The bill amends Section 19-14.1-10 of the General Laws concerning "Lenders and Loan Brokers" by introducing a new section titled "Special exemptions." It specifies that the licensing provisions of Chapter 14 do not apply to various entities, including nonprofit organizations, regulated institutions, and certain individuals acting on behalf of licensed entities. Notably, the bill removes the previous exemption that allowed individuals who originate fewer than six loans in a twelve-month period to operate without a license. This change aims to tighten regulations on lenders and ensure that all loan origination activities are subject to oversight.

Additionally, the bill outlines several categories of loans that are exempt from the licensing requirements, such as loans to business entities, loans over $25,000 for commercial purposes, and loans secured by accounts receivable or business inventory. It also clarifies that no license is needed for individuals engaging in deferred deposit transactions if they hold a valid check-cashing license. The act is set to take effect upon passage, reflecting a significant shift in the regulatory landscape for lenders and loan brokers in the state.

Statutes affected:
83: 19-14.1-10