It is enacted by the General Assembly as follows:

SECTION 1. Section 19-3-3 of the General Laws in Chapter 19-3 entitled "POWERS AND OPERATIONS" is hereby amended to read as follows:

19-3-3. Maximum aggregate liability of one person or company. -- No financial institution shall permit any person or entity to borrow or guaranty an amount(s), directly or indirectly, in the aggregate, which exceeds fifteen percent (15%) of its unimpaired capital. This limitation shall not include:

(a) obligations issued by the United States;

(b) general obligations of the state of Rhode Island;

(c) loans or any portion thereof which are insured or guaranteed by the United States or any agency thereof;

(d) inter-bank transactions involving the transfer of immediately available funds resulting from credits to deposit balances at federal reserve banks or from credit to new or existing deposit balances due from a correspondent depository institution (commonly known as the sale of federal funds) with a maturity of one (1) business day or less; or

(e) loans secured by deposits within the financial institution where a perfected interest in such is on record.

{ADD To the extent that a deposit-taking institution regulated by the federal office of thrift supervision and insured by the Federal Deposit Insurance Corporation is expressly permitted to make loans which would exceed the limitations set forth in this section, the lending limitations of the Office of Thrift Supervision shall apply. Nothing herein shall limit the Department of Business Regulation from taking any action it deems appropriate to maintain appropriate safety and soundness standards relative to any loan or loans made by any financial institutions. ADD}

SECTION 2. This act shall take effect upon passage.