The bill amends Section 19-3-3 of the General Laws to establish a maximum aggregate liability for borrowers from financial institutions, setting a limit at fifteen percent (15%) of the institution's unimpaired capital and including credit exposure from derivative transactions in this calculation. Certain obligations are excluded from this limitation, and the bill replaces references to the "Office of Thrift Supervision" with the "Federal Reserve System." It also amends Sections 19-14-1 and 19-14-5, updating definitions and regulatory language for terms such as "bona fide employee," "check casher," "currency transmission," and "deferred-deposit transaction," and clarifies activities that constitute currency transmission, including control of virtual currency transactions.

Furthermore, the bill defines "Tangible net worth" for currency transmission licensees and updates capital requirements for financial service providers, removing the inclusion of virtual currency in net worth calculations. It revises the definition of "mortgage loan originator" and outlines responsibilities for student loan servicers, including providing borrowers with loan information and establishing policies for alternative repayment arrangements. The bill also addresses the servicing of student education loans, the transfer of loan servicing, and prohibits servicers from withholding student transcripts due to delinquency. It amends the Rhode Island Home Loan Protection Act, repeals and replaces a section in the "Currency Transmissions" chapter, and introduces requirements for licensees to maintain permissible investments held in trust for customers. The bill specifies what constitutes permissible investments and grants the director authority to identify and allow other types of investments. It also allows for the seizure of assets by the director in case of insolvency and sets conditions for maintaining permissible investments. The act is set to take effect upon passage.

Statutes affected:
7282: 19-3-3, 19-33-8, 34-25.2-11, 19-14.3-2