§ 6-16-5.1 - Transfers fraudulent as to depository creditors of financial institutions closed by proclamation of the governor dated January 1, 1991 – Remedies.
SECTION 6-16-5.1
§ 6-16-5.1 Transfers fraudulent as todepository creditors of financial institutions closed by proclamation of thegovernor dated January 1, 1991 – Remedies. – (a) A transfer made or obligation incurred by any financial institution closedby proclamation of the governor dated January 1, 1991, is fraudulent as to anydepository creditor of record of any such financial institution as of January1, 1991, if the transfer or obligation involved either:
(1) The withdrawal of deposits from the financial institutionby any officer, director, or employee of the financial institution or of theRhode Island share and deposit indemnity corporation, with knowledge of theactual or impending insolvency and/or the impending closing of the financialinstitution or of the actual or impending insolvency of and/or the actual orimpending cessation of business by the Rhode Island share and deposit indemnitycorporation, and for the purpose of avoiding the loss of funds and/or access tofunds in any depository account in the financial institution;
(2) The encumbrance of any assets of the financialinstitution to or for the benefit of any officer, director, or employee of thefinancial institution or of the Rhode Island share and deposit indemnitycorporation, with knowledge of the actual or impending insolvency and/or theimpending closing of the financial institution or of the actual or impendinginsolvency of and/or the actual and/or impending cessation of business by theRhode Island share and deposit indemnity corporation, and for the purpose ofavoiding the loss of funds and/or access to funds in any depository account inthe financial institution; or
(3) A transfer or obligation defined as fraudulent 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 datedJanuary 1, 1991, and (2) any assignees of and successors in interest to anysuch financial institution, and (3) any depository creditors of record of anysuch financial institution as of January 1, 1991, who suffers monetary loss asa result of a transfer or conveyance defined as fraudulent under this sectionor who is otherwise aggrieved by the transfer or conveyance, shall have aprivate cause of action at law and in equity against any officer, director, oremployee of the financial institution or of the Rhode Island share and depositindemnity corporation to whom the subject transfer was made or to whom or forwhose benefit any assets of the financial institution were encumbered.