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Rhode Island General Laws Title 6. Commercial Law--General Regulatory Provisions § 6-16-5.1. Transfers voidable as to depository creditors of financial institutions closed by proclamation of the governor dated January 1, 1991--Remedies

Current as of January 01, 2026 | Updated by Findlaw Staff

(a) A transfer made or obligation incurred by any financial institution closed by proclamation of the governor dated January 1, 1991, is voidable as to any depository creditor of record of any such financial institution as of January 1, 1991, if the transfer or obligation involved either:

(1) The withdrawal of deposits from the financial institution by any officer, director, or employee of the financial institution or of the Rhode Island share and deposit indemnity corporation, with knowledge of the actual or impending insolvency or the impending closing of the financial institution or of the actual or impending insolvency of or the actual or impending cessation of business by the Rhode Island share and deposit indemnity corporation, and for the purpose of avoiding the loss of funds or access to funds in any depository account in the financial institution;

(2) The encumbrance of any assets of the financial institution to or for the benefit of any officer, director, or employee of the financial institution or of the Rhode Island share and deposit indemnity corporation, with knowledge of the actual or impending insolvency or the impending closing of the financial institution or of the actual or impending insolvency of or the actual or impending cessation of business by the Rhode Island share and deposit indemnity corporation, and for the purpose of avoiding the loss of funds or access to funds in any depository account in the financial institution;  or

(3) A transfer or obligation defined as voidable under § 6-16-4 or § 6-16-5.

(b) In addition to any remedies provided by § 6-16-7, (1) any financial institution closed by proclamation of the governor dated January 1, 1991;  (2) any assignees of and successors in interest to any such financial institution;  and (3) any depository creditor of record of any such financial institution as of January 1, 1991, who suffers monetary loss as a result of a transfer or conveyance defined as voidable under this section or who is otherwise aggrieved by the transfer or conveyance, shall have a private cause of action at law and in equity against any officer, director, or employee of the financial institution or of the Rhode Island share and deposit indemnity corporation to whom the subject transfer was made or to whom or for whose benefit any assets of the financial institution were encumbered.

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Cite this article: FindLaw.com - Rhode Island General Laws Title 6. Commercial Law--General Regulatory Provisions § 6-16-5.1. Transfers voidable as to depository creditors of financial institutions closed by proclamation of the governor dated January 1, 1991--Remedies - last updated January 01, 2026 | https://codes.findlaw.com/ri/title-6-commercial-law-general-regulatory-provisions/ri-gen-laws-sect-6-16-5-1/

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