Rhode Island § 19-9-7 - Community Obligations and Banking Offenses

§ 19-9-7. Attorney’s opinions.

(a) Except as provided in subsections (b) through (d), no lending institution making a loan in this state, or any attorney, agent, or representative for that lending institution, shall directly or indirectly, as a condition of a loan or advance, require any attorney representing a borrower in the loan transaction to give an opinion in relation to the validity, binding effect, or enforceability of any of the loan documents or the availability of remedies thereunder.

(b) Subsection (a) shall not apply to any transaction in which the state, or any municipality in the state, or any department, agency, authority, or instrumentality of the state is the borrower.

(c) Subsection (a) shall not apply to transactions involving the public sale or underwriting of bonds, debentures, or other securities.

(d) Subsection (a) shall not prohibit, as part of a loan transaction, any requirement or condition with respect to opinions dealing with the authority and status of a borrower and matters relating to collateral.

(e) No opinion obtained in violation of this section may be relied on for any purpose, and this opinion shall not give rise to, or form the basis for, any action against any attorney or firm rendering the opinion. Any lending institution, or attorney, agent, or representative of a lending institution, knowingly violating this section shall be subject to an action as may be lawfully imposed by the regulatory authority or court that has licensing or disciplinary authority over the lending institution, attorney, or other individual in question.