Chapter 152

2007 -- S 0230 SUBSTITUTE B

Enacted 06/30/07

A N A C T

RELATING TO FINANCIAL INSTITUTIONS -- THE USE OF THE NAME OF

FINANCIAL INSTITUTIONS

Introduced By: Senators Tassoni, Maselli, Doyle, and McBurney

Date Introduced: February 07, 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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LC01382/SUB B/2

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