2024 -- S 2275

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LC004615

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

INTEREST AND USURY

     

     Introduced By: Senators Murray, Mack, Ciccone, Raptakis, Zurier, DiPalma, Bissaillon,
Acosta, Sosnowski, and Quezada

     Date Introduced: February 12, 2024

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 6-26 of the General Laws entitled "Interest and Usury" is hereby

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amended by adding thereto the following section:

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     6-26-1.1. Election of state opt-out.

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     In accordance with Section 525 of the federal “Depository Institutions Deregulation and

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Monetary Control Act of 1980”, Pub. L. 96-221, the General Assembly declares that the State of

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Rhode Island rejects and does not want the amendments to the “Federal Deposit Insurance Act”,

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12 U.S.C. Sec. 1811 et seq.; the federal “National Housing Act”, 12 U.S.C. Sec. 1701 et seq.; and

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the “Federal Credit Union Act”, 12 U.S.C. Sec. 1757, made by sections 521 to 523 of the federal

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“Depository Institutions Deregulation and Monetary Control Act of 1980”, Pub. L. 96-221,

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prescribing interest rates and preempting state interest rates to apply to consumer credit transactions

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in this state. As a result of this rejection, the rates established in § 6-26-2 and in title 19 shall control

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consumer credit transactions in this state.

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     SECTION 2. This act shall take effect on October 1, 2024.

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LC004615

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

INTEREST AND USURY

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     This act would opt Rhode Island out of those provisions of the “Depository Institutions

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Deregulation and Monetary Control Act of 1980” (DIDMCA) which allow financial institutions

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chartered in states other than Rhode Island to be exempt from interest rate limits which apply to

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financial institutions chartered in Rhode Island and which are set in Rhode Island statute.

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     This act would take effect on October 1, 2024.

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LC004615

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