§ 19-9-32 - Disclosure of arson conviction.
SECTION 19-9-32
§ 19-9-32 Disclosure of arson conviction.– (a) Every financial institution making loans within this state secured by aninterest in real estate may require applicants for loans to disclose whether ornot the applicant or applicants have been convicted of any degree of the crimeof arson as described in chapter 4 of title 11 within ten (10) years prior tothe date of application.
(b) A financial institution may use the existence of an arsonconviction within ten (10) years of the application date as a reason to denythe application.
(c) Failure to disclose the existence of an arson convictionwhen requested upon a mortgage application shall be a misdemeanor punishable bya sentence of not more than one year imprisonment.
(d) The mortgage application form shall indicate theexistence of a criminal penalty for failure to disclose a conviction for arson.
(e) For the purpose of this section, the term "applicant"means a natural person, trust, partnership, association, corporation or otherform of business organization; provided, however, that if the applicant is atrust, the beneficiaries of the trust shall be included, and if the applicantis a partnership, association, corporation or other form of businessorganization, each member, director, shareholder owning more than twentypercent (20%) of the common stock issued by the corporation, and principalofficer of the organization shall be included.