2025 -- S 0376

========

LC001882

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

____________

A N   A C T

RELATING TO FINANCIAL INSTITUTIONS -- DEFINITIONS AND ESTABLISHMENT OF

FINANCIAL INSTITUTIONS

     Introduced By: Senators DiPalma, Lawson, Tikoian, and Gu

     Date Introduced: February 26, 2025

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 19-1-1 of the General Laws in Chapter 19-1 entitled "Definitions and

Establishment of Financial Institutions" is hereby amended to read as follows:

     19-1-1. Definitions.

     Unless otherwise specified, the following terms shall have the following meanings

throughout this title:

     (1) “Agreement to form” means the agreement to form a financial institution or the

agreement to form a credit union, as applicable, pursuant to this title, and includes, for financial

institutions organized before December 31, 1995, the articles of incorporation or the agreement of

association of the financial institution, where applicable.

     (2) “Branch” means any office or place of business, other than the main office or customer-

bank-communication-terminal outlets as provided for in this title, at which deposits are received,

or checks paid or money lent, or at which any trust powers are exercised. Any financial institution

that had, on or before June 30, 2003, established an office or place of business, other than its main

office, at which trust powers are exercised, shall not be required to obtain the approval of the

director, or the director’s designee, pursuant to § 19-2-11 for any such offices established as of that

date.

     (3) “Credit union” means a credit union duly organized under the laws of this state.

     (4) “Director” means the director of the department of business regulation, or the director’s

designee.

     (5) “Division of banking” means the division within the department of business regulation

responsible for the supervision and examination of regulated institutions and/or licensees under

chapter 14 of this title.

     (6) “Federal credit union” means a credit union duly organized under the laws of the United

States.

     (7) “Financial institution” means any entity, other than a credit union, duly organized under

the laws of this state that has the statutory authority to accept money on deposit pursuant to title

19, including an entity that is prohibited from accepting deposits by its own bylaws or agreement

to form; the term includes, but is not limited to banks, trust companies, savings banks, loan and

investment banks, and savings and loan associations.

     (8) “Main office” means, in the case of financial institutions or credit unions, the location

stated in the agreement to form, as amended, and, otherwise, the location recognized by the

institution’s primary banking regulator as its main office.

     (9) “Person” means individuals, partnerships, corporations, limited liability companies, or

any other entity however organized.

     (10) “Regulated institution” means any financial institution, credit union, or other insured-

deposit-taking institution, that is authorized to do business in this state, including one authorized

by operation of an interstate banking statute that allowed its original entry or any non-depository

trust company, organized under the laws of any state or the United States.

     (11) “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.

     (12) “Retail seller” means any person who sells or contracts to sell any goods under a retail

installment contract to a retail buyer.

     (13) “Superintendent” means the deputy director designated by the director as

superintendent of banking in the department of business regulation.

     (14) “Unimpaired capital” means the sum of all capital and allowance accounts minus

estimated losses on assets, calculated in accordance with generally accepted accounting principles.

     (15) “Writing” means hard copy writing or electronic writing that meets the requirements

of § 42-127.1-2(7).

LC001882 - Page 2 of 4

     SECTION 2. This act shall take effect upon passage.

========

LC001882

========

LC001882 - Page 3 of 4

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FINANCIAL INSTITUTIONS -- DEFINITIONS AND ESTABLISHMENT OF

FINANCIAL INSTITUTIONS

***

     This act would amend the definition of "regulated institution", to include non-depository

trust companies organized under the law of any state or the United States Government.

     This act would take effect upon passage.

========

LC001882

========

LC001882 - Page 4 of 4