Section 280-RICR-20-10-1.16 - Sales/Transfers by Banks and Insurance CompaniesA. State banks, mutual savings banks, federal savings banks, trust companies, national banking associations, building and loan associations and credit unions, whether or not such entities are chartered in, or have a place of business in Rhode Island and loan and investment companies organized under R.I. Gen. Laws Chapter 19-20 are not subject to the tax imposed on corporations under R.I. Gen. Laws Chapter 44-11. Insurance companies are likewise exempt from tax imposed on corporations under R.I. Gen. Laws Chapter 44-11. Therefore, those specific types of lending institutions and insurance companies are not subject to the withholding provisions of R.I. Gen. Laws § 44-30-71.3 when they sell real estate that they own. Any description in the granting clause of the deed which sufficiently identifies those entities as one of the entities mentioned herein is sufficient to discharge any lien imposed pursuant to R.I. Gen. Laws § 44-30-71.3.B. Exception - Bank Foreclosure/deeds in Lieu of Foreclosure 1. The purchaser at a foreclosure sale under power of sale takes, not as grantee of the mortgagee, but as a grantee of the mortgagor. Therefore, when a bank forecloses on a defaulting nonresident mortgagor and a third party purchases at the foreclosure sale for an amount in excess of the sums legally due on the mortgage, the purchaser must withhold six (6) percent (or seven (7) percent if the mortgagor is a corporation) of the net proceeds resulting from the sale. (Where there are net proceeds and junior lienholders, see § 1.7 of this Part.) Provided, however, no withholding is required if there are no net proceeds disbursed to the mortgagor as a result of the foreclosure or deed given in lieu of foreclosure. In those instances the foreclosure deed or deed in lieu of foreclosure may contain a recital that the transfer of the property was the subject of foreclosure and there were no net proceeds subject to the withholding provisions of R.I. Gen. Laws § 44-30-71.3. The recording of such deed shall in all instances discharge the lien imposed by R.I. Gen. Laws §44-30 - 71.3(c).280 R.I. Code R. § 280-RICR-20-10-1.16