Rhode Island § 19-9-8 - Community Obligations and Banking Offenses
Full text of Rhode Island Rhode Island General Laws § 19-9-8 — Community Obligations and Banking Offenses, with citation guidance and answers to common questions.
§ 19-9-8. Community Obligations and Banking Offenses
R.I. Gen. Laws § 19-9-8
§ 19-9-8. Lending institutions — Negative amortization loans.
Notwithstanding the provisions of any other laws, any person doing business under and as permitted by any law of this state or of the United States relating to lending institutions is authorized, in connection with the making of any loan, to contract for the accrual of interest, at a rate of interest, equal to or less than the note or contractual rate of interest, on unpaid interest accruing during previous billing or payment periods. Accrued and unpaid interest that is thus added to the principal balance of the loan for the purposes of further interest accrual shall, for the purposes of chapter 26 of title 6, be deemed to constitute additional net proceeds or additional principal of the loan, but shall for all other purposes and all other laws constitute interest on the original loan.
History of Section.
P.L. 1995, ch. 82, § 47.
Source: official Rhode Island text · Last verified 2026-08-27
Frequently Asked Questions About Rhode Island § 19-9-8
What does Rhode Island General Laws § 19-9-8 cover?
Section 19-9-8 ("Community Obligations and Banking Offenses") is part of the Rhode Island General Laws, the codified statutory law of Rhode Island. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Rhode Island § 19-9-8?
A common citation format is "Rhode Island General Laws § 19-9-8" (Rhode Island). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Rhode Island law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Rhode Island official source linked on this page or consult a licensed Rhode Island attorney.
How does Rhode Island § 19-9-8 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Rhode Island can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Rhode Island.