§ 19-3-3 - Maximum aggregate liability of one person or company.
SECTION 19-3-3
§ 19-3-3 Maximum aggregate liability ofone person or company. – (a) No financial institution shall permit any person or entity to borrow orguaranty an amount(s), directly or indirectly, in the aggregate, which exceedsfifteen percent (15%) of its unimpaired capital. This limitation shall notinclude:
(1) Obligations issued by the United States;
(2) General obligations of the state of Rhode Island;
(3) Loans or any portion thereof which are insured orguaranteed by the United States or any agency thereof;
(4) Inter-bank transactions involving the transfer ofimmediately available funds resulting from credits to deposit balances atfederal reserve banks or from credit to new or existing deposit balances duefrom a correspondent depository institution (commonly known as the sale offederal funds) with a maturity of one business day or less; or
(5) Loans secured by deposits within the financialinstitution where a perfected interest in the deposits is on record.
(b) To the extent that a deposit taking institution regulatedby the federal office of thrift supervision and insured by the federal depositinsurance corporation is expressly permitted to make loans that would exceedthe limitations set forth in this section, the lending limitations of theoffice of thrift supervision shall apply. Nothing herein shall limit thedepartment of business regulation from taking any action it deems appropriateto maintain appropriate safety and soundness standards relative to any loan orloans made by any financial institutions.