Rhode Island General Laws 42-116-32. Corporation’s right to subrogation
(a) Any depositor who receives payments under this chapter is deemed to have assigned to the corporation all rights, claims, and causes of action which he or she may have (1) against any eligible institution, (2) against any officers, directors, employees, or agents of the institution, and (3) against any person who performs or who has performed any financial audit or examination of the institution or who performs or who has performed other professional services for the institution, to the extent and in the full amount of those payments. The corporation may require the execution of a document evidencing and setting forth the terms of the aforesaid assignment, as a condition precedent to his or her receipt of payments under this chapter.
Terms Used In Rhode Island General Laws 42-116-32
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the Rhode Island depositors economic protection corporation. See Rhode Island General Laws 42-116-3
- Eligible institution: means : (i) any credit union, loan and investment company, bank and trust company or other depository institution; (A) the accounts of which were insured by the Rhode Island share and deposit indemnity corporation as of December 30, 1990, and (B) for which a conservator or receiver had been appointed subsequent to January 1, 1991; and (ii) any conservator or appointed receiver; and (iii) the Rhode Island share and deposit indemnity corporation; and (iv) Heritage Loan and Investment Company. See Rhode Island General Laws 42-116-3
- Person: means any natural or corporate person, including bodies politic and corporate, public departments, offices, agencies, authorities and political subdivisions of the state, corporations, societies, associations and partnerships, and subordinate instrumentalities of any one or more political subdivisions of the state. See Rhode Island General Laws 42-116-3
- Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
(b) The subrogation rights of the corporation under this section shall have the same priority against the assets of the eligible institution or any of the other persons listed in subsection (a) as that possessed by the depositor entitled to receive payments under this chapter.
(c) Nothing in this section shall be construed:
(1) To extinguish, diminish, abrogate or assign any rights, claims or causes of action which a depositor may have against (i) any eligible institution, (ii) any officers, directors, employees, or agents of the institution, or (iii) any person who performs or who has performed any financial audit or examination of the institution or who performs or who has performed other professional services for the institution, for any losses, of any nature whatsoever, in excess of the amount of the payments received by the depositor from the corporation under this chapter; or
(2) To extinguish, diminish, change, or affect the civil liability or the criminal culpability of (i) any eligible institution, (ii) any officers, directors, employees or agents of any eligible institution, or (iii) any person who performs or who has performed any financial audit or examination of an institution or who performs or who has performed other professional services for an institution.
History of Section.
P.L. 1991, ch. 3, § 4.