The bill amends various sections of the General Laws to update financial regulations and definitions. It revises the maximum liability a financial institution can allow a person or entity to borrow or guarantee, setting the limit at fifteen percent of the institution's unimpaired capital and including credit exposure from derivative transactions in the calculation. The director is empowered to determine the method for calculating credit exposure. Certain obligations, such as those issued by the United States or guaranteed by federal agencies, are excluded from this limitation. The bill also updates terminology in the financial sector, redefining terms like "check," "check casher," "currency transmission," and "deferred-deposit transaction," and includes detailed definitions for various financial services, transactions, and roles within the mortgage and loan industry.

Furthermore, the bill introduces new requirements for currency transmission licensees, changing the minimum net worth requirement from fifty thousand dollars to a tangible net worth of at least one hundred thousand dollars or a percentage of total assets. It also updates the definitions related to mortgage loan originators and introduces new responsibilities for student loan servicers to enhance transparency and fairness. Servicers must provide borrowers with annual loan terms, establish policies for repayment arrangements, and respond to inquiries promptly. The bill prohibits withholding student transcripts for delinquent payments and outlines the handling of funds by money transmission licensees, specifying permissible investments and the establishment of a statutory trust for the benefit of customers. It also sets conditions for maintaining permissible investments and allows the director to seize assets in case of insolvency. The act takes effect upon passage.

Statutes affected:
7282: 19-3-3, 19-14.10-3, 34-25.2-11, 19-14.3-2