in-person customer interaction occurs at a remote location, and the licensee will not
designate the remote location to consumers or customers as a business location unless the remote
location is properly licensed as a branch;
     (6) Physical records related to the licensee's business, including consumer information, are
not maintained at the remote location;
     (7) The licensee must ensure consumer and licensee information and records remain
accessible and available for regulatory oversight and exams; and
     (8) The licensee must provide training to keep all conversations about, and with, consumers
conducted from a remote location confidential, as if conducted from a licensed commercial
location, and to ensure remote employees work in an environment conducive and appropriate to
that privacy.
     (c) A remote location shall not be considered a branch of the licensee; however, activities
conducted at a remote location shall be subject to examination under this chapter and § 19-14.10-
5.
     (d) The director, or the director's designee, shall have the authority to promulgate rules to
establish requirements and standards relating to remote locations.
     SECTION 4. Sections 19-14.10-3, 19-14.10-4, 19-14.10-8, 19-14.10-10 and 19-14.10-21
of the General Laws in Chapter 19-14.10 entitled "An Act Adopting the Federal Secure and Fair
Enforcement for Mortgage Licensing Act of 2009" are hereby amended to read as follows:
     19-14.10-3. Definitions.
     For purposes of this chapter, the following definitions shall apply:
     (1) "Depository institution" has the same meaning as in section 3 of the Federal Deposit
Insurance Act, and includes any credit union.
     (2) "Federal banking agencies" means the Board of Governors of the Federal Reserve
System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the
National Credit Union Administration, and the Federal Deposit Insurance Corporation.
     (3) "Immediate family member" means a spouse, child, sibling, parent, grandparent, or
grandchild. This includes stepparents, stepchildren, stepsiblings, and adoptive relationships.
     (4) "Individual" means a natural person.
     (5)(i) "Loan processor or underwriter" means an individual who performs clerical or
support duties as an employee at the direction of, and subject to the supervision and instruction of,
a person licensed as a lender or as a loan broker, or exempt from licensing under chapters chapter
14 or 14.1 of this title 19.
     (ii) For purposes of subsection (5)(i), "clerical or support duties" may include subsequent
to the receipt of an application:
     (A) The receipt, collection, distribution, and analysis of information common for the
processing or underwriting of a residential mortgage loan; and
     (B) Communicating with a consumer to obtain the information necessary for the processing
or underwriting of a loan, to the extent that such communication does not include offering or
negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or
terms.
     (iii) An individual engaging solely in loan processor or underwriter activities shall not
represent to the public, through advertising or other means of communicating or providing
information including the use of business cards, stationery, brochures, signs, rate lists, or other
promotional items, that such individual can or will perform any of the activities of a mortgage loan
originator.
     (6)(i) "Mortgage loan originator" means:
     (A) An individual who, for compensation or gain or in the expectation of compensation or
gain:
     (I) Takes a residential mortgage loan application; or
     (II) Offers or negotiates terms of a residential mortgage loan;
     (B) Does not include an individual engaged solely as a loan processor or underwriter except
as otherwise provided in § 19-14.10-4(c);
     (C) Does not include a person or entity who or that only performs real estate brokerage
activities and is licensed or registered in accordance with Rhode Island law, unless the person or
entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any
agent of such lender, mortgage broker, or other mortgage loan originator;
     (D) Does not include a person or entity solely involved in extensions of credit relating to
timeshare plans, as that term is defined in 11 U.S.C. § 101(53D), as amended; and
     (E) Does not include a person (or its employees) engaged in servicing mortgage loans. For
purposes of this exclusion, "servicing mortgage loans" means, on behalf of the note holder,
collecting and receiving payments, including payments of principal, interest, escrow amounts, and
other sums due, on obligations due and owing to the note holder pursuant to a residential mortgage
loan, and, when the borrower is in default or in reasonably foreseeable likelihood of default,
working with the borrower on behalf of the note holder and pursuant to the contract between the
person servicing mortgage loans and the note holder, to modify but not refinance, either temporarily
or permanently, the obligations, or otherwise finalizing collection of the obligation through the
foreclosure process.
     (ii) "Real estate brokerage activity" means any activity that involves offering or providing
real estate brokerage services to the public, including:
     (A) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of
real property;
     (B) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of
real property;
     (C) Negotiating, on behalf of any party, any portion of a contract relating to the sale,
purchase, lease, rental, or exchange of real property (other than in connection with providing
financing with respect to any such transaction);
     (D) Engaging in any activity for which a person engaged in the activity is required to be
registered or licensed as a real estate agent or real estate broker under any applicable law; and
     (E) Offering to engage in any activity, or act in any capacity, described in subparagraphs
subsection 6(ii)(A), (B), (C), or (D) of this section.
     (7) "Nationwide Mortgage Multistate Licensing System and Registry" means a mortgage
licensing system developed and maintained by the Conference of State Bank Supervisors and the
American Association of Residential Mortgage Regulators for the licensing and registration of
licensed mortgage loan originators.
     (8) "Nontraditional mortgage product" means any mortgage product other than a thirty-
year (30), fixed-rate mortgage.
     (9) "Person" means a natural person, corporation, company, limited-liability company,
partnership, association, or any other entity however organized.
     (10) "Registered mortgage loan originator" means any individual who:
     (i) Meets the definition of mortgage loan originator and is an employee of:
     (A) A depository institution;
     (B) A subsidiary that is:
     (1) (I) Owned and controlled by a depository institution; and
     (2) (II) Regulated by a Federal banking agency; or
     (C) An institution regulated by the Farm Credit Administration; and
     (ii) Is registered with, and maintains a unique identifier through, the Nationwide Mortgage
Multistate Licensing System and Registry.
     (11) "Residential mortgage loan" means any loan primarily for personal, family, or
household use that is secured by a mortgage, deed of trust, or other equivalent, consensual security
interest on a dwelling (as defined in § 103(v) of the Truth in Lending Act) or residential real estate
upon which is constructed or intended to be constructed a dwelling (as so defined).
     (12) "Residential real estate" means any real property located in Rhode Island upon which
is constructed, or intended to be constructed, a dwelling.
     (13) "SAFE Act" means the Secure and Fair Enforcement for Mortgage Licensing Act,
comprising §§ 1501-1517 of the Housing and Economic Recovery Act of 2008, Public Laws 110-
289 Pub. L. No. 110-289.
     (14) "Unique identifier" means a number or other identifier assigned by protocols
established by the nationwide mortgage licensing system and registry Nationwide Multistate
Licensing System.
     19-14.10-4. License and registration required.
     (a) An individual, unless specifically exempted from this chapter under subsection (b),
shall not engage in the business of a mortgage loan originator with respect to any dwelling located
in this state without first obtaining and maintaining annually a license under this chapter. Each
licensed mortgage loan originator must register with and maintain a valid unique identifier issued
by the nationwide mortgage licensing system and registry.
     (b) The following individuals are exempt from this chapter:
     (1) Registered mortgage loan originators, when acting for an entity described in § 19-14.10-
3(10)(i)(A), (10)(i)(B), or (10)(i)(C) are exempt from this chapter.
     (2) Any individual who offers or negotiates terms of a residential mortgage loan with or on
behalf of an immediate family member of the individual.
     (3) Any individual who offers or negotiates terms of a residential mortgage loan secured
by a dwelling that served as the individual's residence.
     (4) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf
of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is
compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of
such lender, mortgage broker, or other mortgage loan originator.
     (5) A licensed attorney when performing loan closing services for a licensed lender,
licensed loan broker, or for an entity exempt from licensing under § 19-14.1-10(a)(4);
     (6) A mortgage loan originator: (i) Who is employed by a lender or loan broker licensed
under chapter 14 of title 19 and/or chapter 14.1 of this title 19; (ii) Who works at a qualified
location; (iii) Who is registered with, and maintains a unique identifier through, the Nationwide
Mortgage Multistate Licensing System and Registry; (iv) Who acts only as a mortgage loan
originator for residential mortgage loans secured by dwellings (as defined in Section 103(v) of the
Truth in Lending Act) constructed, or to be constructed, on real property located in states other than
Rhode Island; and (v) Who is licensed or registered as required by applicable law in each state in
which such real property is located. As used herein, the term "qualified location" means a location
licensed under this chapter 14 of this title 19 that serves as the primary place of employment of at
least one mortgage loan originator licensed under this chapter 14.10 of title 19 or a remote location.
     (c) An individual loan processor or underwriter who is an independent contractor may not
engage in the activities of a loan processor or underwriter unless such the independent contractor
loan processor or underwriter obtains and maintains a license under chapters chapter 14 of this
title and 14.10 of title 19 this chapter. Each independent contractor loan processor or underwriter
licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by
the nationwide mortgage licensing system and registry.
     (d) For the purposes of implementing an orderly and efficient licensing process the director,
or the director's designee, may establish licensing rules or regulations and interim procedures for
licensing and acceptance of applications. For previously registered or licensed individuals the
director, or the director's designee, may establish expedited review and licensing procedures as
follows:
     (1) A mortgage loan originator applicant whose employer at the time of application for a
mortgage loan originator license is an entity described in § 19-14.10-3(10)(i)(A), (10)(i)(B), or
(10)(i)(C) and who has been assigned a unique identifier through the nationwide mortgage licensing
system and registry and who has completed and filed with the director, or the director's designee,
all information, documents, and requirements for licensure pursuant to this chapter shall be
permitted to continue to act as a mortgage loan originator for the period prior to action being taken
on his or her application by the director, or the director's designee;
     (2) A mortgage loan originator applicant who has been assigned a unique identifier through
the Nationwide Mortgage Multistate Licensing System and Registry and who has completed and
filed with the director, or the director's designee, all information, documents, and requirements for
licensure pursuant to this chapter and whose employer at the time of application for a mortgage
loan originator license is a lender or loan broker licensed under chapters 14 and 14.1 of this title
19, shall be permitted to continue to act as a mortgage loan originator for the period prior to action
being taken on his or her application by the director, or director's designee, if the applicant and a
senior officer or principal of such lender or loan broker files written attestation to the director, or
the director's designee that:
     (i) The applicant is currently, or has within the six-month (6) period prior to the date of the
application, been acting as a registered mortgage loan originator in this state or as a state-licensed
mortgage loan originator in another state, in either case under the provisions of Section 1507 of the
SAFE Act, 12 U.S.C. § 5106;
     (ii) The applicant has never had a mortgage loan license or registration denied, revoked, or
suspended in any governmental jurisdiction; and
     (iii) The applicant has not been convicted of a felony that would otherwise authorize the
director, or the director's designee, to deny the applicant a license.
     (3) Any provisional authority to act as a mortgage loan originator issued pursuant to this
subsection (d) shall expire on the earlier of: (i) The date on which the director, or the director's
designee, issues or denies the application for the license; or (ii) One hundred twenty (120) days
from the date of application for the license.
     (4) The director, or the director's designee, may deny or suspend the rights of a lender or
loan broker licensed under chapter 14 or 14.1 of this title 19 to employ a mortgage loan originator
under this subsection (d) if the director, or the director's designee, finds that such lender or loan
broker, a senior official or principal thereof, or the applicant failed to exercise due diligence and
good faith when submitting the attestations required in subsection (d)(1) or (d)(2).
     19-14.10-8. Testing of loan originators.
     (a) In order to meet the written test requirement referred to in this chapter, an individual
shall pass, in accordance with the standards established under this subsection, a qualified written
test developed by the Nationwide Mortgage Multistate Licensing System and Registry and
administered by a test provider approved by the Nationwide Mortgage Multistate Licensing System
and Registry based upon reasonable standards.
     (b) A written test shall not be treated as a qualified written test for purposes of this section
unless the test adequately measures the applicant's knowledge and comprehension in appropriate
subject areas, including:
     (1) Ethics;
     (2) Federal law and regulation pertaining to mortgage origination;
     (3) State law and regulation pertaining to mortgage origination;
     (4) Federal and state law and regulation, including instruction on fraud, consumer
protection, the nontraditional mortgage marketplace, and fair-lending issues.
     (c) Nothing in this section shall prohibit a test provider approved by the Nationwide
Mortgage Multistate Licensing System and Registry from providing a test at the location of the
employer of the applicant or the location of any subsidiary or affiliate of the employer of the
applicant, or the location of any entity with which the applicant holds an exclusive arrangement to
conduct the business of a mortgage loan originator.
     (d)(1) An individual shall not be considered to have passed a qualified written test unless
the individual achieves a test score of not less than seventy-five percent (75%) correct answers to
questions.
     (2) An individual may retake a test three (3) consecutive times with each consecutive taking
occurring at least thirty (30) days after the preceding test.
     (3) After failing three (3) consecutive tests, an individual shall wait at least six (6) months
before taking the test again.
     (4) A licensed mortgage loan originator who fails to maintain a valid license for a period
of five (5) three (3) years or longer shall retake the test, not taking into account any time during
which such individual is a registered mortgage loan originator.
     19-14.10-10. Continuing education for mortgage loan originators.
     (a) In order to meet the annual continuing education requirements referred to in § 19-14.10-
9, a licensed mortgage loan originator shall complete at least (8) hours of education approved in
accordance with subsection (b), which shall include at least:
     (1) Three (3) hours of Federal federal law and regulations;
     (2) Two (2) hours of ethics, which shall include instruction on fraud, consumer protection,
and fair-lending issues;
     (3) Two (2) hours of training related to lending standards for the nontraditional mortgage
product marketplace; and
     (4) One hour of Rhode Island law and regulations.
     (b) For purposes of this section, continuing education courses shall be reviewed and
approved by the Nationwide Mortgage Multistate Licensing System and Registry based upon
reasonable standards. Review and approval of a continuing education course shall include review
and approval of the course provider.
     (c) Nothing in this section shall preclude any education course, as approved by the
Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the
mortgage loan originator or an entity that is affiliated with the mortgage loan originator by an
agency contract, or any subsidiary or affiliate of such employer or entity.
     (d) Continuing education may be offered either in a classroom, online, or by any other
means approved by the Nationwide Mortgage Multistate Licensing System and Registry.
     (e) A licensed mortgage loan originator:
     (1) Except for § 19-14.10-9(b) and subsection (i) of this section, may only receive credit
for a continuing education course in the year in which the course is taken; and
     (2) May not take the same approved course in the same or successive years to meet the
annual requirements for continuing education.
     (f) A licensed mortgage loan originator who is an approved instructor of an approved
continuing education course may receive credit for the licensed mortgage loan originator's own
annual continuing education requirement at the rate of two (2) hours credit for every one hour
taught.
     (g) A person having successfully completed the education requirements approved by the
Nationwide Mortgage Multistate Licensing System and Registry in subsections (a)(1), (a)(2), and
(a)(3) for any state shall be accepted as credit towards completion of continuing education
requirements in Rhode Island. Nothing herein shall relieve an applicant of the obligation to satisfy
educational requirements specifically related to Rhode Island law and regulations.
     (h) A licensed mortgage loan originator who subsequently becomes unlicensed must
complete the continuing education requirements for the last year in which the license was held prior
to issuance of a new or renewed license.
     An individual who:
     (1) Fails to acquire a valid mortgage loan originator license or federal registration within
three (3) years from the date of federal compliance with any approved pre-licensure education (PE)
program; or
     (2) Has obtained a mortgage loan originator license or federal registration but did not
maintain an active license or federal registration for at least three (3) years must complete at least
twenty (20) hours of PE in order to be eligible for state mortgage loan originator licensure.
     (i) A person meeting the requirements of § 19-14.10-9(a)(1) and (a)(3) may make up any
deficiency in continuing education as established by rule or regulation of the director, or the
director's designee.
     19-14.10-21. Unique identifier shown.
     The name and the unique identifier assigned by the Nationwide Multistate Licensing
System of any person originating a residential mortgage loan shall be clearly shown on all
residential mortgage loan application forms, solicitations or advertisements, including business
cards or websites, and any other documents as established by rule, regulation, or order of the
director, or the director's designee.
     SECTION 5. Chapter 19-4 of the General Laws entitled "Regulatory Oversight" is hereby
amended by adding thereto the following section:
     19-4-19. Resident agent -- Financial Institutions institutions.
     Each bank and lending institution doing business in this state, whether acting under state
or federal authority, shall maintain a resident agent in this state who shall have authority to endorse
insurance claim checks on behalf of those banks and lending institutions, which banks and lending
institutions shall include, but are not limited to:
     (1) A bank, savings bank, or trust company, as defined in this title, its affiliates or
subsidiaries,;
     (2) A bank holding company, as defined in 12 U.S.C. § 1841, its affiliates or subsidiaries,;
     (3) Mortgage companies,; and
     (4) Any other individual, corporation, partnership, or association authorized to take
deposits and/or to make loans of money under the provisions of this title 19.
     SECTION 6. Chapter 19-14 of the General Laws entitled "Licensed Activities" is hereby
amended by adding thereto the following section:
     19-14-34. Resident agent -- Loss payee.
     (a) Each licensee shall maintain a resident agent in this state who shall have authority to
endorse insurance claim checks on behalf of such the licensee.
     (b) A licensee that has not and will not be included as a loss payee on any insurance policy
may be exempted from the provisions of subsection (a) of this section and §§ 5-38-26 and 27-5-
3.3. An applicant that wishes to obtain an exemption must clearly state in its business plan that it
is not a loss payee on any insurance policy and must provide the department with a statement that
it will not be designated as a loss payee on any insurance policy. A licensee that obtains an
exemption should expect that compliance will be evaluated on examination.
     SECTION 7. Sections 19-4-5 and 19-4-7 of the General Laws in Chapter 19-4 entitled
"Regulatory Oversight" are hereby repealed.
     19-4-5. Quarterly statement of condition of regulated institutions.
     At least once every three (3) months, every regulated institution shall prepare a statement
showing the condition of the regulated institution as it appears upon its books, in the form of a
balance sheet prepared in accordance with generally accepted accounting principles. This statement
shall be posted in a conspicuous place, where it may be easily read by the public.
     19-4-7. Balance sheet form -- Publication of report.
     Once each calendar year, every financial institution, at its own expense, shall publish a
report in the form of a balance sheet, in a newspaper in the city or town in which the financial
institution is located. If there is no newspaper published in the city or town where the financial
institution is located, then the report shall be published in a newspaper published in a city or town
nearby.
     SECTION 8. Section 19-14.8-12 of the General Laws in Chapter 19-14.8 entitled "Uniform
Debt-Management Services Act" is hereby repealed.
     19-14.8-12. Registration in another state.
     If a provider holds a license or certificate of registration in another state authorizing it to
provide debt-management services, the provider may submit a copy of that license or certificate
and the application for it instead of an application in the form prescribed by § 19-14.8-5(a), § 19-
14.8-6, or § 19-14.8-11(b). The director shall accept the application and the license or certificate
from the other state as an application for registration as a provider or for renewal of registration as
a provider, as appropriate, in this state if:
     (1) The application in the other state contains information substantially similar to, or more
comprehensive than, that required in an application submitted in this state;
     (2) The applicant provides the information required by § 19-14.8-6(1), (3), (10), (12), and
(13); and
     (3) The applicant, under oath or certified under the penalties of perjury, certifies that the
information contained in the application is current or, to the extent it is not current, supplements
the application to make the information current.
     SECTION 9. This act shall take effect upon passage.
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LC005313
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