Chapter
143
2007 -- H 5734 SUBSTITUTE B
Enacted 06/28/07
A N A C T
RELATING
TO FINANCIAL INSTITUTIONS -- THE USE OF THE NAME OF
FINANCIAL
INSTITUTIONS
Introduced
By: Representative Peter F. Kilmartin
Date
Introduced: February 28, 2007
It is enacted by the General Assembly as
follows:
SECTION 1. Chapter
19-4 of the General Laws entitled "Regulatory Oversight" is hereby
amended by adding thereto the following section:
19-4-17.1.
Use of regulated financial institutions without permission prohibited. –
Notwithstanding any general or special law to
the contrary, a person, domestic or foreign
corporation, partnership, association, limited
liability company or similar entity shall not use the
name, trade name or trademark of any covered
institution in any written or oral advertisement or
solicitation for products or services, without
the express written consent of the covered
institution. For the purposes of this section,
the word "covered institution" shall mean a regulated
institution as defined in section 19-1-1 or a
lender or loan broker licensed under chapter 19-14 or
any subsidiary of any institution, lender or
broker; and the words "advertisement" or "solicitation"
shall mean an email, direct mail solicitation, or
oral solicitation to a specifically identified
consumer or which contains specific information
on the account or loan of a specifically
identified consumer.
A person,
domestic or foreign corporation, partnership, association, limited liability
company or similar entity shall not make
reference to a covered institution without the express
written consent of the covered institution or
make reference to a loan number, or other specific
loan information, on the outside of an envelope,
visible through the envelope window, or on a
postcard in connection with any written
solicitation or an email for products or services to a
specifically identified consumer.
A person,
domestic or foreign corporation, partnership, association, limited liability
company, or similar entity shall not include a
loan number, or other specific loan information,
other than the loan amount, relative to a
specifically identified consumer that is publicly available
in a written or oral solicitation for the
purchase of products or services unless the solicitation
clearly and conspicuously states in bold-face
type on the front page of the correspondence that the
person, domestic or foreign corporation,
partnership, association, limited liability company or
similar entity is not sponsored by or affiliated
with and that the solicitation is not authorized by
the covered institution. The statement shall
include the name, address and the telephone number
of the person making the solicitation and that
any loan information referenced was not provided
by the covered institution. The statements
required in this paragraph shall also be given at the
time of any oral solicitation to a specifically
identified consumer.
A person, domestic
or foreign corporation, partnership, association, limited liability
company, association or similar entity, which is
considered to have violated this section, shall be
considered to have engaged in an unfair and
deceptive practice.
A covered
institution that has had its name, trade name, or trademark used in violation
of
this section may in addition to any other remedy
provided by law, bring an action in the superior
court in which venue the covered institution has
an office to enjoin an act in violation of this
section and recover damages. The court shall
award damages in the amount of actual damages or
ten thousand dollars ($10,000) per violation
whichever is greater. In any successful action for
injunctive relief or for damages, the court
shall award the covered institution, attorney's fees and
costs, including court costs.
This chapter
shall not apply to, nor shall any action be brought against, the use of a name,
trade name or trademark of any covered
institution where such use would constitute fair use
under federal law.
SECTION 2. This
act shall take effect upon passage.
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LC01371/SUB B/2
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