Rhode Island General Laws 34-25.2-9. Subterfuge prohibited
It shall be a violation of this chapter for any person to attempt in bad faith to avoid the application of this chapter by:
(1) Dividing any loan transaction into separate parts for the purpose of evading the provisions of this chapter;
(2) Structuring a home loan transaction as an open-end loan for the purpose of evading the provisions of this chapter when the loan would have been a high-cost home loan if the loan had been structured as a closed-end loan;
(3) Engaging in any other subterfuge with the intent of evading any provision of this chapter.
History of Section.
P.L. 2006, ch. 569, § 1; P.L. 2006, ch. 573, § 1; P.L. 2011, ch. 363, § 16.
Terms Used In Rhode Island General Laws 34-25.2-9
- High-cost home loan: means a home loan in which the terms of the loan meet or exceed one of more of the thresholds as defined in subsection (r) of this section. See Rhode Island General Laws 34-25.2-4
- Home loan: means a loan, including an open-end credit plan, other than a reverse mortgage transaction, where the loan is secured by:
(1) A mortgage or deed of trust on real estate in this state upon which there is located or there is to be located a structure or structures designed principally for occupancy of from one to four (4) families which is or will be occupied by a borrower as the borrower's principal dwelling; or
(2) A security interest on a manufactured home which is or will be occupied by a borrower as the borrower's principal dwelling. See Rhode Island General Laws 34-25.2-4
- person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6